Hi amyBoston,
I hope you are having a good day! I agree you don't want to pay a penalty for not having enough federal tax withheld through the year. To possibly reduce or eliminate your underpayment penalty, when working on your 2023 tax return, search for annualizing your tax (use this exact phrase). This will take you to the underpayment penalty section and we'll take you through the steps to possibly reduce what you owe.
You can use our tool to see if your Form W-4 needs to be adjusted,
TurboTax's W-4 Calculator
You may avoid the Underpayment Penalty two ways;
1) if you paid at least 90% of the tax shown on the return for the taxable year or
1) 100% of the tax shown on the return for the prior year, whichever amount is less.
I hope this information is helpful!
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