Have you gone back through and double and triple checked your entries on your W-2. If nothing has changed, it could be an entry error. You can also compare your last years W-2 to this years W-2, to see if there is a drastic difference.
If for some reason, you did have too little withheld this year, then you can possibly get the penalty waived. As you continue through your return, if you have a penalty, it will ask if you would like to see if you can avoid the penalty? Select yes, then it will ask you what your tax liability was last year and a few other questions. If you paid at least 90% of your 2023 taxes or 100% of your 2022 taxes, then you would not be subject to a penalty. If you already answered this question, then it is possibly that you are still seeing the penalty because the form has not been updated yet for 2023. It is expected to be released on January 24th. You may want to log back in on the 24th and then go back and answer the penalty questions.
To do this, select the following:
- Other Tax Situations
- Show more next to Additional Tax Payments
- Start next to Underpayment penalties
- Walk through and answer the questions
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