The past 5+ years, I normally owe the IRS between $500 to $1800 after reporting my W2, 1099INT/DIV. I never have to pay underpayment penalty. I made no changes on my W2 the past 5 years. Salary remains the same the last 5 years (no increase). The only big difference in 2023 is my 1099INT.
In 2023 interest hit the highest point which resulted in massive increase in my 1099-INT (it's likely triple/quadruple the amount I normally get). The total 1099 interest adds a huge amount to my AGI. I am sure I will owe the IRS taxes on my interest income and it's likely a lot (in the thousands). I have not started my 2023 yet so I don't know how much I owe.
Do I have to pay underpayment penalty?
