It's difficult to tell without seeing your tax return, but I do have a couple of questions.
- Were all of your taxes paid from withholdings from wages?
- Was some of the money you earned from a business or outside source?
- Did you have irregular peaks and valise in your income?
- Did you pay quarterly estimated taxes?
- Did you make a large payment at the end of the year?
The IRS says "The Underpayment of Estimated Tax by Individuals Penalty applies to individuals, estates and trusts if you don't pay enough estimated tax on your income or you pay it late. The penalty may apply even if we owe you a refund."
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