PaulaM
Employee Tax Expert

Get your taxes done using TurboTax

Underpayment penalties are calculated anytime that you do not have enough taxes withheld per each quarter. Wages for most people makes up the majority of the quarterly amounts, but you must include other types of income such as what you have included above.

You can avoid an underpayment penalty for next tax year by completing the estimated tax section and paying quarterly, or complete a new W-4 form withholding more taxes, then give to your employer. 

See How does TurboTax calculate my estimated tax payments? for how estimated taxes are calculated and what you as a highly compensated employee should look out for. 


 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"