Thanks, I understand what underpayment is, I just don't know what/how I underpaid. I can see that I owe taxes for some capital gains/dividends/interest earnings, but that doesn't account for the total I'm being asked to pay. Does this mean not enough money was withheld from my normal paycheck?
You say I should complete a new w4 form withholding more taxes, but how would I know how much and why would I need to withhold more? Shouldn't my paycheck just be taxed at the correct rate? The capital gains/dividends/interest earnings totaled $13,354, but that didn't change my tax bracket or anything. So why would my paycheck not be taxed correctly?
I normally get a refund every year, so I'm confused by why I owe so much. I knew I would have to pay something for the stocks, but this amount doesn't add up.
