MayaD
Expert Alumni

Get your taxes done using TurboTax

You probably don't have enough taxes withheld from your paychecks. The amount of tax withheld from your paycheck depends on what you earn each pay period, and, what information you gave your employer on Form W-4 when you started working. 

Check your withholding often and adjust it when your situation changes. You can increase your withholding by filling out a new Form W-4 and giving it to your employer.

 

Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.

Underpayment of estimated tax by individuals penalty


 

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