DavidD66
Expert Alumni

Get your taxes done using TurboTax

Underpayment penalties are very common.  The IRS interest rate on underpayments is currently 8%.  It increased from 7% beginning with the fourth quarter of 2023.  TurboTax only prints the forms and schedules that are transmitted to the IRS.  Form 2210 will be be filed unless you are requesting a waiver of the penalty or your penalty is reduced or eliminated by annualizing your income because it varied during the year.  

 

You may want to adjust your withholding to make sure you don't have an underpayment penalty in the future.  I recommend you use one, or both of the following tools to determine the correct amount to have withheld and adjust your W-4.  It won't be any help for 2024 taxes, but it can prevent you from owing any tax on your 2025 return.  

 

TurboTax W-4 Calculator 2024

 

IRS Tax Withholding Estimator

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