Cindy4
Employee Tax Expert

Get your taxes done using TurboTax

The underpayment penalty is 7% for underpayments (taxes owed but not fully paid).  The IRS considers the tax system as a 'pay-as-you-go' system, so the payments are calculated by quarter.   To avoid underpaying, you can either adjust W-2 withholdings or pay estimated quarterly taxes here.

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Hope this helps!

Cindy

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