When you don't have enough tax withholding and you don't make any estimated tax payments during the year, then the IRS or your state can charge you with an underpayment penalty.
There are some exceptions to this penalty that you may qualify for if you meet any of these requirements:
- You paid in 85% of your 2018 tax liability (Divide Line 16 by Line 15 of your Form 1040)
- You paid in 100% of your 2017 tax liability during 2018 (or 110% if your AGI is over $150,00)
To visit the section where you can go through possible
exceptions to the penalty, follow these steps:
- Login to your return and click "Take Me To My Return"
- Click "Search" in the upper right corner of your screen, then type "underpayment penalty" in the Search Box and click "Find"
- Click the "Jump To" Link
- From here, you can review the underpayment penalty and work through the possible exceptions
