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.
If I withheld $7k in federal taxes in 2019, do I still owe the underpayment penalty if I withheld $7k in 2018 and had a tax return in 2018 of $3k? I didn't file 2018 tax return with Turbotax so I am not sure if Turbotax has checked my 2018 tax return.
