So the problem was that there was a penalty for not having enough money withheld. The information is further down the page. Nice design IRS!!!! This was an error since it assumes the money is earned at regular intervals when in fact most of the income comes in December. To fix this, you can annualize the withholding. In the step-by-step section, search for "insufficient withholding" or "annualize withholding" or "underpayment penalty". Follow the link which appears as the first entry in a list of entries and then follow the instructions. This eliminated by state tax penalty and reduced the federal penalty by $50 to $25 from $75. Taxpayers beware. Estimated tax and withholding are not counted the same. I did pay the correct additional tax based on the December earnings in time but the IRS did not really give a hoot. All they cared about was the amount withheld. So next year, I will have sufficient funds withheld to avoid this hassle completely. BTW, this is the first time this happened and the only difference is the new bogus tax law put in place in 2017 but taking full effect this year.
