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Get your taxes done using TurboTax
Not necessarily. The underpayment penalty is calculated if you do not have enough withheld in income taxes throughout the year as you earn your income.
You can try to reduce your underpayment penalty by following the tip at the bottom of the link below to annualized your tax. Essentially, if you enter that you had no income for the first 5 months, your underpayment penalty would be reduced or potentially eliminated as you did not earn any income during the beginning of the year.
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‎February 21, 2021
11:01 AM