KathrynG3
Expert Alumni

Get your taxes done using TurboTax

Yes, @SweetieJean and @VolvoGirl are correct. When a taxpayer has not paid in at least 100% of the prior year or 90% of the current year income tax, the IRS is allowed to charge penalties and interest for the amount under withheld.

 

You may want to adjust your withholding for 2021 for the federal and for any state taxes to make sure you have enough taxes taken out going forward. 

 

For other ideas, see: 7 Best Tips to Lower Your Tax Bill

How do I update my 2020 withholdings and print a new W-4?

 

@lharv124-comcast