After you file

Changing Marital Status will change your tax obligation, but if you owed a penalty in 2022 it would be included on the 2022 tax return.

Why do you think this is a 2022 penalty, and not for 2023?

Please check your 2023 tax return.

You can preview your tax return by going to:

1. On the menu bar on the left that shows.
2. Select Tax Tools
3. On the drop-down select Tools
4. On the popup menu
5. Select View Tax Summary
6. On the left sidebar
7. Select Preview my 1040.
8. Schedules 1,2&3 are included if you scroll down past your 1040.
9. To return to the entry screens press Back on the sidebar.

Some key numbers on your 1040 tax return are:

Line 37 - Tax owed.

Line 38 - Penalty for 2023

The underpayment penalty will be assessed if any of these apply:

"If you don’t pay enough tax through withholding and estimated tax payments, you may have to pay a penalty." 

"You also may have to pay a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return."

Estimated taxes

• The amount of tax you paid during the tax year is less than 90% of the tax that you owed for the current year. 
• The amount you paid during the tax year did not equal 100%, (110% for higher incomes) of your taxes owed the prior year. 
• The IRS also says you can probably avoid the penalty if the amount you owe is less than $1,000, after subtracting withholding and refundable credits.

"Typically, underpayment penalties are 5% of the underpaid amount, and they're capped at 25%. Underpaid taxes also accrue interest at a rate that the IRS sets annually."

To avoid this situation it is recommended that you adjust your W-4 with your employer or pay estimated taxes.

Underpayment of Estimated Tax by Individuals Penalty

Please contact us again with any questions, and provide some additional details.