If you are seeing a penalty, you can go back into the program under Other Tax Situations>>Additional Tax Payments>>Underpayment penalties and select start or update next to Underpayment Penalties. These questions are meant to help you apply for the exemption to the penalties.
Some exceptions to the penalty are
- You had $0 tax liability in 2023
- You paid 100% of your 2023 tax liability
- You paid 90% of your 2024 tax liability
- You or your spouse (if you file a joint return) retired in the past 2 years after reaching age 62 or became disabled and you had reasonable cause to underpay or pay your estimated tax late
If you paid 100% of last years tax liability on line 24 of your form 1040 for 2023, then you would be able to be exempt from the penalty. For next year, since it is hard to predict your income, you can pay 100% of 2024's liability (or 110% if you make more than $150,000, unless you are married filing separately than you would need to pay 100% if you make more than $75,000) to be able to claim the waiver from the penalty.
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