Because you did not pay estimated taxes for your retirement income. Did you enter any tax withholding from your 1099-R? The IRS levies underpayment penalties if you don't withhold or pay enough tax on income received during each quarter. Even if you paid your tax bill in full by the April deadline or are getting a refund, you may still get an underpayment penalty.
For federal underpayment penalties, you can visit that section of TurboTax. Search for penalty, and use the jump to link, to reduce or possible eliminate the penalty. You can annualize your income or apply for a waiver. Underpayment penalties
Each state return has its own penalty section in Other Tax Situations at the end of the state interview where you can possibly reduce or eliminate the penalty incurred.
Oregon Underpayment penalties -
- 5 Percent Failure-to-Pay Penalty: This penalty is added to an account when a tax has not been paid by the due date (ORS 314.400, 321.560).
To request a waiver directly from the State of Oregon, visit Oregon Dept of Revenue
[Edited 03/27/24 | 1:27pm PST] @JiminOregon
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
