If you are being asked to pay an underpayment penalty, it is because you are not having enough withheld. This means, you would need to contact your Pension Administrator to request more money withheld or if you are getting SS, you can have taxes withheld from your SS check.
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 2022
- You paid 100% of your 2022 tax liability
- You paid 90% of your 2023 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
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