I'm being penalized for underpayment of estimated taxes. I don't have taxes taken out from my social security. Can this be the reason?

My husband and I have taxes deducted through our employers. We do not pay estimated taxes. Why would we have an underpayment penalty?

posted

Yes.

Your SS income with no tax withheld could be the reason for the underpayment penalty.

If you have wages, you could fill out a new form W-4, asking for an additional withholding amount on each paycheck by filling in an amount in Step 4 c.

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Is there some way to eliminate the entry for underpayment of estimated taxes. i am not required to do that and never opted to enroll in such a program.

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I'm being penalized for underpayment of estimated taxes. I don't have taxes taken out from my social security. Can this be the reason?