Last year I had a change in status to 'Retired'. I don't think I should owe a penalty for just $362 of underpayment?

[marvraab]

Should owe a penalty for just $362 of underpayment when I had a change in status?

[xmasbaby0]

Not sure what you mean.   "Retired" is not a filing status.   You only enter "retired" as an "occupation" if you want to use it;   the IRS does not use your occupation in any way that affects your tax due or refund.

[Vanessa A]

Yes.  You can still owe a penalty when you  have an underpayment due to change in status.  However, you can  request to have the penalty waived if the underpayment was due to a reasonable cause.

" If you have an underpayment, all or part of the penalty for that underpayment will be waived if th...

The underpayment may also be avoided if:

• You paid 90% of the tax that you owe for the current year.
• If the current taxes paid are equal to 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.. 

For more information, see, Guide to IRS Tax Penalties: How to Avoid or Reduce Them.

 To do this in TurboTax you will select the following:

1. Federal
2. Other Tax Situations
3. Underpayment Penalty
4. Answer the questions and follow the instructions to determine if you can get a waiver from the penalty.