I'm not sure what I did in 2024 that would generate the 502 UP underpayment in 2023. In 2024, my job took a turn, I worked 9 mons due to 3 of unemployment months. Of the nine month, Six of the nine months was earning minimum wage which is less than what I used to make in my real job, the other three was unemployed. The entire income dropped significantly to minimum wage. Yet I am told that I owe $1078+ interest to which I went ahead and pay since it is deadline to file 2024 and I did not want to be fine. After the filing, It generated another set of 502-UP form for next year 2025 with a quarterly of $338. The job I am doing now pays much less then what I used to earn in 2023 and prior and part of 2024 (3 month). My deduction has always been 0. So why am I owed tax and underpay? I am very confused. Can someone please help me explain what cause this? My deduction has always been the same year after year - single '0'. how is it that I am underpaying my tax when I pay each timeI do my tax, I would either get a refund from years past or pay when I owe a small change. This time it is significant and underpay. Please help.
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First, double check your entries to be sure that you entered the correct amounts for the state income and withholdings. Double check the commas and decimal points as well. If all entries are correct, then you would need to figure out if your employer did withhold taxes.
When you were working at the minimum wage job were they taking taxes out for you? If not, then you would have had the underpayment.
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