Employer marked me as exempt last year without me realizing, now im really scared.

[BettaTitanic]

Apparently for 2019, my employer had me marked as excempt from federal taxes on my W4 since February 2019. I never even submitted a W4 with that checked off, so I'm really upset with them. For 2018 I had no tax liability and got everything back since it was my first year working, but because of the exception in 2019, I owed $316. I didn't realize any of this until I got my W2 in the mail this January. I updated my W4 the next day and filed the taxes and paid the amount due, but I read there could be a $500 fine for incorrectly claiming excempt. Since I already corrected everything, is anything likely going to come from this? Am I going to get penalized the $500? Thank you in advance, I've been worried sick ever since i discovered this problem. 

[Critter]

This is not a big deal ... just pay the taxes owed by 4/15 and rest easy.  

[sosteen17]

Since this is the first time-no I really have never experienced any fines for owing taxes 

[fanfare]

Always print a copy of your completed tax return for your records, and review it carefully before e-Filing.
You will need it if you are audited by the IRS, or to amend because a TurboTax update changes your return.

OR, to observe whether any penalty for under-withholding was applied.

Since you had no liability the prior year, you won't get penalized for 2019 and 1040 Line 24 should be zero.

[BettaTitanic]

Am I likely to get audited? I claimed no deductions other than the standard.

[Critter · Accepted solution]

You are fine ... although a penalty can be applied the odds of them doing so are next to nil.   Just file and pay on time. 

[BettaTitanic]

Thank you... I did have $77 withhold in total for 2019. I'm assuming the low chance of a penalty is because I owe such a small amount? @Critter 

[Critter]

The IRS has much bigger fish to fry ... just don't do it again.

[fanfare]

because (you said) you had no tax liability last year, you won't be penalized this year. It doesn't matter how much income you had in 2019.