I paid my tax last year under 1000$. This year I owe 475$ why is TurboTax charging me 20$ underpayment fee? How do I correct it?

[ThomasM125]

When you said you paid taxes under $1,000 last year, I believe you mean when you filed your tax return the amount due was under $1,000. However, the penalty for late payment of tax would be based on what your income tax was in the previous year, which would have nothing to do with what you owed when you filed your tax return.

In general, you need to pay in 100% of your tax for the previous year on a quarterly basis or 90% of your tax for the current year to avoid a penalty for late payment of tax.