My business was dormant this year. Both my husband & I pay taxes through regular payroll deduction from our full time jobs. Why can't I remove the underpayment penalty?

You will have the penalty if:

• Your filed tax return shows you owe less than $1,000 or
• You paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less. If your adjusted gross income (AGI) for 2023 was more than $150,000 ($75,000 if your filing status for 2024 is married filing separately), substitute 110% for 100%.

Do either of these situations apply to you?