Penalties

Forum|Forum|2 years ago
April 1, 2024
2 replies
4 views

I underpaid federal taxes by 19.25%. does this create a penalty?

Tax liability $32,762

withheld 26,455

owe $6,307

penalty, $156

ThomasM125

Level 15

Since you owe more than $1,000 in taxes, it is possible you will have a penalty for late payment of tax.

You can go through the Underpayment penalties section which you will find in the Other Tax Situations menu to see if you can reduce your late payment of tax penalty. In that section, you enter your tax liability and associated withholdings and estimated taxes by quarter. That may allow you to reduce or avoid a penalty, especially if your income varied greatly by quarter.

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Mike9241

Level 15

two other rules

in your situation, your withholding was not equal or more than 90% of your 2023 tax - penalties would apply unless the next rule is met. 2023 withholding is 100% of your 2022 tax. The 100% rises to 110% if your 2022 adjusted gross income was over $150,000

Mike9241