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From your post, it appears that you were required to pay estimated taxes although your income decreased substantially. The U.S. tax system operates as a pay-as-you-go system. What this means is that you must pay your taxes as they occur or you will be assessed an underpayment penalty.
Your tax owed was greater than estimated tax paid. If you are self employed you have to pay self employment tax even if your regular income tax is zero.
From your post, it appears that you were required to pay estimated taxes although your income decreased substantially. The U.S. tax system operates as a pay-as-you-go system. What this means is that you must pay your taxes as they occur or you will be assessed an underpayment penalty.
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