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If you owed more than $1,000 in tax you are subject to a penalty.
That indicates there was a tax penalty.
The underpayment penalty will be assessed if any of these apply:
To avoid the under payment penalty:
"Typically, underpayment penalties are 5% of the underpaid amount, and they're capped at 25%.
Underpaid taxes also accrue interest at a rate that the IRS sets annually."
To avoid this situation it is recommended that you adjust your W-4 with your employer or pay estimated taxes.
Underpayment of Estimated Tax by Individuals Penalty
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