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The underpayment penalty is owed when a taxpayer underpays the estimated taxes or makes uneven payments during the tax year that result in a net underpayment.
You may avoid the Underpayment of Estimated Tax by Individuals 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.
IRS Form 2210 (Underpayment of Estimated Tax by Individuals, Estates, and Trusts) calculates the underpayment penalty if you didn't withhold or pay enough taxes during the tax year.
We'll automatically generate a Form 2210 if your return needs it. Or you can revisit this section:
Note: You'll need your prior year tax return to answer the questions.
you don't see it on the website it's on line 38 of your 2021 form 1040
here's a link to form 2210 instructions. start on page 2 under waiver of penalty to see if you qualify
https://www.irs.gov/pub/irs-pdf/i2210.pdf
to avoid the penalty for 2022 withholding and timely estimated tax payments need to be the lesser of 90% of your 2022 tax or 100% of your 2021 tax (110% if your 2021 AGI was over $150k)
estimates are due 4/18,6/15,9/15, 1/17/2023
Turbotax should have generated forms 1040ES to make these payments by mail
or you can register at the IRS website to use Direct Pay (electronic transfer - no forms sent) which allows you select to use a bank a/c (free) or debit or credit cards (there's a fee)
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