Underpayment Penalty

Forum|Forum|2 years ago
January 13, 2024
1 reply
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I took a look at my wife's W2 and realized that there was very little if anything taken out of her checks and so as I've started to work through Turbotax and input the information It's showing that I will be hit with the Underpayment Penalty. We are filling Married Filling jointly so I guess I have a couple questions: First should I just complete my taxes via Turbotax and wait for the IRS to send us a bill on underpayment penalty or is there a way to calculate that amount and secondly, would the penalty be on my portion of the income or just on my wife's portion because not enough taxes were taken out on hers?

FYI....This is approximately 10,000 in income, which I believe only 27 dollar of it got withheld from federal.

dmertz

Level 15

TurboTax allows you to choose to have TurboTax calculate an estimated penalty and include that amount in your balance due or you can elect to not include that in your balance due and have the IRS just bill for the penalty.

On a joint tax return paying taxes is a joint responsibility, so there is joint responsibility for any underpayment. There is no separate accounting for tax liability. Tax withholding by either spouse is credited against the joint tax liability.

xmasbaby0

Level 15

Going forward, your spouse could change her W-4 and have more withheld from her paychecks to avoid this situation for tax time next year.

https://www.irs.gov/individuals/tax-withholding-estimator

https://www.irs.gov/pub/irs-pdf/fw4.pdf

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**