Underpayment tax penalty

I filed 2021 taxes using TurboTax form 1040. I ended up owing $5,800 (line 37) and paid this amount in Feb 2022. For line 38, I was given the option to either calculate the estimated tax penalty OR leave line 38 blank and the IRS would calculate the penalty and send me a tax bill. I chose the 2nd option. It has been 9 months and I have still not received a tax bill from the IRS. I have logged on to the IRS.gov website which shows no tax due. Is there something else that I need to do to pay this tax penalty? I would like to have 2021 taxes all wrapped up before filing my 2022 tax return.

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Employee Tax Expert

Nov 16, 2022 2:25:15 PM

There are two main reasons you may not have an underpayment penalty:

1. your withholding and estimated tax payments in 2021 exceeded 100% of your 2020 liability or

2. you paid at least 90% of your tax due for 2021 through withholding and estimated tax payments.

When you fall into one of these "Safe Harbors", there is no underpayment penalty imposed.

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Underpayment tax penalty