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February 16, 2021
Question

I'm getting a huge underpayment penalty but my employer withheld federal taxes each paycheck. Why?

  • February 16, 2021
  • 1 reply
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1 reply

February 16, 2021

You withholdings from your paycheck weren't enough to cover your tax liability. You'll need to adjust your W-4 to avoid the underpayment penalty in 2021. 

 

You can use the TurboTax withholdings calculator:

 

W-4 withholding calculator