Question

what is an underpayment penalty??

Forum|Forum|1 year ago
March 11, 2025
1 reply
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I paid my taxes on time before April 15 why do I get an underpayment penalty?

TurboTax Deluxe Online

The underpayment penalty differs from a late-payment penalty (which is what you incur for payments made after April 15th.) Since the US tax system is a pay-as-you go system, taxpayers can be penalized for not making enough payments throughout the tax year via withholding or estimated payments.

Some taxpayers may reduce or eliminate these payments, particularly if their income isn't earned evenly throughout the year. You can learn more about this penalty, including how to see if you can reduce or remove it in TurboTax here: Why am I getting an underpayment penalty?

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