Question

Hello, is my underpayment of 2020 taxes determined by the amount I decreased witholdings for in 2020?

Why is my underpayment penalty higher than the calculated 2020 taxes that were witheld on my W4?

No, the underpayment penalty is calculated if you do not have enough withheld in income taxes throughout the year as you earn your income.

It has nothing to do with what list as decreased withholdings on your W-4 form.

You can try to reduce your underpayment penalty by following the tip at the bottom of the link below.

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