Underpayment Penalty

[Bright_Star]

I just started doing my federal taxes. I use H&R Block onlne. It looks like I'm going to end up owing the government $100 PLUS an underpayment penalty!!
Last year they started taking out less federal taxes from paychecks so people could have a little more take-home pay in their paychecks. This was capped at at a max of $400 for single filers & $800 for couples. So you'd think this would be reflected in tax prep software but not so!
Someone at work says I should change my W-4 form but I don't see how I could change it cause I claim a big fat "ZERO"!!
I don't see how I owe at all. I made LESS this year then I did last year. So if I do have to pay then I'll wait till just before April 15.
I haven't filed yet cause something tells me to wait.

[MaggieTheCat]

I don't know anything about taxes, but I did read Lupo's recent post about tax questions and Taxguykarl was able to help her out. He seems to be the resident CS tax expert so he can hopefully explain what's going on. Good luck!

[HYHYBT]

The W-4 has a space on it for how much extra you want them to take out above what's calculated based on dependents and such.

But a penalty for owing only $100? That doesn't sound right.

[Bright_Star]

The W-4 has a space on it for how much extra you want them to take out above what's calculated based on dependents and such.

But a penalty for owing only $100? That doesn't sound right.

It doesn't feel right either.

[taxguykarl]

I've never heard of a penalty for owing $100--$1000 but not $100. Do check with the tech support--something does not see right here. I agree with a new W4 to avoid this next year.
Yes, you can also PM me with details.

[AccountingDrone]

I know I am not looking forward to taxes this year ... I got the inheritance from my dad, and apparently since some of it was from the sale of stocks, and the stock market had issues, I can deduct some vague amount that was lost .... I have the paperwork. I think this year we are going to a professional tax preparation service. I really don't want to screw it up!

[blas]

I was penalized a couple of years ago because I claim "1" (meaning they take less out for taxes every check but I ultimately get less back at tax time).....somehow the numbers didn't add up right or I shouldn't have done that, because I owed the Feds a couple hundred smackeroos and didn't get anything but my State back

Yet last year, once I started claiming the $7200 I pay in rent every year, I was eligible for something regarding renting, and I didn't get punished!

[CaptainJaneway]

I had to pay the Feds money too last year. I did not take out enough money out of my pay checks because of my two jobs. Even though I did claim zero on both jobs.

So this year I took out extra and I am getting a refund.

[protege]

Bright_Star, did you download the latest updates for the program? Sometimes, that can make a difference.

Could be worse though. I once worked for a company called Guildford. Those idiots decided that taking out taxes...would have been too much trouble. Meaning, I owed about a grand total Bastards.