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Assumptions (Normal w2 job, index fund investments with dividends but no taxes witheld no other weird financial products), For FY23, I had $56,472 owed and $47,392 paid thus requiring having to pay $9,255 at tax time (includes the $175 penalty as calculated as a percentage of the underpayment for not having 90% taxes paid). But i got a check in the mail from the IRS with the $175 overpayment.

The penalty was automatically added with Turbotax since it determined I needed to pay it. Any stipulation that I/it missed to make the penalty not apply to me?

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    What were your taxes the year before? There is a 100% or 110% safe harbor when compared with the previous year. Commented Apr 23 at 17:26
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    How much was your previous year's tax? I believe_/_suspect having paid 100% of the previous year's tax will escape a penalty.
    – TripeHound
    Commented Apr 23 at 17:33
  • FY22 was Owed 43278 and paid 38201 and ended up paying a 30 dollar penalty but i didn't get that penalty refunded last year.
    – PHV
    Commented Apr 23 at 17:42
  • Do you know if you need to meet the 100% or the 110% safe harbor? You need to meet the 110% safe harbor if your adjusted gross income (AGI) for 2022 was more than $150,000 ($75,000 if your 2022 filing status was married filing separately). Otherwise you need to meet the 100% safe harbor.
    – xuhdev
    Commented Apr 23 at 21:39
  • Yeah i checked all those numbers, i don't qualify for the safe habor, where i live wasn't in a disaster zone and i'm not a fisherman/farmer.
    – PHV
    Commented Apr 23 at 22:26

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For FY23, i ha 56472 owed and 47392 paid thus requiring having to pay 9255 at tax time (includes the 175 penalty as calculated as a percentage of the underpayment for not having 90% taxes paid). But i got a check in the mail from the irs with the 175 overpayment.

from the comments:

Q: What were your taxes the year before? There is a 100% or 110% safe harbor when compared with the previous year.

A: Owed 43278 and paid 38201 and ended up paying a 30 dollar penalty but i didn't get that refunded last year

The previous year you were responsible for $43,278. The 110% safe harbor goal would be $47,605.80. It appears that you just missed the 110% safe harbor goal by $214.

If your AGI the previous year was less than $150,000 then you would use the 100% safe harbor, which you easily met.

I would check that the correct numbers for last year were used by the tax software.

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  • Yeah this is weird, i double check the numbers are the seem to be correct and i don't see my area listed on a disaster declared area for relief.
    – PHV
    Commented Apr 23 at 18:46
  • I checked my Tax Transcripts and it has these 2 codes if it helps. 971 Notice issued 03-11-2024 $0.00 846 Refund issued 03-01-2024 $175.00
    – PHV
    Commented Apr 26 at 7:38

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