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tim36272 t1_j6bnuv3 wrote

Reply to comment by tn69c1935 in LPT Request: Why is my tax return so low? by ChickenCheeks7

Yes that's better, but you can only really do that if you're making substantially more money every year. There is a penalty for underpaying, so you're risking a penalty if you underpay by too much.

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love_that_fishing t1_j6dfz4o wrote

I purposely owe 3-4k a year. It’s never been a problem. I’m not sure where the cutoff is but that amount has been fine.

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wilderop t1_j6hwe8a wrote

The tax software doesn't highlight the penalty. Do you read through your entire return before submitting? You may be paying a penalty each year without knowing.

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love_that_fishing t1_j6j24an wrote

Yes i print out the entire return and review It. Have not been paying a penalty. They also may look at percentages. I pay 50k in federal taxes on average so being short 3k is not a large percentage.

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