How Form 2220 Reduced 2023-2024

Hi guys, welcome back to the channel. Guess what? I got a letter from the IRS in the mail. It says, and I quote, "You have underpaid your taxes for the year and you're getting an underpayment tax penalty of $120.95." Okay guys, I do my own taxes with H&R Block tax cut and I have been using it for several years, so I'm pretty familiar with it. Every now and then, it asks if you want to pre-plan for the next year's taxes. Well, I never knew that the Tax Cuts and Jobs Act in 2018 changed the taxation system a lot. Because of these changes, they increased the standard deduction, so most people aren't itemizing anymore. I used to itemize all the time, but now we don't. Anyway, I noticed a dramatic increase in my taxes in 2018 and again last year in 2019. Now, if you underpaid your taxes, you have to pay this underpayment tax penalty. I have never seen it or dealt with it, so I decided to look it up and see what it says. Here's what it says: "Penalty for underpayment of estimated taxes. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller." I don't really know what that means, so I went to the IRS page and it basically says if you didn't pay enough tax throughout the year, either through withholding or estimated tax payments, you may have to pay a penalty. Most taxpayers avoid this penalty if they paid at least 90% of the tax for the current...