<prompt> Human: So last year I owed nothing but I was also making less money, so I was able to deduct student loan interest a whopping 6k. This year I wound up making more money and now that student loan interest isnt applicable - something I didnt know. I also kept my allowances at 5 because last year I actually got a refund, so I thought I would at least break even this year. As it turns out, I have no deductibles this year because even medical bills arent enough. So I owe 6k federal and state together - and I just found out, as in a few hours ago. I am worried about penalties, something else I didnt know about. How much should I expect for penalties? I intend to use a credit card to pay for this since I am lucky enough to have one that is low interest until October. I also dont want to pay the IRS anything else this year in the form of added interest on top of what I owe - so a payment plan with them is not ideal. But, my biggest concern is stopping this madness from occurring again next year. What can I do? The most I can lower my allowances is 3 and even then I would be struggling to make rent and student loan payments which will increase in October because I made more money this year. I am having a hard time calculating estimated taxes so that maybe I can start paying them now quarterly, but is there anything else I can do?Thank you!  <response>: The most you can lower your allowances to is zero. You are conflating two unrelated problems: improper withholding and fact that your budget is not working. You need to post your income and all expenses and we can help cut the fat. 