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Level 2
posted Apr 15, 2019 5:24:03 PM

2019 tax estimate & tax penalties

our total tax for 2018 was more than 82K. But turbotax printed out 1040-ES vouchers for 2019 and each of them is only around $6745 - this kind of looks low - how did it calculate it?

Also we had a large 1099 income that was earned in 4th quarter. we did pay estimated taxes in Jan 15, 2019. However both federal and state slapped us with penalties (subtracted it from our refunds)  saying we didn't pay enough estimated taxes throughout the year (it annualized the income). Is there anything that can be done to get the penalties reversed?

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1 Replies
Level 15
Apr 16, 2019 7:21:20 AM

go to form 2210ai and it calculates the penalty to reflect that your imcome was 'lumpy'  

 

complete each COLUMN one at a time and look closely at the dates at the top of the form to assess how much your income was during each period. 

 

if you need to pay quarterly, you don't have go use what is on the voucher, but can write in another number