IRS Penalty on 4Q Roth Conversion

[murtrie227]

In Nov 2023, I withdrew $80k from my 401-k (and put it into my Roth IRA).  I immediately paid an Estimated Tax of $15k on the IRS website (about right for my tax bracket).   The IRS assumed I received the $80k evenly over the entire year and penalized me for not paying quarterly taxes in 1Q, 2Q, and 3Q.  TurboTax never asked me when I did this conversion.   Where in TurboTax can I show the date of the $80k Conversion?

I did the same exact thing this tax season, and don't want to get penalized by the IRS again....

[VolvoGirl]

You might be able to eliminate it or at least reduce it.  You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you.  It's form 2210.

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

[murtrie227]

What I did was correct.  When I showed the IRS proof that my withdrawal was in 4Q, they rescinded the penalty.  I am worried that the IRS will penalize me again this tax season.  Where in TurboTax can I show that my withdrawal was in 4Q?

[KeshaH]

In the underpayment penalty section that @VolvoGirl mentioned above, you can annualize your income to show that you received the $80k in Q4.