Mike9241
Level 15
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Evidently your employer did not take out enough withholding to cover all the taxes on additional income from the vesting.

 

I doubt you have reasonable cause. you can try  these options to see if your penalty is lower

 

1) annualized income page 3 of 2210

2) actual withholding for each period rather than the default of 25%

3) both 1 and 2

 

the simplest way to avoid penalties for 2024 is to have your withholding equal 100% of your 2023 tax. it's 110% if your 2023 adjusted gross income is over $150K

 

There are other ways such as withholding equal to 90% of your 2024 tax but you don't know this until you complete the 2024 return

 

 

 

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