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Credit for RMD taxes paid to avoid Penalty
We are using Business TT for a Disability Trust. The trust took an RMD in January and taxes were paid when the RMD was paid. TT is calculating a penalty for underpayment of estimated taxes because it allocated the Trust and RMD income across the entire year. No estimated taxes were paid in January, although taxes were withheld through the RMD . I'm trying to figure out Form 2210 and I cannot find a way to get credit for taxes withheld in January through the RMD so I can avoid the penalty. Form 2210 just assumes the taxes withheld were in the year with no credit for the January withholding. How can I avoid this penalty and/or get credit for the January withholding. The RMD withholding is showing as a credit on taxes paid.
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‎February 6, 2024
8:32 AM