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Get your taxes done using TurboTax
No. Unfortunately, there is not an exception to the estimated tax penalty other than calculating annualized gross income for the first three quarters of the year.
The law does allows the IRS to waive the penalty if:
- You didn't make a required payment because of a casualty event, disaster, or other unusual circumstance and it would be inequitable to impose the penalty, or
- You retired (after reaching age 62) or became disabled during the tax year or in the preceding tax year for which you should have made estimated payments, and the underpayment was due to reasonable cause and not willful neglect.
Also, you may waive the penalty if you go to:
- Federal
- Other Tax Situations
- Additional Tax Payments
- Underpayment Penalties
As you scroll through the screens, you will reach a screen that looks like this screenshot. If you can answer all three questions, you may be able to waive the penalty.
Penalty for Underpayment of Taxes
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‎February 29, 2024
5:02 PM
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