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Get your taxes done using TurboTax
Right, so I'm trying to figure out either how to minimize a penalty or avoid it completely. If I do this Roth conversion now, but haven't been paying estimated quarterly taxes, I'm trying to figure out (1) how large will the penalty be and (2) if it's large, if there are ways I can minimize it or eliminate it completely.
On (1), if the penalty is based on what I would have needed to pay quarterly to be in the 100% of previous year's tax safe harbor, it would be very small because I had a very small tax liability last year. If instead it's based on the say $10k I will owe this year in tax, my understanding is I could use form 2210 (schedule AI?) to make it clear that this income from the Roth conversion (which will be the vast majority of my income for the year) happened in Q4 and that is when I made a tax payment to cover that tax liability from the Roth conversion income.