Greetings,
I have some unplanned 4th 1/4 expenses coming up, which must be paid for out of my IRA. This will cause my estimated tax payments for the 1st 3 quarters to be lower than they should have been. I understand that form 2210 can take care of this. My question is more to do with how to avoid triggering the 2210.
It is my understanding that as long as my Fed tax owed (after subtracting out the quarterly payments) is under $1000 there will be no penalty. So, with no penalty, is the 2210 still needed, or is that processed whenever there is underpayment regardless of the amount?
Should I even care? If Turbotax processes the 2210 without any work on my part then perhaps I should be concerned about it.
Also there would be underpayment of state estimated taxes and under the $500 threshold for penalties. Does TT handle state underpayment forms for CA. I believe it is form 5805.
Main thing I want to avoid is having to put together information showing how much was received in each 1/4. My brokerage doesn't provide the timing of distributions on their 1099s. I will not have documentation to show when income was received.
Thanks!
