Vic M
Returning Member

Get your taxes done using TurboTax

Thanks for replying with such detail. It sure is a PIA.  The IRS should reword their underpayment text to indicate that each QTR must be met to avoid penalty for the 100% prior year paid avoidance. Currently it just says:

"You may avoid the Underpayment of Estimated Tax by Individuals Penalty if:

  • Your filed tax return shows you owe less than $1,000 or
  • You paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less. If your adjusted gross income (AGI) for 2023 was more than $150,000 ($75,000 if your filing status for 2024 is married filing separately), substitute 110% for 100%.

Nothing there about each QTR which would have made me do things differently, had I    understood what your reply states. Thank again.