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Avoiding penalty for underpayment of taxes
As a retiree, I find it necessary to make estimated tax payments. I do so 4 times each year after reviewing my income each quarter and remit the necessary payment to the IRS. At the fourth quarter of the tax year, I determine how large an IRA withdrawal I can make without exceeding the IRMAA threshold which would generate a loss of future social security benefits via a Medicare penalty. However, the TT software does not realize my income and estimated tax payments were done accurately for the first three quarters and the big increase in my income was the result of the IRA w/d in late December which I covered the tax liability on January 15th with my 4th quarter estimated tax payment. The TT program assumes I did not pay correctly across the entire year and hits me with a penalty for underpayment of estimated taxes because it appears I am playing catch-up on the final payment for the tax year. Where in the Form 1040 TT program while I am doing my taxes can I address this issue to avoid the TT program calculating an estimated penalty for underpayment? Thanks so much for some help.