Thanks. Yes, I am aware of the IRS's requirements on withholding. Believe it or not, I am 74 years old and have never filed estimated tax returns. When I was working all my income was W-2 and was withheld by my employers. Since I have been retired I have continued not to file quarterly estimated tax payments and was mostly happy to pay underpayment penalties of a couple of hundred dollars at the end of the year to avoid having to file multiple tax returns. But this year the penalty was over $1,000 because of the December RMD's.
The reason for my posting was to point out that the TurboTax program was not working property. When I went back to my return and re-did the part that dealt with the underpayment penalty and went to all the trouble of annualizing capital gains (long and short term), qualified dividends and my ordinary income into the three mandated periods. I was dismayed to learn that TurboTax was still showing the same penalty. As I said in my original post, this was apparently because the new data that I input to annualize my income was not being carried from the interview onto the tax forms. When I did this manually, I got a quite different result and saved myself about $600. THE PROGRAM IS NOT WORKING PROPERLY AND SOMEONE AT TURBOTAX SHOULD LOOK INTO THIS.
