I am helping my parents with their taxes. They pay estimated taxes throughout the year based on what their financial advisor tells them. In November 2024 they sold the large home they had lived in for 40 years, and owe tax on $126,000 of capital gains. They paid a large amount of estimated tax to cover this in their fourth quarter estimated tax payment, to the point where they are due a $5500 federal refund. However, TT has calculated a penalty payment for them which I don't think would apply since that money didn't come to them until late November and they didn't know they'd be selling their house until a month before that, hence they didn't make estimated tax payments to cover this until the sale went through.
Can we get rid of this penalty payment for both their federal and Virginia taxes?
Thank you.
