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Underpayment penalty safe harbor
Used TT Premier for my 2018 returns. It was an unusual year because we sold property that produced a big taxable gain. Total tax was $40,247 and TT had us make four estimated payments for 2019 of $723 each which we paid when due. Now on our 2019 returns, our tax is $6,245 less our estimated payments of $2,892 for a balance due of $3,446. BUT, TT estimates we owe an underpayment penalty of $93. Should the estimated payments that TT had us make avoid any penalty? (Our 2018 TT instructions say " if you do not make these four estimated tax payments, you may incur underpayment penalties" leading me to believe if we do make them we will not incur penalties).
March 17, 2020
11:29 AM