My total federal tax withholding from my employer last year (2019) was about 35K. I sold some long term RSU last year in May and it seems to have incurred over 30K of additional withholding from long term gain. The RSUs that I sold were vested over 4 years before and each time on vesting date, some shares were automatically sold to cover taxes. However, this year I owe a $450 underpayment penalty.
I paid a $80 underpayment penalty for 2019 because my federal tax withholding was insufficient. That was my very first underpayment penalty.
-Is this $450 penalty expected for my 2020 scenario?
-Is there any possibility of reducing or waiving the penalty?
Appreciate any help. Thanks.
