Hello,
I am trying to avoid the underpayment penalty for 2021 by paying 100% (110%) of my 2020 tax. This is known as the prior-year exception. Based on my research, the tax amount on line 24 of form 1040 should not be reduced by the 2020 tax SE deferral as suggested by Turbo Tax to determine the prior-year exception amount.
As you suggested, I am going to override the 2021 estimate amount suggested by Turbo Tax by adding back the amount on line 26 of form SE-T.
My tax liability for 2021 should be significantly higher than my taxes for 2020 and I want to be 100% certain I am within the prior-year exception.
