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Get your taxes done using TurboTax
Estimated payments* must "match" income timing. Making only one estimated payment in December means you were late paying estimated tax on the first 3 quarters income. The December payment will not eliminate the penalty, but it will reduce it. Because of the timing issue, you want to use the "annualized" method to calculate the penalty on form 2210. TT will give you the chance to select that option.
*Withholding (but not estimated payments) is treated as being timely, regardless of when paid. So, it would have been possible to have had your employer withhold additional money from your pay in December and avoid the penalty.
May 6, 2021
4:08 AM
541 Views