I don't believe I should have a penalty for 2 reasons:
1. I owed and paid $14,000 in FIT in 2020. I owe $20,890 in 2021. I had $11,586 withheld in 2021 plus I paid $9,340 in estimated taxes for a total of $20,926, yet TT says I owe a underpayment penalty.
IRS says: "To avoid an underpayment penalty, individuals must pay either 100% of last year's tax or 90% of this year's tax". I have done both. If timing is an issue, see item #2.
So, why the penalty and how do I correct it in TT?
2. I did a $50,000 Roth conversion on 12/15/21 and paid the tax on it on 12/22/21. Otherwise our income and withholding was steady throughout the year. If I paid the tax on the conversion in the same month and the conversion, why am I getting a penalty?
Please advise, Thanks!
