To reduce or possibly even eliminate your underpayment penalty, search for annualizing your tax (use this exact phrase) in the search box.
This will take you to the underpayment penalty section, and we'll take you through the steps to possibly reduce your underpayment penalty.
When calculating your Annualized Income, don't include the one-time Capital Gains from selling your home.
If you paid appropriate estimated payments, you should not have a Penalty (or possibly, just for the one quarter).
Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.
Click this link for more info on Underpayment Penalties.
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