SteamTrain
Level 15
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State tax filing

For $12 it's not worth the effort to fill in the special forms that might get it reversed (a form 2210AI).

 

You paid 5,000 in the 4th qtr, suggesting you had some extra year-end income.

The initial default calculations assume all income is received evenly over the eyar....doing this is usually OK for 90% of the situations. But with some folks, especially those with extra year-end income, the default calculation spreads out that income to the first 3 qtrs...and that can result in underpayment for those Qtrs.

 

The normal fix (if you Really want to attempt it) is to go thru the Underpayment Penalty section Q&A on the Other Tax Situations page, and closely define exactly what income you had each quarter during the year....withholding, deductions, interest, dividends, Cap gains etc.

 

(and note the dates of the so-called Qtrs....3mos,2mos,3mos,4mos)

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...I've done it once and won't bother again for a penalty less than ~$50 or so.

 

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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