Due to sale of investment property and retirement income taxes paid in 2019 will be higher than what is owed in 2020. To avoid penalties we would be required to pay 110% of prior year 2019 taxes as quarterly estimates. By the third estimate we would have paid enough to cover our actual tax liability for 2020 although we will have some income in the fourth quarter. If we pay the fourth quarter estimate we will ultimate be refunded the entire fourth quarter payment plus some additional over payment. Is it necessary to make the fourth quarter estimate or will we receive a penalty for not having sent them 110% of the prior year’s taxes even though it was not owed? Most of our income will be received in the first quarter of 2020 so when we annualized and multiple the amount by 4 it grossly overestimates what our yearly income will be so using the prior year 110% estimated was more accurate. Thanks
