so Rogge, if at the end of my taxes, I would have had a bal due, the program would have used those Foreign credits up to the point of satisfying that balance that would have been owed.
Would like to ask you something else. This year I had to file pg 1 of 2210 underpayment of est. taxes. Don't know what the difference is because I've been filing this way for a while now with no problem. I know there is a penalty if you don't pay at least equal to last years taxes or 90% of this years. I have withholding from my pension and p/t job, but not from SSA. I appropriate that every quarter thru the estimated tax payments. Also in this process, I pay a percentage (that I have done the same for years) toward higher value savings accts and my p/t paycheck. Basically, I appropriate quarterly estimated taxes on most of my funds. The exception is div and interest for my brokerage acct. However that being said, every Dec end of the current year I tabulate all the actual div and interest thru Nov and pay the percentage I apply to all my quarterly payments. Currently I appropriate 13%. Then I estimate Dec based upon the previous years broker statement because in Dec, that is when everyone declares their capital gains in that acct. So basically, I calculate actual div and interest thru Nov and estimate Dec and pay 13% of that amount before the end of the current year. Been doing this for years and never had TT generate the form 2210. In fact this year, the amount I calculated was within 500.00 of the actual and I paid 13% on it. Now I saw for this year there was some type of waiver using 85% that was checked off. So now I am wondering if I am gonna be taxed the penalty. With my withholding and the estimated payments, I actually overpaid by 1100.00. So I am confused why I would even see a underpayment form. I got a refund. Admittedly my 4th quarter payment is the highest because of how I calculate (waiting to make 1 payment for that broker acct for all my div, int and cap gains, but I pay the tax. AGain, I am getting a refund. So I am worried about getting a penalty for 2018 and now wonder about '19. What am I doing wrong that a form was generated this year (after never having the underpayment form generated in any other year despite using the same process)? If I am doing something wrong, what might you suggest I do differently for '19 to avoid this form being processed again. Confused because if I actually appropriated the necessary funds to the IRS for the year and am getting a refund, why at all would this form ever be generated. I would not have underpaid my taxes so I would not expect a penalty. Hope you can help clarify this for me as well.
