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New Member
posted Feb 10, 2023 2:24:15 PM

Can I get an exception for payment penalty on tax paid only 4th qtr estimate due to a Dec 30th IRA rollover to Roth that required tax be due for 2022 for WI ? f

I shouldn't have to pay a penalty for tax paid on Jan 5th for the year as an estimate when the only reason the tax was due was for a Dec 30, IRA draw to roll over to Roth and put me over the to have tax due of more than  Last years tax liability

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1 Replies
Expert Alumni
Feb 10, 2023 4:25:51 PM

You can annualize your income on the penalty form (Form 2210) to reduce or eliminate your penalty.

 

With annualization, you divide your income into four periods and your fourth quarter payment offsets your Roth conversion.

 

To annualize your penalty:

 

  1. Type “underpayment of taxes” in Search in the top right
  2. Select “Jump to underpayment of taxes”
  3. Continue to “Annualized Income Method,” say Yes and follow the screens