I retired in 2017 & paid est. taxes enough to cover my 2017 pension. I paid these through est, tax payments. Why do I have to pay an underpayment penalty?

ferddario · ‎June 6, 2019

Line 6 of form 2210 does not use the estimated payments to calculate the underpayment. This does not seem right. Especially since my income dropped significantly from 2016.

jtax · ‎June 6, 2019

The IRS instructions say not to include estimated taxes on line 6. Estimated payments are covered in Part IV on page 3 of From 2210.

What happens is the first part (with estimated payments) calculated how much you needed to pay in estimates. Then Part IV makes sure you paid them evenly each quarter.

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View solution in original post

jtax · ‎June 6, 2019

The IRS instructions say not to include estimated taxes on line 6. Estimated payments are covered in Part IV on page 3 of From 2210.

What happens is the first part (with estimated payments) calculated how much you needed to pay in estimates. Then Part IV makes sure you paid them evenly each quarter.

Does that help?

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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I retired in 2017 & paid est. taxes enough to cover my 2017 pension. I paid these through est, tax payments. Why do I have to pay an underpayment penalty?