Late payment penalty

As seniors we paid 45% of our 2023 tax bill with withholding in our RMD distribution. The other 55% was paid with one 4th quarter estimated payment. Turbo has assessed us a large late penalty on the whole . We owed only $53 on our 2023 return and paid in 110% of our 2022 tax. Is Turbo wrong? How can I get that changed? Should we pay it and file a 2210? Thank you

164

Level 15

Jan 28, 2024 11:51:07 AM

Unfortunately, paying 110% of 2022 tax is not sufficient.

If your quarterly withholding and estimates in 2023 are at least 100% / 4 = 25% ( 110% / 4 for certain high income taxpayers) of your 2022 tax, there will be no penalty on your 2023 tax return, regardless of any jump in income.

You can use Option C or Option D on the Form 2210 to reduce or eliminate the penalty.

@Evetsh

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Late payment penalty