How is the tax penalty calculated

samzandt · ‎June 1, 2019

I see Form 2210 line 5 of Part I uses 90%, but I thought the IRS changed this to 85% and more recently to 80%. Is the IRS' change to 85% (or 80%) (A) the threshold amount to determine whether you owe a penalty and if owing a penalty you use 90% in line 5 to calculate the amount; or (B) should you just use 85% (or 80%) in line 5 to calculate the amount? It is not clear to me.

Thank you

ChristieB · ‎June 1, 2019

The changes to Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts, are scheduled to be updated in a release currently planned for March 29, 2019. There is a link within the answer below that outlines all of the changes that will be made.

https://ttlc.intuit.com/replies/7339313