I sold stock at the end of 2021. I paid the estimated taxes within a month. I am being penalizd since it wasn't four payments throughout 2021. Help! I removed the for

[lowieraffi-aol-c]

I removed the Oregon form 10 and 2210 for underpayment penalty calculations and it didn't help.

[LeonardS]

The U.S. tax system operates as a pay-as-you-go system. What this means is that you must pay your taxes as they occur.  For example, if your estimated tax payment for the fourth quarter is less than the amount required for the income earned plus your stock sale you will incur an underpayment penalty.  The previous quarterly payments do not impact your penalty in the fourth quarter.

[lowieraffi-aol-c]

Hi Leonard,

I appreciate your reply.  I get it that the taxes are a "pay as you go" arrangement, but I sold stock at the end of the year, and paid the taxes for that sale within the same quarter.   I paid more than I owed.   My issue is that Turbo Tax is saying that I should have paid estimated taxes on a asset in the three quarters prior to the sale. 

It would be a similar situation if someone becomes self-employed in June and pays estimated taxes for the last half of the year, but gets dinged for not paying estimated taxes for the first two quarters of the year that he was unemployed.

The Federal portion of Turbo tax didn't penalize me, just the Oregon state portion. 

[Critter-3]

To reduce or possibly even eliminate your underpayment penalty, search for annualizing your tax (use this exact phrase) inside TurboTax. This will take you to the underpayment penalty section, and we'll take you through the steps to possibly reduce or eliminate your underpayment penalty.

[lowieraffi-aol-c]

Thank you for your reply.  I did the search on Turbo tax and all it brought up was "help" questions, but this is exactly what I what I need, so thank you very much!  I am frustrated because I can't find a link to take me to that section, and the help section suggested that there would be a link from the Estimate Penalty section of the step-by-step directions, but there isn't.   I deleted that form (2210) since a google search said to just delete the forms associated with the penalties and that would fix the problem.  Ha!