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You may be able to eliminate the Estimated tax penalty by completing the Form 2210
Click on Federal on the left side of the online program screen
Click on Other Tax Situations
Under Additional Tax Payments
On Underpayment Penalties, click on the start button
Where did you enter zero or cleared what entries?
The Estimated tax penalty is not for filing or paying late. Or for not paying estimates. And is not about last year. The penalty is an "estimated" amount.
If you do not pay in enough tax from withholding and estimates, you may have to pay a penalty for underpayment of estimated tax. Even if you are getting a refund you can still owe a penalty for not paying in evenly during the year. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. It is included in your tax due or reduces your refund.
You might be able to eliminate it or at least reduce it. You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you. It's form 2210.
It's under
Federal or Personal (for Home & Business Desktop)
Other Tax Situations
Additional Tax Payments
Underpayment Penalties - Click the Start or update button
you can submit your return without the 2210 and let the iRS bill you if you owe the penalty
IRS requires you to estimate your total tax for the year and pay as you go.
There is no optional enrollment.
If you don't comply, you may be subject to a penalty Form 1040 Line 38.
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