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Capt Bill
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estimated tax penalty

I had no tax liability in 2018. Due to a stock sale in the 4th quarter 2019 I owe $14,000 taxes for 2019. 

1) Can I avoid penalty if I file my return by January 31, 2020?

or, less desirable

2) Can I avoid penalty if I pay 100% of the tax with my 4th quarter estimate on January 15, 2020?

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2 Replies

estimated tax penalty

If you truly had no tax liability in 2018 you are exempt from any underpayment penalty for 2019.

Capt Bill
New Member

estimated tax penalty

Thanks-When I tried to follow the line by line instructions for the Form 2210, this was not entirely clear. Thanks for the help

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