Form 2210 Line 8 Underpayment Penalty

[JotikaT2]

Not necessarily.  The underpayment penalty is calculated if you do not have enough withheld in income taxes throughout the year as you earn your income. 

You can try to reduce your underpayment penalty by following the tip at the bottom of the link below to annualized your tax.  Essentially, if you enter that you had no income for the first 5 months, your underpayment penalty would be reduced or potentially eliminated as you did not earn any income during the beginning of the year.

Underpayment penalties

[Mshanesbox]

Thank you for the help, that saved me a decent amount of money. 

It looks like there might be an error on your form 2210 for "total tax withholding for all four quarters" page. The dates are not correct, I entered a running total by actual quarter (Jan-Mar, Mar - July, etc.)  here is what appears in the step by step inside TT:

1/1/2020 - 7/15/2020

7/16/2020 - 7/15/2020

7/16/2020 - 9/15/2020

9/16/2020 - 12/31/2020

 I calculated by month's start to month's end, adding the 15 days seems to not accurately show quarters.

[fanfare]

Have no doubt. IRS will calculate your penalty and send you a new statement if your calculation is incorrect.