I sold my house in June 2013 for gain and as a result I owe $18300 federal income taxes for
2013. Last year my taxes were $8430 and since I paid $9000 I got federal refund last year.
Based on last year 2012, I paid $8640 federal Income taxes. Do I owe underpayment penalty this year because I paid $8640 estimated taxes, but I owe $18300 due to sale of my house.
The form 2210 says that if I paid enough taxes this year based on prior year income, I do not owe penalty this year.
Please clarify. Can I pay now the balance of the taxes I owe before 14th of January and avoid underpayment?