underpayment penalty

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? 

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  • Asked by Ramas
  • TurboTax Premier
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Answer

Can I pay the remaining taxes before January 14th, and avoid penalty or since I paid enough taxes based on previous year income IRS won't impose penalty? 

It looks like you missed three installments if the house was sold in June.  In any event, a payment at this time will avoid the penalty for the fourth quarter, but not the second and third.


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