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Level 4
March 9, 2020
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Why is proconnect calculating an underpayment penalty when I paid 110% of last years tax liability?

  • March 9, 2020
  • 1 reply
  • 15 views
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Best answer by abctax55

Then you need to annualize.  Look at Form 2210.  You have to tell the software that the big gain happened in the time frame of the estimate.

1 reply

abctax55
Level 15
March 9, 2020

Were the estimates made timely?

HumanKind... Be Both
Level 4
March 9, 2020

No.  One large sale of stock with one large estimate.

abctax55
abctax55Answer
Level 15
March 9, 2020

Then you need to annualize.  Look at Form 2210.  You have to tell the software that the big gain happened in the time frame of the estimate.

HumanKind... Be Both