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12c number should be the smaller of line 12a or 12b.
But the bigger number(12b) was auto selected, resulting in Estimate
How can I fix it?
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That's because you've overridden the option for Payments & Penalties > 2021 Estimated Tax (1040-ES) > Estimate options [O] with option 3=Greater of 90% of 2021 or 100/110% of 2020 tax. The one you should select is 2=Lesser of 90% of 2021 or 100/110% of 2020 tax. I'm assuming you are pretty certain your client will have a lower liability this year.
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That's because you've overridden the option for Payments & Penalties > 2021 Estimated Tax (1040-ES) > Estimate options [O] with option 3=Greater of 90% of 2021 or 100/110% of 2020 tax. The one you should select is 2=Lesser of 90% of 2021 or 100/110% of 2020 tax. I'm assuming you are pretty certain your client will have a lower liability this year.
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Given the uncertainties around tax law changes, adjustments for future installments may be necessary if you really don't want to use the ol' trusted prior year exception.
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Thank you for your advice.
I fixed the federal option to 2=Lesser of 90% of 2021 or 100/110% of 2020 tax and if fixed!!!
Yes, I'm quite certain my client would not need estimated tax payment because he set much higher withholding amount from his W2 this year.
May I ask what is the right option for CA?
And what is "the ol' trusted prior year exception"?
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Prior year exception is 100/110% of 2020 tax.
CA works the same way as federal but you can't use prior year exception if your client wasn't a FY CA resident.
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I have a state return I am doing, and this was great information!
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Thank you! I appreciate your help!!!
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