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Why is proconnect calculating an underpayment penalty when I paid 110% of last years tax liability?

robinweaver
Level 3
 
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abctax55
Level 15

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.

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5 Comments 5
abctax55
Level 15

Were the estimates made timely?

"*******Tax software is no substitute for a professional tax preparer*******
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robinweaver
Level 3

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

abctax55
Level 15

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.

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
robinweaver
Level 3

Thank you very much.

abctax55
Level 15

YVW

"*******Tax software is no substitute for a professional tax preparer*******
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