Level 2

Question

estimated tax penalties

Forum|Forum|4 years ago
April 18, 2022
9 replies
19 views

How are estimated tax penalties computed? i have two clients with practically identical returns except for estimated payments, one with taxable income of $724386 that owes $96863 with penalty $53 and the other with taxable income of $724021 that owes $50759 with penalty of $598.

ProSeries Professional

This topic has been closed for replies.

Level 10

Might depend how the prior year tax compares to current year withholding and estimated tax payments.

Go through the 2210 and worksheets carefully and you may find a difference in there somewhere.

Intuit Community Champion

Intuit Community Champion

how much was the tax liability for each person in 2020?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Level 2

client with $598 penalty tax liability $147285

client with $53 penalty tax liability $142098

Level 10

And what were their 2021 Withholding/Estimated payments?

Level 2

Maybe they paid estimates at different times during the year. And that compared to withholding, and compared to last year's tax liability

Level 2

pay dates for both clients are the same, 4-15-21, 6-15-21, 9-15-21, 12-31-21.