Hanover Jim Posted October 12, 2010 Report Share Posted October 12, 2010 If a client converts a Roth and wants to pay the taxes on his 2010 return are there any exceptions to the Underpayment Penalty? In other words if they convert in December must they pay a January estimated payment to avoid any penalty? They will not be using any of the converted amount to satisfy the tax liability. Quote Link to comment Share on other sites More sharing options...
Kea Posted October 12, 2010 Report Share Posted October 12, 2010 If their 2010 withholding covers 90% of their 2009 total tax, they don't have to worry about the penalty. (Unless income is over a certain amount, then 100%) So, if your income "jumps" in one year, you don't get penalized for not paying in enough tax during the year. Quote Link to comment Share on other sites More sharing options...
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