Question

estimated tax penalty

I had no tax liability in 2018. Due to a stock sale in the 4th quarter 2019 I owe $14,000 taxes for 2019.

1) Can I avoid penalty if I file my return by January 31, 2020?

or, less desirable

2) Can I avoid penalty if I pay 100% of the tax with my 4th quarter estimate on January 15, 2020?

Employee

If you truly had no tax liability in 2018 you are exempt from any underpayment penalty for 2019.

Thanks-When I tried to follow the line by line instructions for the Form 2210, this was not entirely clear. Thanks for the help

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