Tax on Conversion of IRA to ROTH
On December 30th, 2022, I converted $96,928.00 from traditional IRA to my ROTH. Knowing this is a taxable event, I sent in an estimated tax payment of$31,000.00, postmarked by January 17th, 2023 but noted a penalty of $486.00 on my 2022 1040 tax form. I would not expect this penalty since the taxable event took place in the last quarter of 2022 with estimated tax paid within days of the taxable event. Is this penalty appropriate or should I file an amended form 1040 to recover?
Terry Says
Why did you receive this penalty? Who “noted” this penalty — your tax preparer? Generally, the IRS assesses a penalty, not you or your tax preparer. Honestly I’m confused about this amount!
Typically you would have until the date your 2022 tax return is due (April 18th this year) to make full payment of taxes owed –as long as you paid in at least 90% of what was owed or 100% of what you paid in last year. I need more info about this to comment further.
