Hi,
I don't understand why I would have underpaid in 2020 if I used turbotax to file. All the income was included in the tax return. Did turbotax not report the correct amount owed to the federal government?
I don't think this is right. I paid the amount owed to the federal government as expected and now I have a 2210 form. I even spoke to a tax expert live last year (2020 taxes).
Please explain.
PCake
Did the IRS send you the 2210 and a bill for 2020? Or is this on your 2021 return?
If you do not pay enough tax, you may have to pay a penalty for underpayment of estimated tax. Even if you are getting a refund you can still owe a penalty for not paying in evenly during the year. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. It is included in your tax due or reduces your refund.
What does term tax liability mean on form 2210? Is that just the same as your entire federal tax
Your tax liability is the total amount of tax on your income minus any non-refundable credits such as child tax credit, saver's credit, dependent care credit to name a few: