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Level 5
January 21, 2025
Question

Where is Form 2210, since Turbo Tax has calculated an estimated tax penalty?

  • January 21, 2025
  • 2 replies
  • 16 views

Where is Form 2210: Underpayment of Estimated Tax by Individuals, Estates, and Trusts?? And the Form 2210 Underpayment Penalty Worksheet? Turbo Tax 2024 calculated a penalty of $6, so there should be a worksheet to show how it was calculated.

 

Turbo Tax calculated this estimated tax underpayment penalty because I did not pay the 1st quarter estimated tax payment on time. Turbo Tax says the penalty is $6. Is this the actual penalty? Or is it a Turbo Tax estimate? After Turbo Tax submits it to the IRS, does the IRS go with the Turbo Tax calculation? Or does the IRS re-calculate it and take a different amount from the refund?

 

    2 replies

    DoninGA
    Level 15
    Level 15
    January 21, 2025

    Click on Federal Taxes (Personal using Home & Business)

    Click on Other Tax Situations

    Under Additional Tax Payments

    On Underpayment penalties, click the start button

    kamull01Author
    Level 5
    January 21, 2025

    I went to Federal Taxes > ‘Other Tax Situations’  tab > Additional Tax Payment > Underpayment penalties > Update.   It says “You have a penalty of $6. Do you want to see if you can reduce or eliminate the penalty?” I answered “ Yes”.  I answered the question about fishing and gaming (no), 2023 tax liability (transferred from 2023), 2023 AGI (transferred from 2023), and then answered “Do you want to annualize your income?” I answered “yes”.

     

    Annualized Income
    Most of my income and most of my withholding (pensions) is in the 4th quarter.


    I entered accurate information for cumulative income for each of the 4 boxes (the end dates do not correspond to the end of a quarter). The penalty was $0. I did not elect to treat the tax as paid when it was actually withheld. There is a Form 2210 now and it is filled out. Line 19 Penalty is $0,   However, there is an exclamation mark by Form 2210 and it says “Not Done”.  ???

     

    I went back and elected to treat the tax as paid when it was actually paid. I entered the figures for each of the boxes, paying attention to the end date for the box.   The Form 2210 now says the penalty is $1. The $1 penalty is assigned to the 2nd box for being 6 days late on the estimated tax payment.  And it still says “Not Done’.   ???

     

    No matter whether I do annualized income only or both annualized income and treating the tax as paid when it was actually paid, both the Form 2210 and the Underpayment Penalty Worksheet have a column for 01/15/2025. It looks like it is expecting an installment of around $11K (!!) by that date. But, my tax obligation was already satisfied at the end of 2024 by the 2024 withholding and the total 2024 estimated tax payments that had been made in 2024.

     

    I have tried to fill in the box on the Date of Payment screen, for “Date you will pay the balance due”. No date will work. Maybe, this is because today is after 01/15/2025. But, as I say, my tax obligation was already satisfied at the end of 2024 and I shouldn't have had any more installments to make.  If I had made an $11K estimated tax payment by 01/15/2025, I would be getting it back as a refund plus the refund that I already have coming.

     

    Something seems not to be working right here??

     

    baldietax
    Level 12
    January 21, 2025

    You can get to Form 2210 by double-clicking on Form 1040 penalty line then double clicking again on the worksheet penalty line to see Form 2210.  From what I've seen Form 2210 doesn't appear in the forms list by default unless you've gone thru the deeper Annualized Income (AI) process for uneven tax by quarter.

     

    $6 isn't an TT estimate it's a final calculation using Form 2210 which is pretty straightforward.  Presumably IRS checks it.  Underpayment penalty rate is currently 8%.  You can also have IRS calculate it and send you a bill, but not worth it for small penalty easily calculated with your return and be done with it.

    kamull01Author
    Level 5
    January 21, 2025

    @baldietax,

    Form 1040 does not have a penalty line to double-click on. It has line 34: amount overpaid and line 35a amount refunded to you, which is $6 less than line 34. That’s all the information on the 1040: these two figures with a $6 difference between them.

    baldietax
    Level 12
    January 21, 2025

    @kamull01 there is line 38 "estimated tax penalty"