fanfare's posts below makes sense regarding withholding.
I'm still struggling with VolvoGirl's response. I see exactly where the "Underpayment Penalties" section is based on her helpful first post. The problem is I entered into TT a simple test case tax return where there was $50K of Interest income and a single estimated tax payment in Q4 of $2700. TT calculated a refund of $16. When I start the "Underpayment Penalty" interview, I get the message below saying there was "No Underpayment Penalty". How can TT know there is no underpayment penalty if it doesn't know what quarter the interest was earned in? I certainly would have expected an underpayment penalty since the tax was over $1000, even though there was a refund.
Sorry, maybe I'm being thick, but this does not make any sense. It could all be earned in Q1 and there would therefore be a penalty. TT is not prompting for any questions that would lead to a F2210 calculation.
This is exactly the situation VolvoGirl described below where she had a refund but owed a penalty. I would really like to understand why TT is not calulating an underpayment penalty in this specific test case.
No Underpayment Penalty
Based on your entries you don't have a penalty for underpayment of estimated taxes.
Do you want to review the estimated taxes topic? |
