Thanks for the multiple responses. Realize I hadn't given the full context and background of this issue, which are as follows.
- My 2023 tax liability was not zero. I was full-time employed until Oct 23, when I retired.
- My income in 2024 was solely from pensions and interest/dividends/withdrawals from investment accounts. Total income was about 50% of my 2023 income, and about 50% of 2024 income was from an IRA withdrawal in Dec 2024.
- I did not pay estimates in advance.
After receiving the notice of penalties for underpayment from IRS, I reviewed Form 2210 instructions and saw that I had two options: a) request waiver of the entire penalty because of the retirement event in 2023, or b) request reduction of the underpayment amount based on the fact that 2024 income was not uniform across the year and was back loaded to Dec, using Form 2210.
When I tried to open Form 2210 in TurboTax, I ran into the problem described in the original post above. I did download the form from IRS but found it very complex, and would have very much liked to use TT forms to fill it out - which is why I raised the issue on this forum.
Option (a) was simpler; following directions in the underpayment penalties notice, I have sent a letter to IRS attesting to the retirement in 2023. Hope this works.
When filing 2024 returns TT actually calculated penalties for underpayment of my State tax returns, and enabled me enter the non-uniform distribution of income over 2024 and thereby reduce penalties. However, TT seems to have completely missed this issue for my Federal return. Considering their "100% Accurate Calculations Guarantee", this is disappointing.
