I assumed that TurboTax had made all final IRS forms available. I too owe a penalty for the 2020 tax year and allowed TurboTax to calculate it (using the short method on IRS Form 2210). When I reviewed the return, the penalty seemed high, so I dug deeper and gave Form 2210 a hard look - walking through, step-by-step. I found the calculation performed in line 15 (multiplying line 14 by a factor of 0.01744) didn't calculate properly. The penalty shown on line 15 was about 50% higher than what the actual calculation was (using the calculator on my iPhone). So, even with the reduced penalty for an early filing (which I can't do anyhow since TurboTax hasn't yet incorporated current Form 2210), the net penalty as calculated by TurboTax is higher than the full penalty as calculated by hand. What gives with that?
Just went back and looked further. It seems that the 2020 tax year TurboTax is still using last year's (2019 tax year) factor (0.03398) for the short method on Form 2210, rather than the current (2020 tax year) factor of (0.01744). That would explain why my 2020 tax year TurboTax calculated penalty is about 50% higher than what it should be. Sad situation, but glad I hadn't filed yet.
