You are seeing Form 2210 because TurboTax is computing an underpayment penalty based on your entries. Do you owe tax? You may have an underpayment penalty if you did not withhold enough.
Many taxpayers received large unemployment benefits due to the $600 per week Pandemic Unemployment Assistance. When PUA is added to their total income, the total tax rate ended being higher than the withholding rate on PUA.
If you didn't pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of 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.
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