@ croegner wrote:
How do I correct an error in the TurboTax calculation that assessed an estimated tax penalty of $6 on this years 1040-SR, line 38? $2,000 of my 2019 tax overpayment was applied to my 2020 tax liability and excess estimated tax payments were made during the year (once when I converted an IRA amount to a ROTH and again in the 4th quarter when I received a fairly large one time capital gain).
This years Withholding and Estimated Payments have resulted in a 2020 overpayment exceeding $4,000 and I am again applying $2,000 of the overpayment to our 2021 tax liability.
What is the basis of the TurboTax estimated penalty calculation for 2020?
No one can know anything specific about "your" return in a user community forum, since obviously no one can see your return (and do not post it here! this is a public Internet forum). But this can indeed happen. In general, one can have an estimated tax penalty if any one quarter is short of the required installment, even if there is a large overpayment for the whole year when all the payments are added together.
The best way to see what is happening is to look at the Form 2210 to see how the penalty was calculated. We can tell you how to view it.
Are you using Online TurboTax or desktop software (CD/download)?
If desktop software, then you have the benefit of Forms Mode where you can view the Form 2210.
If you're using Online TurboTax, have you already paid for it? If so, you have full printing privileges, and we can tell you how to do it. If you haven't yet paid, we can tell you how to pay in advance to have printing privilege.
NOTE: I also left you an ADDENDUM in my next comment following this one.
