Raendrea
New Member

Tax Year 2021 Calculation of Underpayment Penalty

Turbo Tax shouldn't be generating a Form 2210 Underpayment of Estimated Tax... until it evaluates if there is an entry in "Line 37 Amount you owe." of the 1040.  In the 2021 Instructions for Form 2210 under "Who Must Pay the Underpayment Penalty" it says "In general, you may owe the penalty for 2021 if the total of your withholding and timely estimated tax payments didn't equal at least the smaller of:  1.  90% of your 2021 tax ..."  In the 2021 Form 1040 instructions on page 62 under "Line 38 Estimated Tax Penalty" it says " You may owe this penalty if Line 37 is at least $1,000 and it is more than 10% of the tax shown on your return, or You didn't pay enough estimated tax by any of the due dates.  This is true even if you are due a refund."  I have overpaid and am receiving a refund, but because I pay over fifty percent of income tax with estimated tax payments, Turbo Tax is generating a Form 2210.  How can I fix this error?