Bits and pieces of my thought process:
I file a 1041 using Turbo Tax Business and it appears that capital gains are not annualized in that 2210 calculation either. At least TT is consistently wrong. I had no penalty and filed with the wrong numbers on 2210AI. My rational is that if the scaled capital gains were entered my overpayment would have been higher and IRS is not going to chase me for no monetary gain on their part.
I said I was going to use some other software next year. While I was waiting for a TT fix, I shopped for some other software. I went to the large online merchant's site and read reviews. One package that I was interested in (I need 1040 and 1041) had reviews that said they nickeled and dimed you to death - you want a printed return that cost more. Stopped looking at that package. Bought a package that would do my 1041 and 1040 in the same purchase. I installed, and entered my 1040 information. This package didn't even ask about capital gains and qualified dividends for the 2210AI, didn't have the expected taxable portion of the IRA withdrawal, and didn't handle 199A deduction coming from my K-1 (said I needed professional help). Lesson learned - I will not switch. TT in spite of its problems is the most complete and helpful package for me and others with complex taxes (IMHO).
I finally got impatient and filed my 1040 return. With the capital gains not annualized I didn't owe a penalty and felt safe filing with a slightly higher quarterly tax calculation on the 2210AI.
Work arounds: Had I owed a penalty, I would have used some of the work arounds suggested in this forum. I could have included capital gains in the qualified dividends number which is scaled. Or better yet scaled the capital gains before I entered them in the turbo tax interview boxes. Multiplied first quarter capital gains by 4 (or 6 for the 2210AI of the 1041), etc.
Hopefully this time next year TT will have fixed these problems.
