I asked this question about 4 weeks ago but I am still a bit unsure. I did a partial rollover to a Roth IRA the last week of 2021. I paid the estimated tax for this rollover amount to the IRS online the first week of 2022. I am working on my 2021 taxes using the desktop version of Turbotax. It is saying that I have an underpayment penalty. I don't normally make quarterly estimated payments but I guess the end of year rollover is causing this penalty flag. I paid enough tax on the rollover and I am getting a refund.
Can I delete the penalty showing on form 1040 and have the IRS figure the penalty and send me a bill? I can then respond and explain the end of year rollover. Or, should I choose the Underpayment penalties option and complete form 2210 using the Annualized Income Method to report my income by quarter and try to eliminate the penalty?
By the way, form 2210 has some flaws in the software. On schedule 1A of the form, line 7 asks for the sum of the standard deduction and line 12b (charitable contributions) from the 1040. The software is not adding in line 12b
and I cannot add it manually.
