Form 2210 Penalty

Forum|Forum|3 years ago
April 10, 2023
1 reply
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I don't think I owe any taxes. Where is this coming from? I need help from experts.

This is the first time I've seen it.

TurboTax Home & Biz Windows

Vanessa A

Level 15

It says you owe $1,847. Your tax liability is $2,336 and you only paid in $553. You are getting a penalty because you didn't pay the full amount you owed for the year. If you only had a tax liability of $553 for 2021, then you can claim a penalty waiver by continuing through and answering yes when TurboTax asks if you would like to see if you can get the penalty waived. It will then ask what your liability was for 2021 as well as your 2021 income. If you paid 100% of your 2021 liability, the penalty will be removed. You can also see if you qualify to annualize your income on the same form which means if you received most of your income in the last quarters of the year, you would be able to lower your penalty. Otherwise, you will likely be charged the full $64.

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TheWisdomAuthor

Level 5

Excuse me! But you might be missing something here; the $64 penalty is from the 2022 tax year, NOT 2021.

This could be a bug (error) in the TurboTax software.

JulieS

Level 15

Yes, this penalty is for 2022, but Form 2210 uses two methods to determine the minimum amount you must pay.

To avoid the penalty you must pay in 90% of your current year tax (2022) ,or 100% of the total tax from the prior year (2021), whichever is less.

If you owe more than $1000 when you file your return and you have not paid in 90% of your current year tax (2022), or 100% of the total tax from the prior year (2021), you will owe a penalty for failing to pay enough tax through withholding or estimated payments.

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