Can you help me to understand the following: The program is asking me to enter line 4-a on form 2210AI

[DaveF1006]

it depends.  If you are annualizing your income to avoid an estimated tax penalty, then you need to file Form 2210A1. If you are itemizing your deductions, then you will prorate those deductions that occur between 1/1/20-3/31/2020 in Box 4a   You may be asked to enter information for 4B and 4C. If you are claiming the standard deduction, put a 0.

[Edited 03-16-2021|04:17 PM PST]

[mkchrist2-gmail-]

Dave, thanks for your reply.  However I am not sure how to prorate my deductions.  I owe $200 total for the entire year.  Somewhere in the program it stated I owed $20 for a late fee.  I was unemployed for the year and had no idea what income I would recieve. I paid some federal taxes but not enough.  

I have to file itemized as my huband is also itemizing (which requires me to itemize vs standard deduction).  

When I attempted to put in 0 in the field, it asked me to complete line 4a, 4b, 4c, 16a, 16b, 16c and 1a and 1 b. 

I am not sure how to solve this. Any other advise? 

thx, 

MK

[DaveF1006]

Just delete the Form 2210AI. You do not need it. 

1. Log into Turbo Tax
2. At the bottom left of the page go to.
3. Tax tools
4. Tools
5. Delete a form
6. Look for Form 2210AI Delete that form from your list of forms

Now the bigger issue.  Did you make an early distribution from a retirement plan or some other type of a plan? Reason being is that this is charging you a 10% early withdrawal penalty.  Tell me the circumstances behind this and why the withdrawal was made? Also tell me if this is from a 401K or IRA.

[mkchrist2-gmail-]

Dave, 

I did not take an early retirement.  In Q1 I was paid a bonus by my former company in March 2020 (My job ended with them in 2019).  I was on unemployment from February through October 2020.  Taxes were taken out of my bonus in Q1 but not my unemployment in Q2 and Q3.

I did not have a Form 2210ai in 2019.  I only owed $196. 

This year I owe $250.  

I went back into the section for underpayment and entered some additional information and the program now indicates "No Undepayment Penalty".  I hope this is correct 🙂 

Thx, MK

[JoannaB2 · Accepted solution]

Yes, you may owe federal taxes but no tax penalty.  You don't owe tax penalty if the total tax shown on your 2020 return minus the amount of tax you paid through withholding is less than $1,000. In your case, you only owe $250, You don't  need to file form 2210.

Generally, you may owe the penalty for 2020 if the total of your withholding and timely estimated tax payments didn't equal at least the smaller of:  90% of your 2020 tax, or100% of your 2019 tax. Your 2019 tax return must cover a 12-month period.

Use Form 2210 to see if you owe a penalty for underpaying your estimated tax. The IRS will generally figure your penalty for you and you should not file Form 2210. You can, however, use Form 2210 to figure your penalty if you wish and include the penalty on your return.