Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Feb 4, 2021 10:25:02 AM

It says I have to fill out a "Form 2210: IRS to Figure Penalty Box" or wait for an update in Early February. When is that update expected?

0 40 15491
24 Replies
Expert Alumni
Feb 4, 2021 10:52:34 AM

The form 2210 is scheduled to be released 2/11.  The IRS is not accepting returns until 2/12 so you can wait and still get your return into the IRS on the 1st day of processing.

 

Here is the listing of form availability in TurboTax

 

The form 2210 is used to calculate any underpayment penalty.  We are all required to deposit 100% of the previous years tax or 90% of the current years tax to not incur an underpayment penalty.  If you balance due is less than $1000, you will not be charged an underpayment penalty.

Level 2
Feb 4, 2021 11:43:09 AM

Wonderful, thank you for the reply and clarification.

Level 2
Feb 11, 2021 2:30:19 PM

Is this still set to be released today? I've gone to my filing review page, and it's still asking me to either choose this option or wait for the "early February update".

Expert Alumni
Feb 11, 2021 2:44:43 PM

Form 2210, Underpayment of Estimated Tax is not ready yet.   The chart shows a tentative date of 02/18.   There is usually an option that says ''Let the IRS bill me later'' which will skip the penalty entry and Form 2210.   But if you want to get it waived or include it in your return, you will need to wait on the form.  

 

Underpayment penalties are assessed if you don't withhold or pay enough tax on income received during each quarter.   In fact, it's entirely possible to get hit with an underpayment penalty even though you paid your tax bill in full by the April deadline or are getting a refund.

 

Example: Joe is self-employed and estimated next year's tax bill at $20,000. Rather than making 4 quarterly payments of $5,000 apiece, he chose to pay $500 in each of the first 3 quarters, and the remaining $18,500 in the fourth quarter.   When he filed, his actual tax bill came to $17,270 and he got a $2,730 refund. However, he got hit with the underpayment penalty because he underpaid his estimated tax in the first 3 quarters.

 

Tip: To reduce or possibly even eliminate your underpayment penalty,  search for annualizing your tax (use this exact phrase) inside TurboTax. This will take you to the underpayment penalty section and we'll take you through the steps to possibly reduce your underpayment penalty. (If you don’t see Jump to annualizing your tax in the search results, make sure you’re in your return and not on the Tax Home page.)   

Level 2
Feb 12, 2021 8:07:17 AM

Thanks, the date keeps changing so this is the 3rd time they've pushed the date. 

 

Level 3
Feb 14, 2021 4:00:01 PM

Looks like it's now February 25, 2021.  Sigh.

Level 3
Feb 21, 2021 8:39:24 PM

The longer we wait the more interest is accrued. TurboTax please update it timely.

Level 9
Feb 22, 2021 7:49:29 AM

Form 2210 has been updated.  

IRS Form 2210 (Underpayment of Estimated Tax by Individuals, Estates, and Trusts) calculates the underpayment penalty if you didn't withhold or pay enough taxes during the tax year.

 

We'll automatically generate a Form 2210 if your return needs it. Or you can revisit this section:

Note: You'll need your prior year tax return to answer the questions.

  1. Sign in to TurboTax and open or continue your return.
  2. Search for underpayment of taxes.
  3. Select the Jump to link in the search results.
  4. The Underpayment Penalties screen will display the penalty amount. Select Continue to review this section and make any needed adjustments.
    • Note: If you see No Underpayment Penalty, you either haven't entered your income and/or estimated tax payments yet, or you aren't subject to an underpayment penalty.

(Optional) Keep going, and when you get to the Annualized Income Method screen, answer Yes if you want to see if we can reduce the penalty.

 

If you're having an issue generating the form, it could be a cache issue.

 

Your browser stores recently visited webpages as temporary files in a cache, which enables the pages to load more quickly when revisited.

However, a full or corrupted cache can cause problems in TurboTax, so sometimes you need to clear your cache (that is, remove these temporary files).

Here are the official instructions for the most popular browsers:

Apple's official support site doesn't appear to contain instructions for clearing the cache in Safari. Your best bet is to search the Internet for clear Safari cache or similar search terms.

 

If your cache isn't the issue, it might be best to delete it and start again.

 

@jianglai

Level 2
Feb 22, 2021 8:15:44 AM

I have done all that and it still asks me to "Check to have the IRS figure the penalty and send a bill if penalty due" on form 2210 or it says wait for the February update, which is still listed as 2/25 on the TurboTax site. We made/paid more this year than we have any years past, so there should be no underpayment issues or penalties at all. I will continue to wait for the 2/25 update to bypass the need for this form. Thanks though!

Level 2
Feb 22, 2021 8:26:52 AM

I have the same issue and am waiting for the 2/25 update.

Level 9
Feb 22, 2021 9:37:36 AM

You are correct, Form 2210 will be available soon.  According to this link, the projected date is 2/25/2021.

 

Refer to the Instructions for Form 2210 (PDF) for information on requesting a waiver of the estimated tax penalty.

Refer to Publication 505 for information about federally declared disaster areas.

 

@nowickis3

Level 2
Feb 23, 2021 8:20:28 PM

Hi

I am also getting the same message "Form 2210: IRS to Figure Penalty Box" or wait for an update in..."

I see the suggestion here is to wait for feb25th SW update,  but I have the following question 

-  I am assessed a underpayment penalty by TurboTax , the TurboTax questionnaire seemed to indicate only  if I am annualizing my taxes then I need to file form2210 , but I still got this message though I opted NOT to annualize my taxes . Can I get a confirmation whether this is an error in the current TurboTax SW and that this feb25th SW update will fix this?

 

Thanks

Expert Alumni
Feb 23, 2021 8:34:16 PM

It is not an error.  There is usually an option that says ''Let the IRS bill me later'' which will skip the penalty entry and Form 2210.   But if you want to get it waived or include it (whether or not you use the annualized method) in your return, you will need to wait on the form.    The only option to e-file without the form included in your return is to let the IRS figure the penalty and bill you later.  If you choose that option, they won't charge you interest on the penalty if you pay by the date specified on the bill.   @prad00

Level 2
Feb 23, 2021 9:26:37 PM

For some reason my 2019 tax did not go through this form 2210 questionnaire at all and I did pay the penalty then as well! (Seems TT has some update this year??)

 

Just to confirm I undertsand your response-If I am paying underpayment penalty along with the  return  I will need feb25th SW update , so  my fed return includes this form2210,  without showing the error message  - correct ??

And are we sure the SW update is happening on Feb25th , there were few dates on this thread mentioned but TT SW update never got released it seems?!

 

Thx

Level 9
Feb 24, 2021 11:06:09 AM

Yes, you are correct. If you're filing Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts and paying underpayment penalty along with your return, you'll need to wait until the form becomes available so you can e-file it together with your tax return. Once the form is released, there won't be an error message.

 

According to our most current information, Form 2210 is set to be released for e-file on February 25.  Here is a link that has updated information about forms and release dates.

 

@prad00

New Member
Feb 24, 2021 1:13:43 PM

It is forcing me to wait for a 2210.

 

This was because of my ex-wife's income from the previous year.  I have filed divorced this year and removed them from my taxes as they are dealing with this on their own taxes.  How do I remove the need for Form 2210 from my review taxes page?

Level 9
Feb 24, 2021 3:45:22 PM

For tax year 2020, you can change your filing status to Married Filing Separate.  You may need to create a new account in order to remove your estranged wife's data.  If you don't want to do this (if you wish to continue using the account you both used before) then you should go back to the Personal Info section and remove her completely. 

This will stop the software from including her data on your tax return.

 

You can also make sure that form 2210 is not stuck there (since it is there now) by manually deleting it after you've completed the above

 

How do I view and delete forms in TurboTax Online?

  • Open or continue your return in TurboTax.
  • In the left menu, select Tax Tools and then Tools.
  • In the pop-up window Tool Center, choose Delete a form.
  • Select Delete next to the form/schedule/worksheet in the list and follow the instructions.

@Doug913

New Member
Feb 24, 2021 3:50:20 PM

Yeah, I had tried manually removing all traces but the system still wouldn't let it go.

Even deleting forms didn't solve it.

 

The only solution that worked was to make a new account as recommended by the system when I tried the start from scratch option.

Level 2
Feb 25, 2021 12:55:18 AM

Today is Feb 25th, 2021, and I am still getting the same error. 

 

I need to file as soon as I can, but this kinds of errors are not helping. This is counterproductive.

Returning Member
Feb 25, 2021 8:10:08 AM

it is telling me to look at 2019 return for 2210 penalty form we did not pay a penalty last year as there in no form 2210 with my filing.  this year we have to pay a penalty and probably had to pay one last year but what do i do?

Level 3
Feb 25, 2021 12:48:42 PM

turbo tax doesn't care.  This form was suppose to be released today (2/25) and still has not.  Crazy that an under penalty form isn't even available on time.  People that need that form owe money, and want to pay, but cant!   Nice system---NoT!!!

Level 2
Feb 25, 2021 1:13:29 PM

It has been released. I filed my taxes at 945 this morning, no problem and no hold up like before saying I needed to wait on that form. 

Level 2
Feb 25, 2021 3:05:42 PM

Strange it still doesn't let me get past the point. I am still stuck and may have to delete the form manually and file...

Expert Alumni
Feb 25, 2021 3:20:48 PM

According to this Turbo Tax link, this is suppose to be available today. If not, then the release date may be extended. This is because We are waiting for the IRS to finalize and give us approval to update our software. This delay is being caused by the Covid-19 pandemic and year end tax revisions.