topic Form 2210: avoiding underpayment penalty in Get your taxes done using TurboTax

Form 2210: avoiding underpayment penalty

ccorless — Tue, 24 Feb 2026 06:15:20 GMT

I paidmore than 110% of my 2021 tax total, however, TurboTax is telling me I have $118 underpayment penalty. Why?

Details: I had large long-term capital gain in May. I paid a single estimated payment by June 15 to ensure I would achieve the 110% safe harbor threshold, but it's still listing a penalty. How do I fix this?

Re: Form 2210: avoiding underpayment penalty

Vanessa A — Wed, 05 Apr 2023 01:04:43 GMT

You will need to go through the penalty waiver form 2210 to get rid of the penalty. You can do this one of 2 ways. At the end of the return, TurboTax will say lets see if you qualify to remove or reduce this penalty. Here you can answer yes and then walk through the questions telling TurboTax your 2021 Income tax amount and the payments that you made. You can also go to Other Tax Situations>>Penalty Waiver and fill out the form. This will allow you to answer questions to reduce or eliminate the penalty.

Re: Form 2210: avoiding underpayment penalty

fanfare — Wed, 05 Apr 2023 02:00:53 GMT

the prior years tax rule requires equal payments over the four estimated tax periods.

Since you did not do that, then you can resort to Schedule AI; this is not guaranteed to eliminate the penalty.

@ccorless