topic Underpayment penalties shows dividends paid out instead of capital gains paid out in Get your taxes done using TurboTax

Underpayment penalties shows dividends paid out instead of capital gains paid out

alimpich — Sun, 15 Feb 2026 00:01:34 GMT

In Easy Step "Other Tax Situations"-> "Underpayment penalties" shows total dividends paid out instead of capital gains paid out on the Net capital gains page. And there is not a Dividends page. I had to go into form 2210 Schedule AI and enter the correct capital gains for each period and the correct dividends for each period in the "Capital Gains Tax Computation Smart Worksheet".

Re: Underpayment penalties shows dividends paid out instead of capital gains paid out

RogerD1 — Thu, 19 Feb 2026 22:20:31 GMT

When you enter your income in to use the annualized method to calculate the underpayment penalty, there is a screen called Net capital gains. This page requires you to enter your Long term capital gains and qualified dividends received in each of the periods because these receive the more favorable capital gains tax rates that are different from the ordinary income rates for all other income, which also includes short-term capital gains and those dividends that are not qualified dividends. If you enter each of these specific incomes for the time periods specified, this will get the correct information for the underpayment penalty determination.

Re: Underpayment penalties shows dividends paid out instead of capital gains paid out

alimpich — Sat, 28 Feb 2026 01:04:03 GMT

But the Easy Form page says:

"Net capital gains" in the title of the page

"Enter your net capital gain/loss amounts for all periods through August 31, 2025 (even if 0)."

But then for "Qualified dividends" it only the total amount of the Qualified dividends appear in the box for 1/1/2025 to 12/31/2025.

There is not a place to enter the Net capital gains as in previous years.

As I mentioned, I could get around this by going into Form 2210 Schedule AI and entering the correct amount on the Capital Gains Tax Computation Smart Worksheet line B which comes from Schedule D line 15 and entering the correct amount on the same worksheet line E which comes from 1040 line 3a.

What I am saying is that the Easy Form does not actually show the Net capital gains amount, it just shows the Qualified Dividends even though the title of the Easy Form page is Net capital gains.