2023 IN Estimated Taxes - Turbo Tax IN doesn't automatically look at IT-2210A

[rlstrommen58]

I had a situation where I did a huge ROTH conversion in 4Q 2023.  This jacked up my income and required a 4Q 2023 huge estimated tax penalty.

However, when Turbo Tax IN filled out IT-2210, it didn't bother to let me document my income for the year, and it saddled me with a $100 penalty because I didn't normalize my estimated tax payments.  The thing is, I didn't know I was going to do a ROTH conversion in 4Q.  Thus I was entitled to not make an estimated payment throughout the year.

I found the IT-2210A form myself and calculated my 3-mo, 5-mo, and 8-mo interim income with the end year income.  After filling this out, my Late Payment Penalty disappeared because it wasn't actually due until the income was realized.

Thus, Turbo Tax IN did NOT create my biggest refund, and I had to find my way to the proper form myself.  It should have asked me if I needed to 

[SteamTrain]

I personally don't have the Indiana forms, but when I've worked on IA and NC taxes, there is an Other Tax Situations page in the State section that allowed me to go thru their state underpayment penalty Q&A.

Go back and look for it in there.

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@Rick19744   You apparently work with the Indiana forms.  Do you have a picture of where the desktop software's Indiana underpayment penalty Q&A starts?  (thus filling in the IT-2210A)

[rlstrommen58]

I noticed the penalty on the summary page that Turbo Tax prints with your return.  At no time did Turbo Tax alert me to a penalty.  Or Present any information in Q&A that led me to understand that I needed to do something else.  That should have been a no-brainer for Turbo Tax.  Ultimately, they failed to live up to their maximum return advertisement.  On my own I eliminated a $67 dollar penalty which I didn't deserve.

I found the forms by doing a google search on IN Estimated Tax Penalty.  That's where I learned about the form IT-2210 and IT-2210A.  My point here is that Turbo Tax did not alert me to the penalty, and thus did not present the IT-2210A form automatically to try to remove the penalty.

To fill out the IT-2210A you have to report your total income and credits at the 3mo 5mo 8mo and year end.  It then does proration math to determine if you had underpaid at any point.  Everything on the IT-2210A form is automatic.  To determine my 3mo total income I took my Gross Income minus my ROTH Conversion and divided by 12.  That worked well for me.

[Rick19744]

A few comments:

• I'm not sure that TT can ask every single question possible when developing software for the masses.
• I don't correlate the "maximum refund" with a penalty calculation.  A penalty has nothing to do with computing the tax; it only computes a penalty based on when withholding or estimated tax payments are made versus when they should have been paid in.
• I don't have any downloaded software, but can't you go into the forms mode and search for the 2210A and then enter the information there?
• Having said that, the form IT-2210A does not appear to be supported by TT for efile, so while you can complete the form within TT, you will need to paper file your Indiana return.
• https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...