Form M-2210 Massachusetts--removing underpayment penalty

[pucksfriend]

On the Federal M2210 you can force a withholding (in my case, an RMD taken in January 2022) to show up in the quarter you take it. Using this technique, I am not charged an underpayment penalty on my federal taxes. 

On the Massachusetts M2210 the RMD withholding from January 2022 is spread over all four quarters, leading to a penalty. I cannot find a way to make Turbo Tax move the entire RMD withholding to the first quarter. Thus, Massachusets wants an underpayment penalty.

Is there a way for TT to adjust the state form so that the entire RMD withholding shows up in 1Q? 

[AmyC]

Yes.  Follow these steps:

1. Go through your MA return 
2. Summary screen- select Bottom Line
3. continue until you reach Underpayment Penalty and select Exceptions. 
4. Make a selection and continue entering
5. Continue on to Underpayment Penalty. 
6. Do you wish to use Annualization method? Yes
7. Enter the amounts for each quarter.

[pucksfriend]

Hi Amy,

When I select the Bottom Line, I see a line item called underpayment penalty, but it is not active, so I can't get to anyplace to enter the changes to the withholding. I can't see anything called exceptions. If I click Continue, I go through pages on voluntary contributions, and a few other things, but nothing on underpayment.

I am attaching two screen shots so that you can see where I am. Two shots to omit some data. 

[GeorgeM777]

Following up on the comments from @AmyC, go back to the General Info screen for your Massachusetts return.  From that screen, scroll down to Your Bottom Line and select Update.   You should see a screen relating to contributions and another relating to late payments. As you continue through the application, you should see the screen Underpayment Penalty where you can select Exceptions.   When you select Exceptions, you should then see your options for the underpayment penalty.

@pucksfriend 

[pucksfriend]

Thanks for your message. Unfortunately I end up in the same place as when I follow Amy's directions.

Additional Information

I am getting a refund, but am still required to pay a penalty. Do you think TT could be failing to show the Underpayment active options because I do no owe the taxes? 

[pucksfriend · Accepted solution]

My guess was correct. Once I 'fooled' TT into thinking that I owed $$$, then the information about exceptions to paying the underpayment penalty appeared. However, the options available did not address my issue of uneven withholding during 2022. 

I fixed the issue by going to the Forms method. On Form M-2210 (the Massachusetts version of the Federal form) there is a line that lets you enter uneven withholding. Once I put the RMD withholding in the April 15th box, the underpayment penalty disappeared.

[ADE13]

If I’m using Turbo Tax online, can I get to the Forms method for Massachusetts? I too was able to complete Form 2210 for Federal with Annualized Income Installment Schedule, but it did not carry over to State and I am not able to remove underpayment penalty on State. 

[ADE13]

All set. I pretended that I had Additional Interest & Dividends in order to force an amount that I owed MA, then clicked through and finally saw the Underpayment Penalty page and hit calculate and penalty was removed. Then I went back and removed pretend additional amount.