2025 Illinois Underpayment Warning - Calculation Bug?

[Vollpreuss]

I'm receiving a tax underpayment warning for my 2025 Illinois State Tax return.  The tax liability being presented does not include the 4 estimated quarterly tax payments made for the 2025 tax year.  I have a refund due when the estimated tax payments are considered.   Why am I being alerted to a potential underpayment?  Is this a calculation bug or?   For now, I'm going to skip the annualization method and take the let Illinois figure out any penalty (if any) to expedite my tax return.  

[MonikaK1]

Depending on all of the applicable facts, it's still possible to have an underpayment penalty even though you are receiving a refund.

Also, each state's rules may be different. For Illinois, if you:

• have a tax liability greater than $1,000 after subtracting your withholding, pass-through withholding payments, and credits, or
• were required to make estimated tax payments and failed to pay the required amount by the payment due dates, you may owe a late-payment penalty for underpayment of estimated tax. See Form IL-2210 for details.

Check to see whether all of the state estimated payments were entered. Navigate to the estimated tax payments section:

• TurboTax Online/Mobile: Go to estimated tax payments under Deductions & Credits.
• TurboTax Desktop: Go to the Federal Taxes, then Deductions & Credits. Select Estimates and Other Taxes Paid.
• Select Start or Revisit next to the type of estimated tax payment you'd like to enter under Estimated Tax Payments.

[Vollpreuss]

Thank you for the prompt and thorough response.  A bit to think about here.

To confirm, I did enter 4 Estimated Tax Payments for the Illinois return.  The running Illinois Tax Refund amount at the top of the screen included the 4 estimated tax payments. 

When I click Forms to understand the unexpected Tax Liability Balance being presented, I see the Tax Liability, all Payments, and an Overpayment amount.   There is no explanation or context provided for the displayed Tax Liability amount.  Thus, my original post.

The Underpayment Penalty screen seems to be following the logic of IL-2210 form which initially calculates a lability not including estimated tax payments.  (Line 5 result.)

I am of the strong opinion this screen needs improvement such that direct support and explanation is provided for the displayed Tax Liability amount, so the user doesn’t have to wonder and calculate like me. 

Thanks.

[AmyC]

We at Intuit TurboTax want our users to be completely delighted with their experience using our products and services, and successful in their financial lives and businesses.

Once you file your return, as long as the settings to receive communication from Intuit don’t block it, you will see a pop-up message or receive an email with a survey asking you about your experience. We encourage you to leave your notes and comments there. “Voice of the Customer” notes and comments are read and acted upon. 

If you are using TurboTax Desktop, you can also leave feedback at the Final Steps tab.

[Mike9241]

if you are using the desktop app, you can switch to forms mode and review the entire Illinois return. 

You will be assessed a late-payment penalty for underpayment of
estimated tax if you were required to make estimated tax payments
and failed to do so, or failed to pay the required amount by the
payment due date.
You do not owe a late-payment penalty for underpayment of
estimated tax if
■ you qualify as a farmer for this year (check the box on Form
IL-1040, Line 34a);
■ you or your spouse were 65 years of age or older, and
permanently lived in a nursing home during this year (check the
box on Form IL-1040, Line 34b);
■ you were not required to file Form IL-1040 for last year (check
the box on Form IL-1040, Line 34d);
■ last year’s Form IL-1040 had a zero tax liability (Form IL-1040,
Line 14 minus Lines 15, 16, 17, 25, 27, 28, 29, and 30); or
■ this year’s tax liability (Form IL-1040, Line 14 (4.95% of Illinois taxable income  + recapture of any Illinois Investment credits -Form4255 minus: Lines 15 - income taxes paid to oither states 
16 - tax credits from Schedule ICR, 17 - tax credits from Schedule 1299c, 25 - Illinois taxes withheld, 27 - Pass through withholding from Ill K-1, 28 - pass through entity tax credit from Illinois k-1, 29 - Illinois earned income credit - Schedule IE/EITC , and 30 - Child tax credit from Schedukle IE/EITC) is $1,000 or less

https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/incometax/documents/currentyear/individual... 

you must complete Form 2210

However, you must complete this form if you
■ use the annualized income installment method in Step 6; or
■ choose to enter the actual amount of tax withheld in each
quarter in Step 2, Line 10a.
For more information, see Publication 103, Penalties and Interest for

what the instructions fail to mention is that if you owe more than $1000 after subtracting withholding taxes, you can use last year's tax if it is lower.

you also have the option of using the annualized installment income method on page 4 of the 2210

https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/incometax/documents/currentyear/individual... 
Illinois Taxes. To receive a copy of this publication, visit our website
at tax.illinois.gov.