Indiana 2210A Manual Entry

[JimP5]

My state return is telling me I owe a penalty because I did not withhold enough state taxes. TT thinks I have a withholding deficit in the first two periods (1/1-3/31 and 4/1-5/31) because 2210A assumes my first period (1/1-3/31) withholding is 1/4 of the total year's withholding, which is incorrect. In fact, my first period withholding is more than twice the minimum required, creating an overpayment balance that really should be carried over into subsequent periods (as IRS 2210A allows). It doesn't appear that EasyStep asks about withholding per period and TT won't allow me to directly edit lines 20 and 21 in Form IT-2210A. How do I tell TT what was withheld per period? Thank you very much.

[ErnieS0]

TurboTax allows you to annualize income for purposes of computing an underpayment penalty on your Indiana Income Tax Return. However, the program defaults to equal installments (25%) of withholding for each period.

Your only option is to override line 20 on IT-2210A. This will prevent you from e-filing and will void the TurboTax 100% Accurate Calculation Guarantee.

[JimP5]

Thank you very much for the quick reply. I appreciate the guidance. Indiana Form IT-2210A provides these instructions for Line 24:

"Installment Period Overpayment: If the total payment (line 23) is more than the required payment due (line 19) for an installment period, enter the difference on this line. This amount should then be added to line 22 in the next column after subtracting any underpayment(s) shown on line 25 in the previous column(s)."

When I override the amount withheld, per your instructions, TT does indeed follow the instructions above, so all is good. Unfortunately, as you say, overriding voids the TT Accurate Calculation Guarantee. The best answer seems to be that TT either asks for withholding amounts per period in EasyStep (similar to how it asks for AGI and credits per period), or allow the fields on IT-2210A lines 20 and 21 to be edited without voiding the guarantee. Can you file this request or do I need to make a separate request?

Thank you again.

[cjw2001]

TurboTax totally botched both the Federal and Indiana Form 2210 Annualized methods resulting in incorrect penalties on both when none was owed.  I've decided my best option is to not use TurboTax since it can't handle these tax forms correctly.  I'm filing on paper this year.  I see no reason to give TurboTax money to do my taxes incorrectly.