This problem (identified in title) was posted yesterday on the Bogleheads forum (https://www.bogleheads.org/forum/viewtopic.php?t=449881 ). Apparently, the TT Help Desk eventually acknowledged the bug and will plea to higher ups to fix it.
I am hoping someone from TT will respond to this post and indicate when the bug will be fixed.
On the Federal Form 2210, the total annual income that is divided throughout the year is the Adjusted Gross Income (AGI) shown on the Federal return. On the MA Form 2210, the total annual income that is divided throughout the year is the sum of the total taxable 5% income (from Form 1 line 21) and the taxable long-term capital gains (from MA Schedule D line 21).
These amounts are not the same, so the user must enter the breakdown for the annualized method on both the Federal return and the MA return in order to use that method to reduce the underpayment penalty.
[edited 3/11/2025 | 6:45 am PST]
Any feedback from TT would be appreciated. This bug needs to be fixed ASAP.
On the Federal Form 2210, the total annual income that is divided throughout the year is the Adjusted Gross Income (AGI) shown on the Federal return. On the MA Form 2210, the total annual income that is divided throughout the year is the sum of the total taxable 5% income (from Form 1 line 21) and the taxable long-term capital gains (from MA Schedule D line 21).
These amounts are not the same, so the user must enter the breakdown for the annualized method on both the Federal return and the MA return in order to use that method to reduce the underpayment penalty.
[edited 3/11/2025 | 6:45 am PST]
AnnetteB6,
Everything you say is correct. However, there a problem with TurboTax Massachusetts code.
There are a lot of hits about this problem, if you Google.
The problem is that after you complete "Part 3. Annualized income installment method" on MA Form M-2210 in TurboTax and the results show you do not owe any penalty (the reason for completing the form), TurboTax does not efile MA Form M-2210 because TurboTax incorrectly believes that because you won't incur a penalty, TurboTax doesn't need to include MA Form M-2210 in the efile and doesn't.
If the MA Form M-2210 is not included in the efile, the Massachusetts DOR assumes uniform income and withholdings. The reason M-2210 needs to be included is to inform the MA DOR that you had uneven income and withholdings. Without MA Form M-2210, the state has no knowledge of your uneven income.
My refund was less than what TurboTax showed to be my refund because the MA DOR penalized me by $55 for underpayment, which would not have been the case if TurboTax had included the MA Form M-2210 I completed in TurboTax.
AnnetteB,
When I wrote in my previous post "Everything you say is correct," I was wrong. Your first sentence "Information from the Federal Form 2210 is transferred to the MA Form 2210, except for the case where the annualized income method is being used " is patently false.
There is no data on IRS Form 2210 that would be appropriate to be transferred to MA Form M-2210. The taxable income can be different. Probably the most common difference between IRS income and MA income is that the IRS can include up to 85% of one's Social Security income. MA does not tax Social Security income. Also, the total tax and prior year's taxes would be different as well as federal withholdings and estimated payments.
In fact, TurboTax does not transfer anything from IRS Form 2210 to MA Form M-2210.
You are right, I will correct the earlier answer. On another note, the issue that was described regarding the MA Form M2210 not being included with the tax return when the annualized method has been used to reduce the penalty was submitted to the development team for further investigation. It is too early to have any updates, but it has been submitted.