There's a longstanding bug with TurboTax Desktop edition (may be online version also has this bug but I don't use it). For tax year 2022 My MA taxes withheld were less than the total MA tax I owed. So as part of the state interview TurboTax fills out form M-2210 to calculate the penalty for Underpayment of Massachusetts Estimated Income Tax. This forms takes into account both taxes withheld and estimated taxes I paid during 2022. If the calculation determines that the penalty is at least $1 everything works correctly and the completed form M-2210 is included with E-file'd return. However if the penalty ends up as zero because you paid enough estimated taxes form M-2210 is not included in the E-file and not printed or saved during E-filing step. Note even when penalty is zero M-2210 still needs to be included with the filed return if tax withholding alone didn't cover your tax liability and your remaining tax due is more than $400. This is particularly important when Annualized Income Installment Method is used since the state tax authority (MA Department of Revenue) has no information about your uneven income in each quarter. So even with zero penalty you still need form M-2210 filed (for remaining tax due over $400) to prove that your penalty is indeed zero.
How do I know M-2210 is not filed when calculated penalty is zero? First I noticed M-2210 is not included in the list of saved or printed forms when you go through E-filing process. Second after E-filing I called MA Department of Revenue and confirmed with them that my return did not include M-2210. So I had to refile my MA return by regular mail instead of e-file. I first noticed this problem in 2018 with my 2017 MA return. And this problem is still here in 2023! I verified that the bug is present for both annualized and non-annualized methods to determine if you owe a penalty.
Please fix this bug. Without the fix people who diligently pay estimated taxes to make sure the underpayment penalty ends up as zero can't e-file their MA returns with TurboTax especially when annualized method is used to achieve zero penalty.
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I just finished with TurboTax 2023 Deluxe and fortunately found the same problem described by “Wired” before initiating an eFile. Sadly, once again the list of included forms for filing in Massachusetts does not include my completed M-2210. The longtime “bug” described by Wired has not been fixed!
Because TurboTax 2023 doesn’t assemble the required forms properly, I will be mailing my Federal & State tax filings to ensure all required forms are included.
I am in the same boat.
Unfortunately, I did not know this bug and paid TurboTax to e-file my MA tax return (I am using the Desktop version and had to pay an extra $21.25 for a state e-file.)
Later, I found that my M-2210 form (including an annualized income method) was not submitted, and MA calculated a penalty for me.
I cannot amend using TurboTax either since the bug is still there, and I should print and mail my forms.
This is very frustrating, and TurboTax should give me a refund for my state e-filing!
Here is a link: How do I request a refund for my TurboTax product?
I also had this problem for tax year 2023. E-filed my return in February 2024 and just noticed an underestimated tax penalty posted to my MA TaxConnect account. I inquired with DOR and they conveyed that they did not receive Form M-2210 with my tax return transmission. I had to upload the form on the DOR site and they have now corrected my account. The form shows no estimated underpayments due to uneven income throughout 2023. Can someone from TurboTax confirm they are aware of this problem and it is being addressed as this appears to be an issue from at least tax year 2022 based on the above post. I hope this is fixed for 2024 reporting.
Do any of the TT Experts know whether the above problem has been fixed for Tax Year 2024?
I also had this EXACT problem for tax year 2024!! The MASSACHUSETTS TT software is not asking me what my income was in each quarter and what my actual taxes paid in each quarter were!! Hence, the PROPER penalty can not be computed !. (Form M2210 is thus wrong). Since my income is mostly at the end of the year and NOT distributed evenly, and TT assumes it is the same in each quarter, TT computes a big penalty instead of the correct value (of ZERO!!)
Can TT management get this fixed for MASSACHUSETTS residents, otherwise my recommendation is that if people have uneven income, they need to buy H&R Block (or equivalent) software instead of TT! Terrible. I really like TT in every other way but TT needs to fix this ASAP!! Spend the resources necessary to this important bug fixed!
I respectfully submit this to TT management as a critical area to improve your product
My 2024 TT Deluxe let me enter my quarterly income and calculated the MA ES penalty correctly. But the penalty came to 0 and so the form is not included in the filing package. I will be printing my M2210 manually and not e-filing this year..
It appears that the same bug is still present.
I just reviewed my first filing attempt and found form M-2210 included in the forms to filed.
This was also the first time I was the penalty. Turbo Tax Home&Business did not alert me to the penalty, nor did it offer any option to deal with it.
After I entered the annualized income (about 50% of my annual income arrives in December), the penalty went away.
But form M-2210 now also disappeared. Which means that Massachusetts will now assess a penalty because the annualized income is not transmitted.
Come on TurboTax, this is embarrassing!
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