2023 orm 2210 Schedule AI

[ibjim88]

I'm using TT Deluxe, BAA ver 2/23/2024, on a Mac mini M2, running  macOS Senoma14.2.1 (23C71).

On Form 2210, Schedule AI, line 14: TT is incorrectly calculating the tax due on the amounts in line 13 for the first three periods. Anyone encountering the same problem?

[BillM223]

The instructions for line 14 state: "To compute the tax, see the instructions for your tax return for the applicable Tax Table or worksheet to use. For example, Form 1040 or 1040-SR filers can use the Tax Table; Tax Computation Worksheet; Qualified Dividends and Capital Gain Tax Worksheet; Schedule D Tax Worksheet; Foreign Earned Income Tax Worksheet; Schedule J; or Form 8615, Tax for Certain Children Who Have Unearned Income."

So how is your regular 1040 tax being calculated?

It is common for taxpayers who have qualifying dividends and/or capital gains to not realize that their tax does not come from the tax tables. Please look at your return for a tax worksheet that describes how your tax is being calculated.

[fanfare]

Try Form 2210 Part II Option D and Part III

It is a much simpler calculation.

it may eliminate some or all of your penalty.

You can also choose Option A or B if qualified.

@ibjim88 

[ibjim88]

There seems to be an error in TT 2023 tax calculations for form 2210, schedule AI, part I, line 14.

These calculations use Pub 505, worksheet 2-8 (qualified dividends and capital gains W/S), for the values on line 13 which include qualified and non-qualified income. 

For the fourth period, the tax calculation is correct. For the first two periods, the tax reported on line 14 includes only that due for the qualified income. The third period has a more complex error. 

Last year TT correctly calculated these values for an income pattern much the same as this years. I'm using TT Deluxe, BAA, ver 2/23/2024 TTMac, on a Mac mini M2, running  macOS Senoma14.2.1 (23C71).

Thoughts? How should one report a possible "bug"?

[BillM223]

The first thing we have to do is reproduce the issue. If you would send us a "token", that would accelerate the issue. A token is a numeric entry into our data base that points to a sanitized copy of your tax return. The process of creating the token removes any identifiable personal data from your return so that we have no idea who you are.

To supply a token to us:

Online

• Log into your TurboTax Online tax return
• On the left, click on Tax Tools
• Under Tax Tools, click on Tools
• In Tools Center, click on Share my File with Agent
• TurboTax will give you a “token”, a 7-digit number
• Post the token number in this thread
• Be sure to add to that post “@” “billm223” (without the space in between) so that I will be notified

Desktop

• Open your return in the desktop product
• Look along the top and click on Online
• Click on Send Tax File to Agent
• TurboTax will give you a “token”, a 7-digit number
• Post the token number in this thread
• Be sure to add to that post “@” “billm223” (without the space in between) so that I will be notified

[ibjim88]

to: @BillM2

token: 1203534

BTW, send a file to TT agent is in the HELP menu.

Help

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TurboTax Help Center

Send Tax File to TurboTax Agent

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>

[BillM223]

Thanks for the token.

"BTW, send a file to TT agent is in the HELP menu.

Help

Search

TurboTax Help Center

Send Tax File to TurboTax Agent

ScreenShare Code

Switch product

>"

This must be because you are using the desktop software on a Mac. Thanks for this.

[ibjim88]

To: BillM223

Any progress on the T Y 2023, Form 2210, Schedule AI, line 14 (tax calculation) anomaly we have been working on? Although I sent you a token to examine my return two weeks ago,  I note no correction yet in the REV 03/07/24 TTMac desk-top update.

Thanks; from: Jim Burns; [phone number removed]; [email address removed]

[rhtt6293]

I seem to be seeing a similar issue in TT 2024 - No or minimal tax due in Q1-Q3 but Q4 seems correct.  In my case, I had a large Roth conversion that hit in 4Q that doubled my income. That said, even without the Roth I would have expected there to have been tax due based upon the annualization factors.  What was the final resolution of this and is it still present in the 2024 version?

[MarilynG1]

The Annualization Worksheet is to help you with your withholdings throughout the year and is not filed with your tax return.  If you had a large Roth distribution in 2024 as a one-time event, take your annual income without the distribution, divide by four for each quarter, to see whether you need to withhold more on your regular income so as not to incur an underpayment penalty next year. 

You can choose to let the IRS figure your penalty (if any, in your case) and bill you.  

Here's more info on Form 2210. 

@rhtt6293