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How to address 1st quarter estimated tax extension (federally approved) to avoid underpayment penalty

I paid the first and second quarter 2021 estimated tax payment on 6/15/2021 due to the federal extension of the deadline to 6/15/2021 for Texas counties affected by the winter storm.  I entered the total amount paid on 6/15/2021 with no entry for 4/15/2021 on the estimated tax payment interview screen.  Turbotax tells me I have an underpayment penalty.  But if I split the 6/15/2021 payment into 2 equal payments with half on the 4/15/2021 line and half on the 6/15/2021 line, the underpayment penalty goes away.  Is there a place in the Turbotax Deluxe interview where I would answer something that would address this issue?  If so, where?  Or if not, does Turbotax Tax Deluxe program not take into account this federally approved payment extension?  How would I address this issue?  Thank you.

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1 Reply
ErnieS0
Expert Alumni

How to address 1st quarter estimated tax extension (federally approved) to avoid underpayment penalty

Enter your payments on the date paid and select that you want the IRS to figure the penalty.

 

The IRS says: "Certain estimated tax payment deadlines for taxpayers who reside or have a business in a federally declared disaster area are postponed for a period during and after the disaster.


During the processing of your tax return, the IRS automatically identifies taxpayers located in a covered disaster area (by county or parish) and applies the appropriate penalty relief.

 

Don't file Form 2210 if your underpayment was due to a federally declared disaster. If you still owe a
penalty after the automatic waiver is applied, the IRS will send you a bill.

 

2021 Instructions for Form 2210

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