TT 2021 Desktop Form 2210 wrong calculations

[tax4max]

In my copy of TurboTax Desktop 2021, TurboTax is calculating a penalty for late payment, on Form 2210 Part III - Penalty computation lines 10 to 19. However, the amount of estimated tax payments calculated as paid by July 15th is only taking into account the 1st quarter of 2021, ignoring payments made during the 2nd quarter of 2021.
Also, that part of the form itself seems to have been copied from 2020 and not updated, since it only has columns figured for payment dates column (a) 7/15/20, column (b) blank, column (c) 9/15/20, column (d) 1/15/21!

[ErnieS0]

You are right. Form 2210 has not been finalized for CD/Download. The form is expected to be final on February 24.

For the latest on federal forms availability see Federal Individual Form AvailabilityFederal Individual Form Availability.

[Mike9241]

you're  right the desktop deluxe form for 2021 does not conform to the IRS version 

[tax4max]

Is there any way around this or do I need to wait for a fix in the form calculation before I can file my federal return? It looks to me like the up to date for 2021 Form 2210 is available for download from the IRS website at this time.
Thanks.

[DoninGA]

---

@tax4max wrote:

Is there any way around this or do I need to wait for a fix in the form calculation before I can file my federal return? It looks to me like the up to date for 2021 Form 2210 is available for download from the IRS website at this time.
Thanks.

---

You need to wait for the Form 2210 to be finalized and available in TurboTax on 02/24/2022

[salilm1]

2210 is still calculating the wrong taxes in Annualized Income (AI) worksheet  Part 1 Line 14 tax calculation when using the Qualified Dividends Tax Worksheet.

It also not transferring line 27 from AI worksheet to Part 111 of Form 2210 line 10.

[salilm1]

line 14 is schedule A1 seems to calculate incorrectly

When using the 2210 A1 there are  IRS worksheets. These IRS worksheets are in Publication 505 Worksheets 2-7 and  4 copies of Worksheet 2-8. These worksheets are used when your income varies through the year and you have to use the annualization process.

All the periods, Line 14 entry   is calculated using  one of the your copies of the Worksheet-2-8.

When you figure line 2,3,5,6 on worksheet 2-8 note how you have to enter at the top.

Note. To figure the annualized entries for lines 2, 3, 5, and 6 below, multiply the expected amount for the period by the annualization amount on line 2 of
Worksheet 2-7 for the same period.

You have to do this because line 1 is an annualized "taxable income" for that period.

[Tax4fp]

With respect to Form 2210 AI line 14 calculations, I can confirm that the calculations for at least columns (a) and (b) are wrong for me.  I ran some tests with a spreadsheet using the correct IRS worksheets and it appears that line 14, box (a) is incorrectly calculating the tax effect of LT cap gains and Qual dividends.   In my case, it appears that TT is incorrectly using the factor for box (b) (factor of 2.4) instead of the correct factor of 4 for box (a) for this calculation.  This appears to be a carryover of the 2020 calculation which combined income from the first two periods to assess underpayment penalties and would have used the column (b) factor.  Line 14 Box (b) also appears to have used the wrong factor which also resulted in a significantly higher number in box 14 (b) than it should if the calculation was done correctly per the Pub 505  IRS worksheets.  There may be other explanations for the bad numbers in line 14 (a)- (c), but since previous problems with 2021 Form 2210  line 10, box (a) were also the result of carrying over the 2020 Form 2210 calculation, it could be that line 14 is messed up in a similar way.

[Tax4fp]

TT update on 3/3/22 did not fix any of the errors in Form 2210.  Still not calculating line 14 (a)-(c) on Form 2210AI correctly and still using the wrong dates in step by step for annualizing withholding.  2021 TT Form 22210 is a piece of junk that TT isn't making any effort to fix and TT 100% accuracy guarantee isn't worth anything so they don't even try.

[BillM223]

I believe I have reproduced the line 14 (2210AI) error and have submitted it for investigation.

@Tax4fp

[annoyed_user]

I've seen this bs type response on every thread concerning Form 2210 and Schedule AI errors for months and nothing has been done to fix them.  There will probably be another promised update that will be released weeks later than promised that will still be wrong.  What do you expect for a free program.  Wait... I paid over $100 for my version.

[Scooby19]

It amazes me that the IRS hasn't intervened and shut down TT yet over these errors.  There are many in their program---2210AI is only the tip.  

[ftcbski]

It's great .... We pay for the product and then spend weeks trying to convince them that it has errors. QUALITY! Time to move onto a different product.

[Tax4fp]

The problem with line 14 (a)-(c) is related to how TT Form 2210AI scales (QD) and doesn't scale (CG) factors to calculate the impact of CG/QD.  This is wrong and not consistent with IRS Pub 505 worksheet 2-8 which would scale both.  I ran several tests in TT Form 2210AI where I scaled column (d) inputs down by a factor of 4 and input these into the input locations for Column (a).  This results in the same value for total taxable income in line 13 (a) and (d), but different results if the scaled CG/QD income is input as all CG vs all as QD vs split as scaled from column (d).  As kevinandlori user noted, TT only scales QD, but not CG.  In my tests if all of the scaled CG/QD was input as QD, the results of 14 (a) matched 14 (d), but if it was all input as CG, the calculated tax in 14 (a) was 20% higher than 14 (d).  Using IRS Pub 505, worksheet 2-8 gave the same result for both 14 (a) and 14 (d).  Bottom line is that if someone has any CG in either of the first three periods, TT will not calculate 14 (a)-(c) correctly, because TT doesn't scale CG per IRS requirements in doing the tax calculation.  Fix your program TT.

[Tax4fp]

There is a way to get 2021 TT to correctly calculate line 14 (a)-(c) if you have any long term capital gains in the first three periods.  Simply enter the combined total of cumulative CG/QD into the inputs for QD and enter zeros in the LT CG boxes.  TT will then properly scale the total CG/QD by the respective period factors and produce the correct values in line 14 (a)-(c) that TT uses to determine whether an underpayment has occurred.  The specific breakdown between CG and QD is never shown in either Form 2210 or Form 2210AI that get filed when forms are printed and the IRS accepted a return that was e-filed with this tweak.  Use of this option should be considered if TT calculates that an underpayment is due in order to eliminate or reduce a penalty that TT has over estimated because of their failure to properly implement the IRS requirements in Form2210AI.