kevinandlori, with respect to item 1,
"Failure to include 2020 refunds applied to 2021 taxes. 2020 refunds applied to 2021 taxes are not credited as tax payments in any column of Form 2210, Part III Line 11. (Part 2 Box C is checked, Box D is not). Instructions for Line 11 state they should be included: "Include the following payments: Any overpayment from your 2020 return applied to your 2021 estimated tax payments." For those that filed by April 15, the credit should be included in the first quarter for Line 11, but TT fails to include it in any quarter."
- If you had an overpayment from 2021, applied it to 2022, and filed your 2020 return on or before April 15, 2021 (even though is was not due to be filed until May 17, 2012), the overpayment amount is treated as a 2021 estimated tax payment made on April 15, 2021.
- Both Box C and Box D can be checked, if applicable. I'm assuming you did not check Box D because either (1) you did not have any tax witheld from income in 2021 or (2) you wanted 2021withholding tax allocated equally to the four installments. [Note, in my experience, as an employee, it was generally advantageous to check Box D, as any bonuses were usually paid in the the first quarter thereby inflating the Line 11 first quarter tax paid. Also, even with consistent income and withholding, tax withheld is likely to be greater in the first quarter estmated tax period as the period covers 105 days (1/1-4/15)]. Retirees with required minimum distributions (RMDs) from qualified pension plans and IRAs can reduce or eliminate estmated tax penalty exposure by taking annual RMDs during the first quarter. I don't know why checking Box D would have any impact on the timing of credit of a 2020 overpayment applied to 2021 on Line 11, but perhaps it worth testing whether there is any impact, understanding that, if you choose, you could allocate Line 11 withholding taxes equally (the IRS default rule).
Other TT users have obtained expected results after TT updates by re-entering all relevant step-by-step information. Although tedious, this process worked for me re the TT updates for Forms 2210 and 1116.
Unrelated to your question. For many years, I have made it practice to obtain an extension and file by the extended due date of October 15. With Form 4868, the goal was to cover any tax due plus the amount of any first quarter installment payments. Occasionally, it allowed me to spend additional time on issues that required review and correct errors on the originally filed return, rather than a messy amended return. Worked well until COVID effecyively shut down the IRS. In a threatening letter, the IRS said it did not receive my 1999 return. Fortunately, with the help of a certified mail receipt and the USPS Tracking System, I was able to provide evidence of timely mailing and actual receipt. Last year, my computer crashed just before October 15 and I ended up manually preparing 2020 returns. The latter experience made me appreciate the value of TT, despite recent declines in the quality of this important service.
