2023 Form 2210 Date of Payment

[CycloneB]

Need some help in getting through a TurboTax Desktop error. I goofed in my understanding for my taxes this year coupled with a large bonus in the year. I owe an underpayment penalty and I understand how TurboTax is calculating it. Meanwhile, I went ahead and filed an extension and overpaid the remaining balance. This payment shows up in my IRS online account as processed on January 29th.

My difficulty stems in filling out Form 2210 either via interview or directly. For line D at the top, the form says "Enter the date the remaining taxes will be paid or 04/15/2024, whichever is earlier." When I key in 01/29/2024, the calculation for my penalty is updated, but TT flags the date in error and states "Date you'll pay the balance due cannot be before the current date." I have verified Schedule 3 line 10 shows my payment. So how do I get past TT flagging the date incorrectly?

[CatinaT1]

Were you able to solve your issue? 

If not, please call TurboTax Customer service.  Here is a link:  Turbo Tax Customer Service 

[fanfare]

f you paid in full with extension, there is no remaining balance so there is no date to be entered and you should not be getting such a question.

@CycloneB 

[CycloneB]

That’s what I thought. If I instead remove the date, the penalty jumps from about $30 to over $450 presumably because it then uses 4/15/2024 as the date for the penalty calculation. 

So far, I’ve been switching to forms mode, leaving the date as-is, and going to another form to flip back over to interview mode. I haven’t tried filing yet to see if TT will let me file with the field in red and Smart Check giving me that error. 

[fanfare]

Is the "amount you owe" zero ??

If not, why not?

@CycloneB 

[CycloneB]

@fanfare I owe nothing (looking at a $600 refund). But I still end up with a penalty since I should have done a Q3 estimated payment and didn’t. 

[fanfare]

Form 1040 reduces your refund payment by the amount of the penalty.

@CycloneB 

[CycloneB]

Correct. My problem is with the calculation of the penalty. I putting in the date of my extension payment as the date that my taxes due are paid. It calculates the penalty based on that date. However, TurboTax then complains the date cannot be in the past. Removing the date assumes the payment is on April 15th, not Jan 29th. It will, however, accept today’s date or a date in the future. That’s the TurboTax bug I’m trying to get help with since TT’s code is expecting the date to not be before filing via TT. 

[fanfare]

It's not a bug.

the payment with request for extension is not an estimated tax payment.

It is  considered as paid on Apri 15th if you file late,

You can still make a  late fourth estimated tax payment today or tomorrow.

That should help.

what happens when you enter today's date.?

@CycloneB 

[CycloneB]

Maybe I’m misunderstanding something. So even though I’ve filed for an extension via the fillable forms and I’ve already paid the extra due and it shows on my tax account, I should make it again and earmark it as an estimated payment? I paid it using one of the IRS approved payment suppliers via credit card. 

If I put today’s date on TT’s form 2210 (which I noticed isn’t on the actual form itself), the 2210 penalty details form in TT recalculates from 1/29 to today’s date (resulting in a different penalty), but TT doesn’t complain on form 2210 itself about the date. Either way, I end up with a refund because I overpaid the extra tax due by $1k in case of any math errors (I hadn’t received my last 1099-INT yet). 

Using the fillable forms and the instructions/worksheet for 2210, calculating things by hand match up the 2210 penalty details form in TT. 

@fanfare 

[fanfare]

the payment with request for extension is not an estimated tax payment.

The penalty is for underpayment of Estimated Tax.

@CycloneB 

[CycloneB]

Ok, gotcha on the extension payment vs. estimated payment. I'll make that payment today.

For the sake of argument, let's say I had not made an extension payment and did indeed make a late estimate tax payment on 1/29. I am still confused on how I provide this to TurboTax.

I went through the TT interview for estimated payments and filled in the late payment on 1/29. Going to Forms mode, I see it on the "Tax Payments Worksheet" line 5 (with a 1/29/2024 date). When I go back to Interview mode and go through the Underpayment Penalties interview, I'm ending up basically at my original issue.

I get to the screen titled "Date of Payment". It says "Enter the date you paid or will pay your balance due. We use this date to determine the underpayment penalty amount you'll be charged. If the balance due won't be paid before the extended filing deadline of this return, you can leave this blank." Well, with a late estimated payment, I did pay it before the filing deadline. However, if I put 1/29/2024 on this screen, I again get "Date you'll pay the balance due cannot be before the current date".

The difference I in behavior I'm experiencing here is that the 2210 penalty worksheet changed and having/not having the date only results in a $8 penalty calculation (b/c it does/does not remove the 4th payment penalty). But I'm still stuck with the original error message that I opened this thread for. I'm at a loss how that would be reconciled in TT or how that isn't a bug if on the same screen it even indicates past tense "date you paid".

@fanfare 

[PatriciaV]

To correctly report your January payment, enter this information under Estimated Taxes >> Federal estimated taxes as an Additional Payment (bottom of screen). This input area allows you to report any payment amount and date. The amount you enter here will carry over to Form 1040 line 26 and reduces the tax you owe (if any).

@CycloneB

[RyanK]

So i have the same situation as the OP. I can do as you say, add an additional payment, but then 1040 line 31 is overstated by the additional payment amount. That amounts comes from Sch 3 line 10 "Amount paid with request for extension to file". This seems like a clear bug in the software to me. I don't see how it isn't.  I have to not put an inaccurate amount on line 10 of Sch 3 to account for the amount I added to 1040 line 26. 

[RyanK]

You can see in the image... I have ENTERED THE DATE I PAID! But Turbo Tax won't let me do that. But that's the fact pattern... 

In reality, I did all this back on 3/26/24 but i filed an extension. Now that I have all my K-1's I am trying to complete the filing. But this one box prevents me from filing my tax return.

Yes - I had to check box D to make my withheld taxes be as of date withheld when calculating the late penalty.