2210 calculations?

Forum|Forum|3 years ago
March 26, 2023
2 replies
32 views

Hi, I am using the downloaded version of Turbo tax. I completed my 2022 taxes and submitted. I noticed that I owe a penalty which is shown on form 2210. Where does Turbotax get the information showing on this form? This form indicates not only what I owed in taxes each quarter in 2022 but also what I actually paid each quarter. How would Turbotax know what I actually paid each quarter? Does Turbotax get what my quarterly payments were directly from the IRS? This form shows that I paid $x in taxes in Q1. I didn't pay estimated taxes at all so I assume this number is taken from my actual payroll deductions for taxes? if so, the amount showing on the form is about 50% of what was actually deducted from my paychecks during Q1. This is resulting in a penalty..

DoninGA

Level 15

TurboTax does not have any way to know if or when estimated taxes were paid. There may be a carryover from the 2021 return that caused an amount to be entered for Q1. Go to the Estimates section and delete any entry that is incorrect and if you did pay any estimated taxes in 2022 enter those payments.

To enter, edit or delete estimated taxes paid (Federal, State, Local) -

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credits
Click on I'll choose what I work on (if shown)
Scroll down to Estimates and Other Taxes Paid
On Estimates, click on the start or update button

Or enter estimates paid in the Search box located in the upper right of the online program screen. Click on Jump to estimates paid

Federal estimated taxes paid are entered on Form 1040 Line 26

fanfare

Level 15

"I completed my 2022 taxes and submitted. "

you can amend your return if Form 2210 is filled out incorrectly.

e-File of 1040-X makes it much easier.

@Wupot

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ErnieS0

Level 15

Form 2210 will divide your income and payments into four periods unless you choose to annualize your income and payments.

Withholding is divided as if paid evenly throughout the year, unless you choose to annualize the amount.

Here’s how to annualize your income:

Type penalty in Search (magnifying glass) in the top right corner
Select Jump to penalty
Answer the questions until you see “Annualize Income Method.” Say YES and follow the directions to divide your income and payments.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

fanfare

Level 15

"if so, the amount showing on the form is about 50% of what was actually deducted from my paychecks during Q1."

It should be 25%, not 50%, and 25% for each of the other periods.

not clear why you single out Q1 ??

@Wupot

VolvoGirl

Level 15

@fanfare Just to clarify....not 25% of Q1 but 25% of the annual amount from W2 box 2.

@Wupot Do all 4 quarters show the same amount for withholding? And check the dates on 2210 for the quarters. They might not be calendar quarters. They might have different starting and ending dates. And each period might start from Jan 1.