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New Member
posted Mar 15, 2024 7:38:37 AM

2210 Logic software error

The software logic for Turbo Tax in Form 2210 does not work properly as I had made an overpayment during 2022 and the software still calculated a penalty?  My estimated tax payments during the year were more than the actual taxes due by quarter so even if the software were to skip Part I of Form 2210 and go to Schedule AI Part I the calculation is still incorrect.  Called help desk and they weren't helpful.  

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Expert Alumni
Mar 16, 2024 11:53:20 AM

For most filers, if your federal tax withholdings and timely estimated payments are not equal to 90% of your current year tax, or 100% of the total tax from the prior year (whichever is less), then you may need to complete Form 2210 to determine if you are required to pay an underpayment penalty. You might double-check the dates of the estimated tax payments entered.

 

If your current year total tax minus the amount of tax you paid through withholding is less than $1,000, you are not required to pay the underpayment penalty and do not need to complete Form 2210.

 

If TurboTax is showing an underpayment penalty on your return, visit or revisit the Underpayment Penalty section under Other Tax Situations and answer the interview questions. The penalty calculation may change based on your answers, including information about when your withholding was applied. In addition, if you believe you qualify for a waiver of the penalty, you can request a waiver in that section.

 

The IRS may reduce an underpayment penalty if any of the following apply:

The penalty for underpayment of estimated tax can also be removed to the extent that the underpayment is the result of a casualty, local disaster, or other unusual circumstance such that it would not be fair to impose the penalty.

 

See here for information about different TurboTax tools you can use to calculate withholding and estimated taxes