Annualized Estimated Tax for 2025

[Rickey3]

I am using the Annualized Estimated Tax option to compute my estimated taxes for 2025. I've used the methods from publication 505 to compute my annualized Estimated Taxes on Worksheet 2-7. Once this is done, Form 2210 has to be completed for filing with my 2024 tax return.  The problem is there is currently no 2025 version of Form 2210, only a 2024 version, which of course has all the dates wrong and a different computation sequence than Worksheet 2-7.  How should I proceed?

[MindyB · Accepted solution]

Form 2210 for 2025 is not to be filed with your 2024 return.  It will be filed with your 2025 return.  The purpose of form 2210 is to figure the underpayment penalty.  You will not know what your 2025 penalty is (if any) until you complete your 2025 return. Here's an article you may find helpful: What is Form 2210?

For now, all you'll do for 2025 is prepare and pay estimates (1040-ES).

If you'd like to update how estimates were computed in TurboTax Online, here are the steps:

1. Navigate to Federal Taxes > Other Tax Situations
2.  Go to Other Tax Forms
3.  Start or Revisit Form W-4 and Estimated Taxes
4. Continue past the W-4 section to get the estimated tax section, Estimated Taxes for 2025 
5. You will be asked if you want to adjust  your income or deductions, answer yes, if so, and manipulate the answers to adjust income and/or expenses as you see fit.

[Rickey3]

Got it!  When I read the instructions the first time I thought Form 2210 had to be filed with the 2024 return!  All makes much more sense now! Apparently you just pay the estimated taxes from line 32 of  Worksheet 2-7 on schedule and then report your penalty computations (if any) on the 2025 Form 2210 submitted with your 2025 Tax Return.  Although I understand you can amend your estimated taxes along the way, just not retroactively.