I'm trying to re-enter the information for Underpayment penalties but it won't let me. I tried deleting form 2210, clearing cookies and cache, logging out and back in but it wont reset the section. Are there any associated forms or documents that I should also delete so I can start the Underpayment penalties section from scratch? Thank you
IRS Form 2210 (Underpayment of Estimated Tax by Individuals, Estates, and Trusts) calculates the underpayment penalty if you didn't withhold or pay enough taxes during the tax year. TurboTax will automatically generate a Form 2210 if your return needs it.
If you don't want the penalty computed then you can check the box for having the IRS figure the penalty. To Edit your entries:
It won't let me change the info I put in. I put zeros in for "2018 tax liability" and "2018 Adjusted Gross Income" and I need to change those amounts but it doesn't let me. It just says that I don't owe the penalty based on what I entered. So I'm trying to start the Underpayment Penalties section from scratch, but deleting form 2210 doesn't reset it. I'm wondering if there are any other forms that may be associated with form 2210 that I should delete as well so that I can start over the Underpayment penalty and enter new amounts.
We do not have access to your return on the community board, but from your question/statement you believe you owe a tax penalty, but TurboTax is not charging you for one? Typically, TurboTax will compute your Estimated Tax Penalty without you having to change information in the system.
Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed. Here is Figure 2-A from IRS Publication 505 which shows who is required to pay an estimated tax penalty.
Hopefully this helps...
When I first went through it, it had a spot to enter your previous years tax liability and adjusted gross income. It was auto-filled based on what I entered last year and said I owed a penalty, but the amounts were inaccurate because I didn’t complete my return fully on TurboTax last year. You could change the amounts so I put zeros in temporarily. But now I can’t go back and edit those amounts, now it just says I don’t owe the penalty when I revisit it.
Thank you for that information, you can change your Form 2210 by following these steps:
It doesn't ask for the amounts again, it says "Since your 2018 tax liability was zero, you might be able to avoid some or all of a penalty this year if you can answer yes to both of these questions: Did your 2018 return cover a full 12-month period?" and "Were you a U.S. citizen or resident in 2018?" Which I say yes to both and it says I owe nothing.
This is correct then. You won't be penalized for late payment of tax if your tax from the previous year was zero, even if you end up with a tax due.
My tax liability for 2018 wasn't zero though, I put zero in earlier and now I'm trying to change that but I can't get the Underpayment Penalties section to start over so that it asks for 2018 tax liability and AGI again.