Do I need to file IRS Form 2210 for 2017?

[TurboLover2]

I paid 4 equal estimated tax payments on time by each estimated tax payment due date for 2017 estimated tax payments.

Each payment exceeded 1/4 of my total tax liability for 2016.

Therefore I do not owe any underpayment penalty on my 2017 tax return

Note however, that each payment was less than 90% of 1/4 of my total 2017 taxes liability.

 I know I don’t owe any penalty, but my question is whether or not I need to file form 2210 and if so what parts of it.

 I don’t think I am supposed to check Box A. of Part II form 2210 am I?  I am not requesting a waiver of the penalty because there isn’t any penalty. I don't think this Box applies to my situation and therefore I don't need to file any part of form 2210.

I hate leaving the penalty amount box "empty" and letting the IRS calculate what I already know is no penalty.  But I think this is what I am technically supposed to do with the above facts.

Is this correct?

[jterry]

I do not pay quarterly estimated tax, employers pay me employment taxes?

[LisaBr · Accepted solution]

TurboTax is a computer program that picks up on information from the interview sections and sometimes what is put there generates issues that cannot be removed in the interview session.  It becomes "written in stone".  In order to correct, we must delete as forms along with worksheets and related forms.

Form 2210 is IRS form that relates to Underpayment of Estimated taxes.  You are not required to complete it since the IRS will figure the penalty, if any, and let you know if you owe anything additionally. 

1. Go to My Account
2. Select Tax Tools, then Tools.
3. Choose Delete a Form
4. Find Form 2210 and select to Delete. 
5. As a step to be sure the form has been deleted, run through step 4 once more to be sure that form was deleted as well as any related worksheets or forms. 

I've attached a link to the actual form so you can verify that the IRS does not require completion:

https://www.irs.gov/pub/irs-pdf/f2210.pdf

[TurboLover2]

Thanks.  That's a great answer to some question, but not the one I asked.  My question wasn't about how to delete Form 2210, I already figured that out.  It was about whether or not I actually need that form.

To your comment... Part of what is and should be expected from TT is for it to generate the proper forms.  That means all forms that are required to be filed should be generated and all forms that are not should not be generated.  The user should be able count on being able to file the proper forms after using TT to prepare their return.  If there are any areas that are "unclear" about whether or not a form should be filed, I think the user should expect that TT will take that up directly with the tax authorities for clarification and build in the appropriate logic that generates the right forms.  The user doesn't have the same access to the tax authorities to be able to determine this as Intuit does so they reasonably assume that TT gets it right after experts build it into the program.

That being said, yes of course the user can enter data in a way that was not intended by TT developers that will cause the misgeneration of a form.  And of course there can also be a bug that needs to be fixed that causes a form to be generated when it shouldn't.  From what I am reading, such a bug may in fact exist in the current version of TT with respect to this form since there seem to be a lot of people seeing the form when they did not expect it.  Else maybe there is something in the program that is leading people to enter data incorrectly.  Either way, whatever the cause, hopefully that can be resolved.

Having said all that, what I am trying to determine is whether or not I actually need form 2210 since it does not seem like I can count on TT to reliably let me know if I do or not at this time.  So I am going beyond the question of the use of the program looking for an answer based on tax preparation knowledge rather than knowledge of how the program works.

[DianeW]

@TurboLover2 If your underpayment was less than $1000, you do not need the form. If the total tax you paid through estimated payments plus federal withholding for the year is at least 100% of last year's total tax or 90% of this year's total tax (line 63, Form 1040) then the form is not required to be filed.

[Kathy4]

There is an exception to what TurboTaxDianeW says.  If the taxpayer's AGI for 2016 was more than $150,000 then to avoid penalty, the estimated payments would have to be at least 110% of the 2016 tax liability to avoid an underpayment penalty for 2017.  I found that in the instructions for Form 2210.