My wife is an independent contractor (videographer) under her social and not an EIN. She has not paid quarterly estimated taxes. We have set money aside to pay at the end of the year with our return. Our net return is negative 2,000 and we want to understand how do we pay this and how do we avoid a fee. We were married last year and this is our first time filing jointly.
Most research shows that she has to pay quarterly taxes no matter what but I know people who pay at the end of the year without paying a fee. I'm talking about people who are independent contractors using their social and not ein and there is no business name or entity.
We have the money set aside and we want to make the payment now. Do we need to wait until 03/17/2022 for form 2210 to become available? Do we need to wait to receive a letter from the IRS saying what we owe?
This is her first year as an independent contractor and has not had other taxes to pay in the previous year. Does the safe harbor rule apply here or no?
I appreciate any advice.
Thank you!
Yes, you should wait until after Form 2210 is available to file.
Form 2210 is used to determine whether or not you have to pay a penalty for not making estimated tax payments. If you normally get a refund, it is likely that the penalty will be waived with your Form 2210.
As far as whether you have to make estimated payments, it is voluntary, but you may be charged a penalty if you don't.
You should wait until after Form 2210 is available to file your return, but you can pay the taxes sooner if you want to. The IRS has several payment options on their website.
Yes, you should wait until after Form 2210 is available to file.
Form 2210 is used to determine whether or not you have to pay a penalty for not making estimated tax payments. If you normally get a refund, it is likely that the penalty will be waived with your Form 2210.
As far as whether you have to make estimated payments, it is voluntary, but you may be charged a penalty if you don't.
You should wait until after Form 2210 is available to file your return, but you can pay the taxes sooner if you want to. The IRS has several payment options on their website.
My 2210 did not include my estimated tax payment on 6/14 in the now-modifed period 1and therefore says I have a penalty. I believe TT is fixing this (as they did last year with similar problem). Right now my 2210 for says DO NOT FILE on top and shows a red exclamation point in the forms index and (not done) afterwards ?
I that because the corrected form is not yet available OR does my return have something else going on ?
@RC519 This is probably because the IRS Form 2210 is not yet available. This form will be available on 02/17/2022.
If it's a State Form 2210 that you're referring to, you'll need to check your specific state for the availability date. Visit the following Help Article and click on your TurboTax product, then click on View availability next to your state to view the forms availability table for individual tax returns: State forms availability table for TurboTax individual ..
Getting more confusing .. I am asking about the Federal (not state) and I apologize for not being clear. The post I replied to had 3/17 for a date and you replied with 2/17 and indicate it's the IRS form that isn't available ? I assume you mean integrated into TurboTax software ? My situation is the form on TT was not populated correctly, it failed to include an estimated tax payment on 6/14 into the now-modified first period (Jan-thru-June). I reported this problem to TT last week and was given a 2/24 date and a listing of mods that also had a 2/17 date shown for the 2210 (in addition to the 2/24). It seems my 2210 acquired this red exclamation point when I attempted to use it (via the software) so I just want to make sure mine isn't corrupted so when a fix comes out I am still "no good" because my file is corrupted. Hope I wasn't even more confusing. Please Advise. Thanks
This is a known issue that we are working to resolve. You can sign up for progress updates in the below TurboTax help article.
2021 Turbo Tax desktop does not properly take into account all estimated tax payments entered when calculating underpayment penalty for 2021. When the form 2210 is pulled up it says 2021 on the form but the overpayment and underpayment calculation columns still show 2020 due dates of 7/15/20, 9/15/20 and 1/15/21. When it does its calculation of underpayment penalty it does not count the 6/15 estimated tax payments in its calculation for the 7/15 period. The use of a 7/15 period is wrong for 2021 as all estimated payments are due back to original due dates as the 7/15 period was a one-time exception during COVID to defer estimated taxes due date for 1st and 2nd quarter to 7/15/20. See IRS form 2210 for 2021 on IRS web site. This error is creating an underpayment Penalty that is not really due and is preventing me from electronically filing a correct tax return. I explained all of this to support, and my case number is [phone number removed]. Please let me know if this is being worked on and when it might be resolved. Also please alert me to any work arounds that might still allow me to file electronically without this being fixed.
My issue is with line 11 of Part III Section A (not 18-26).
It's not adding all of the applicable estimated payments and withholdings for the larger first period (Jan-June). Hopefully this too is a "known issue" and will be fixed with the 2/17 update ?
As explained above,
Form 2210 is scheduled to be ready in Turbo Tax on Feb 17 (moved up from March). So if it wants you to fill it out you have to wait a couple days.
Federal tax form Availability table
As explained above .. really ?
Fixing lines 18-26 doesn't explain the problem on line 11. What am I missing ?
Also TT support suggested this fix (the one I'm talking about) may not be fixed until 2/24 update.
I do think the dg99nelson explained the problem much better than I .. I was thinking the periods
were supposed to be combined again like last year and by not including my Est payment from 6/14 its producing an under payment error.
I'm trying to get the correct answer & assurance they are also going to fix line 11's calculation.
Thanks
OK, I got the update this morning and there's still a problem on Line 10. The required installment for the first period is 1/2 the year's taxes. .. should be evenly distributed over the four periods. I'm referring to the 2210 form when I select box C in part 2 and choose to annualize. Even tho my income DID vary significantly during the year, IF I don't select box C .. the system uses the correct amounts for req'd installments and taxes paid are adequate to make penalty go away (with withhold evenly distributed). I do feel like I should be checking box C as it's the reason the 2210 applies AND it should be fixed. Please Advise
Should I call this in .. to TurboTax ? Or is this forum sufficient notification ? Maybe the line 10 fix is on the Feb 24 update ?
Please Advise
I am also having a problem with line 10 on form 2210. I am annualizing (I checked box C in part II) and line 10 should carry over the amounts from line 27 on schedule 2210 AI. But there's a problem with column (a) on line 10 because it carries over the total in both columns (a) and (b) of line 27 on schedule 2210 AI, not just the amount in column (a). Columns (b), (c) and (d) on line 10 are carrying over the correct amounts from line 27.
That's exactly the problem I saw yesterday, IF you annualize. If you were updated yesterday, you may want to go thru 'other tax situations' section as that's what I did and after that it changed. If I say 'no' for annualize and uncheck box C on form. Unfortunately, it still seems broken for those who annualize to calculate least amount of taxes due for each period.
My program was updated but I'm still having the problem. Hopefully, they will correct it with the next update.
I did see that there is another update for form 2210 on 2/24 .. so lets hope.
Program updates on 2/17/22 to form 2210 did solve the issues I was experiencing. thanks
Glad they got it fixed. I decided NOT to annualize since checking box C is not necessary in my situation. I paid enough estimated & w/h to avoid a penalty, so no need to "reduce or eliminate". Thanks
Just finishing taxes with 2/24 update. Now TT won't take me to 2210 "choices", since I don't have any underpayment which is fine. Oddly it still includes one with state (CT) even tho no underpayment exists. Figure I'll mail it in with return .. just seems weird.
Where do I enter auto-deposit (rtg/acct #) info.. I'm asking specifically for state (CT) which I am mailing in. I had to proceed down the path as if I was E-filing to get it done, didn't see any other opportunity.
What kind of forum is this .. where no one responds ? Am I doing something wrong ?
Where do I enter auto-deposit (rtg/acct #) info.. I'm asking specifically for state (CT) which I am mailing in. I had to proceed down the path as if I was E-filing to get it done, didn't see any other opportunity.
Were you able to successfully enter your bank account information on your federal return? If so, it should transfer to your state return. If not, please comment back.