Form 2210 is populated in TT and printed prior to filing and I don't know why

[Wedding5500]

Good Evening,

When I went to print my Mom's return (before filing it), for the first time ever, Form 2210 printed out.  I have no idea why it thinks she underpaid her Estimated Taxes.  

1st qtr payment was for $1,300 and the other 3 were for $2,290 each.  My Dad passed in July 2024 and after I was able to prepare the IRS Tax Withholding Estimator, I realized I needed her to make the remaining 3 payments much higher  All were paid on time.  The IRS lost her 1st qtr payment and over a month ago they started a "hard trace" but still haven't found it.  But TT wouldn't know that...so that's not it.

$9,132 was taken out in 1099s

$8,170 was paid in quarterly ES payments

so she made $17,302 total in federal tax payments

She's getting a small refund, so how could TT think she underpaid?  Please explain this to me like I'm 5 yoa because I'm *very* confused.

If this F 2210 is accurate, what do I need to do so this does not happen next year?

As always, I appreciate all of your help and expertise...thank you!

[MonikaK1]

If you see an underpayment penalty on the return, you can review it in TurboTax and see if it can be reduced. For example, you can choose to use the Annualized method of the income level fluctuated during the year. 

It's possible to have a penalty calculated even if the entire tax liability was paid before the return due date, depending on the amounts and timing of the quarterly payments.

To review underpayment penalties, in TurboTax Online:

1. Open return and choose Other Tax Situations
2. Choose Underpayment Penalties
3. If asked "do you want to review estimated taxes" choose Yes
4. If a penalty was calculated, you should see the option to annualize to possibly reduce penalty

Form 2210, Underpayment of Estimated Tax, is only required to be filled out by the taxpayer in certain situations:

• A You request a waiver (see instructions) of your entire penalty. You must check this box and file page 1 of Form 2210, but you aren’t required to figure your penalty. 
• B You request a waiver (see instructions) of part of your penalty. You must figure your penalty and waiver amount and file Form 2210. 
• C Your income varied during the year and your penalty is reduced or eliminated when figured using the annualized income installment method. You must figure the penalty using Schedule Al and file Form 2210. 
• D Your penalty is lower when figured by treating the federal income tax withheld from your income as paid on the dates it was actually withheld, instead of in equal amounts on the payment due dates. You must figure your penalty and file Form 2210. 
• E You filed or are filing a joint return for either 2024 or 2025, but not for both years, and line 8 above is smaller than line 5 above. You must file page 1 of Form 2210, but you aren’t required to figure your penalty (unless box B, C, or D applies).

See this TurboTax tips article for more information about Form 2210.

You can also have TurboTax prepare estimated payment vouchers for the 2026 tax liability. To calculate estimated taxes and prepare Forms 1040-ES in TurboTax Online:

1. With your tax return open, search for 1040-es (be sure to include the dash) and select the Jump to link
2. Answer No to the question Do you want to change your W-4 withholdings for 2026?
3. Answer the questions about things like your 2026 filing status, income, and deductions
4. Eventually, you'll come to the Print Vouchers? screen. Answer Yes and we'll include your 2026 1040-ES payment vouchers when you print a copy of your return later 

In TurboTax Desktop, select Other Tax Situations, then Form W-4 and Estimated Taxes. 

In addition, TurboTax's TaxCaster is available without opening your return and will estimate your total taxes. It is currently set to calculate 2025 taxes but you could use your 2026 estimated income and deductions to get a good estimate for 2026.

You can also use the IRS Withholding Estimator to calculate amounts to be withheld from wages.

[Wedding5500]

@MonikaK1, thank you for your response.

There's no Estimated Tax Penalty listed on Line 38 of her return. The right side column is greyed out.  Will the IRS send her a letter after I file her return?  

Box E of Part Part II is checked. In 2024 she filed MFJ with my Dad and this year she has to file Single since he passed in 2024.I don't understand *why* this form was generated - she paid her ES tax payments on time for all 4 quarters, and doesn't owe on her return - she's getting a small refund of approximately $400.  So I don't understand *why* it's saying she underpaid her estimated taxes.  Can you explain?

Thans so much.

[MonikaK1]

You are welcome! If Form 2210 doesn't show a penalty on Line 19, and therefore there is no penalty on the 1040 Line 38, then there is no cause for concern. The form provides the calculation to determine whether there is a penalty. As I stated earlier, it's possible to have a penalty even if there is no tax due with the return, if estimated taxes are required and any of the installments was late or an insufficient amount.

The 2210 doesn't need to be included with the tax return unless you checked a box in Part II, for example, to request a waiver or to select the annualized income method of calculating the penalty. If you did, using that calculation method probably eliminated the penalty.

See this TurboTax blog article for more information.

@Wedding5500 

[Wedding5500]

@MonikaK1 ,

I didn’t annualize her income.  She’s 89 years old, retired, and receives a couple of pensions, dividends, and interest on CD’s.  She paid all estimated taxes on time.  I still do not understand WHY TT/IRS thinks she underpaid her ES taxes since she’s getting a refund.

TT automatically checked Box E.  She filed a joint return in 2024 with my Dad. This year she’s filing Single.  Line 8 is smaller than Line 5.  It says that she must file page 1 of Form 2210, but she isn’t required to figure her penalty (since boxes A-D are NOT checked.

Line 38 on her return is blank. The right side is greyed out.  So I don’t know if she will owe an underpayment penalty and the IRS will figure that amount and send her a notice, or whether she truly doesn’t have a penalty.

Thank you.

[MonikaK1]

If line 9, the required annual payment, is more than line 6, you may owe a penalty, but don't need to file Form 2210 unless one or more boxes in Part II of the form applies. 

If you wanted to select to use the annualized income calculation method, then TurboTax would lead you through the steps to calculate the penalty if one applies. Otherwise, the IRS will calculate it for you, or you could use the Form 2210 and Part III and the IRS Form 2210 Instructions if you wanted to calculate the penalty yourself. 

@Wedding5500 

[Wedding5500]

Yes, Line 6 is more than Line 9.  I may figure out the penalty before  I file her taxes and see what we're potentially looking at.  If not, I'll wait for them to send a letter if she owes a penalty.

Thank you for your help!