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Form 2210 - TurboTax calculates a penalty for CA resident even though IRS approved 2023 delayed estimated tax payment date of Oct 16, 2023 was met.

CA residents of many counties were allowed to delay paying their estimated taxes for 2023 Quarters 1-3 until October 16, 2023.  An estimated tax payment for Q1 - Q3 was made by that date.  However, on Form 2210 (and consequently Form 1040), TurboTax is calculating an underpayment penalty.  How should the estimated tax payment be entered in TurboTax to eliminate the underpayment penalty as the authorized IRS delayed payment date was complied with.

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2 Replies
dmertz
Level 15

Form 2210 - TurboTax calculates a penalty for CA resident even though IRS approved 2023 delayed estimated tax payment date of Oct 16, 2023 was met.

You can eliminate the penalty by indicating that the total paid by October 16, 2023 was paid on April 15, 2023 since these payments are credited as if they were paid in April.

Form 2210 - TurboTax calculates a penalty for CA resident even though IRS approved 2023 delayed estimated tax payment date of Oct 16, 2023 was met.

Thank you DMertz very much for your reply.  Your suggestion does eliminate the calculated underpayment penalty by TurboTax, however if the return is e-filed won't there be a discrepancy with IRS records.  Specifically, the IRS received a payment representing Q1-Q3 estimated taxes on October 16, 2023, however the completed Form 2210 in TurboTax will indicate this estimated tax payment was made on April 15, 2023. 

 

Would it not be best for TurboTax to update the program to allow for entry of the actual date the estimated taxes were paid in conjunction with a new program Yes / No question asking whether the taxpayer was covered by the delayed IRS payment deadlines?   

 

Thank you again very much for your help.

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