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Level 5
March 30, 2024
Question

Form 2210 Underpayment Penalty

  • March 30, 2024
  • 6 replies
  • 49 views

When I calculate my taxes I'm told that there is no underpayment penalty yet form 2210 shows up and says that I do.  I had a home sale late in the year so estimated taxes to account for the home sale could not be anticipated, i.e., estimated.  I can check box A in part II on 2210 to waive the entire penalty but then I'm told that I cannot eFile.  Should I simply not file the 2210?

    6 replies

    freddytaxAuthor
    Level 5
    March 30, 2024

    Actually, I had TWO late in the year sales. 1) the home sale and 2) a large stock sale.  I paid my taxes throughout the year concerning my income from my employment.  The tax software does not know this.

    freddytaxAuthor
    Level 5
    March 30, 2024

    The tax software does ask for the sales dates for both the home and the stock.  Is the software smart enough to see that those sales were late in the year (and therefore not expect estimated tax payments throughout the year)?  That would be VERY clever!! 🙂

    freddytaxAuthor
    Level 5
    March 30, 2024

    Is it better to check box C in part II of 2210?  This more accurately describes my income for 2023.