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Level 2
posted Mar 21, 2022 9:18:21 AM

Form 2210AI calculation error for first 3 quarters

I have reported this problem 3 times to TTax support but they insist there is no problem.  So I manually printed the form from the IRS web site along with the "Qualified Dividends and Capital Gain Tax Worksheet".  This form must be used when it's appropriate (in my case) AFTER the quarterly values are annualized with the appropriate multiplier (4, 2.4, & 1.5).  The problem(s):

1. Quarterly entries for long term capital gains are not annualized resulting in an overstatement of the tax on line 14.

2. IT APPEARS that the quarterly values for qualified dividend income are being ignored but I cannot actually confirm this.

The overstatement of the quarterly tax payments due are causing an underpayment penalty to be computed when no actual penalty is due.  This error can potentially affect all users that have LTCG and AGI income.  Note that the year end (12/31/21) calculations are correct so you have to examine the actual quarterly values on form 2210AI to detect this problem.  

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1 Replies
Level 2
Mar 23, 2022 10:42:11 AM

Sorry, the statement "...that have LTCG and AGI income." should have read "...that have LTCG and/or QDI income.".

 

My apologies