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Forn 2210 Penalty

I sold about $100K of a mutual fund in November and TurboTax Form 2210 is prorating the sale it over the entire year resulting in a penalty for not paying a sufficient amount of estimated tax in each of the preceding three quarters to cover the resultant tax.  I didn't know I was going to sell the fund until November so why should I be penalized for not paying estimated tax to cover it in the first three quarters?

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5 Replies
IreneS
Intuit Alumni

Forn 2210 Penalty

Since your total income from the year was irregular because of the sale of the mutual fund, you may want to try the annualized income method to lower the penalty.

To do this please follow these steps:

  1. While in your return, click Other Tax Situations.
  2. In the Additional Tax Payments, click the Start/Update box next to Underpayment Penalties
  3. When you cone to the Annualized Income Method screen, click the Yes box.
  4. On the Annualized Adjusted Gross Income screen, enter your cumulative income for each quarter.  Enter your year-to-date income in each of the boxes.
  5. Continue through the screens, entering the requested information.
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Forn 2210 Penalty

I have calculated using the annualized approach and it doesn't change the outcome.
edalee22
New Member

Forn 2210 Penalty

Does TT Deluxe have form 2210 available?

Or does TT Premier have form 2210 available?

How much does each version assist in completing the form?

 

Thanks, Edale

edalee22
New Member

Forn 2210 Penalty

Which versions of TT has form2210 available?

MaryK4
Employee Tax Expert

Forn 2210 Penalty

Yes, the 2210 is available for all TurboTax.  Go to Other Tax Situations and do the section "Underpayment Penalties".

 

@edalee22

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