How can I fix Turbotax's requirement I file IRS Form 2210 RE an underpayment penalty even though no penalty owed and the form’s Part 1 states I need not file it?

[nontronite]

Dear Sir or Madam:

Turbotax is wise and helpful.  I have a problem, however, in that it claims I must file Form 2210 “Underpayment of Estimated Tax by Individuals, Estates, and Trusts”.  This is so even though Turbotax concludes that Form 2210 states that I owe IRS no underpayment penalty.  Turbotax, too, won’t let me e-file because it claims there are errors in my filling out the section on Form 2210.  

I suppose Turbotax determined I owed no penalty by its filling out Form 2210 and its Part 1.  I did that, too, by hand and found Turbotax to be correct in that there is no penalty.

Turbotax and I disagree, however, in whether I must file Form 2210.  Worse Turbortax wants Form 2210 filled out along with quarterly entries of income by dividend, short-term capital gains, long-term capital gains.  I have maybe 100 entries from a churning stockbroker that would make this a difficult task.

According to Form 2210, I do not have to file Form 2210 because the value for its line 9 is less than line 6 AND because I filed joint returns for 2021 and 2022.  Turbotax somehow thinks that despite no penalty, I need to fill out Form 2210. Also, it wishes I use the annualized method of entering income earned during year.

Earlier I had asked Turbotax to use the “Annualized Income Method”.  It appears Turbotax has been unable to update my form with my decision NOT to use this complicated method.  

Background information that might be useful.  In the section on Underpayment of Taxes and its Underpayment Penalty section, I responded to Turbotax as follows:
2021 filing status:  married filing jointly
2021 tax liability for Form 2210 purposes was less than $7000 
I did not want to annualize my income 
I did not want to treat the tax withheld as paid when it was actually withheld.
I will pay balance due on 2/28/2023
Turbotax concludeds “You don’t ow an underpayment penalty.  However, Form 2210 Underpayment of Estimated Tax must be filed with your tax return.”

When I try to correct Form 2210 so that I can efile, Turbotax asks for information or check “Form 2210AI” with, for example, something like “NetLongTermCapGainOrLossAAmt must be entered”

The entries it wishes numbers for are the following:

E-Qual Dividends ____
E-Qual Dividends ____
A-ST Net G(L)
E-Qual Dividends 
Line 16
A-ST Net G(L)
A-ST Net G(L)
Line 18
B-LT Net G(L)
B-LT Net G(L)
B-LT Net G(L)
Line 18

Thanks you for your help.

Paul

[MonikaK1]

In the situation you describe, TurboTax is asking you to include the completed Form 2210 in order to establish for the IRS that you aren't subject to the penalty. Using the annualized installment method requires that you submit the form with your return.

Please see this article for more information from TurboTax on this topic.

[nontronite]

You are right that Turbotax wants me to file Form 2210 to prove to IRS that I don’t have to pay a penalty. Turbotax, though, errs in wanting me to fill out all of Form 2210 even though I do not have to. It also errs in requiring I fill out all of the form using the annualized installment method that requires income per quarter. This would be a nightmare especially since Form 2210 does not require this for my circumstances. Even if Turbotax wants me to fill out all of Form 2210, why couldn’t I fill it out without the quarterly entries? Turbotax asked me if I wish to fill the form out that way, and I responded NO.

I wonder if I could fix this problem by deleting Form 2210 and then asking Turbotax to re-enter it? I could respond to Turbotax questions and Turbotax could redo the calculations for the form and, hopefully, correctly determine that I did not need to fill out the other parts to Form 2210. IF not that, maybe it could at least tell me I do not have to fill out the quarterly method of reporting.

Recall that in an earlier filing of Form 2210, I asked Turbotax to use the annualized installment method; maybe Turbotax is stuck with my first request to do that method. Would deleting Form 2210 from Turbotax and reentering Form 2210 update Form 2210 to exclude the annualized installment method?  

[AliciaP1]

Yes, and TurboTax will "remember" your previous method choices if you loaded your prior year's return.

To delete a specific form in TurboTax Online you can follow these steps:

1. Within your return, click on Tax Tools in the black menu on the left side of the screen.
2. Click on Tools.
3. Click on Delete a Form. 
4. Scroll down to your form and click Delete.
5. Under Federal in the black menu bar click Wages & Income to get back into your tax returns.
6. Proceed entering/reviewing your return.

To do this in TurboTax Desktop you can follow these steps:

1. Within your return, click on the Forms icon in the upper right of the screen to switch to Forms mode.
2. Scroll down in the menu bar on the left and select your form.
3. Click the Delete Form button at the bottom left of the preview screen.
4. Confirm the deletion then click the Step-by-Step icon in the upper right of the screen.
5. Proceed entering/reviewing your return.

Once you are in the review process for your return, TurboTax will prompt you regarding your method selections for determining any penalty.

@nontronite

[nontronite]

Thanks, Alicia.  It worked!  It now states I have no penalty---same as before---but now no longer requires I enter 18 entries in its vague requests for Form 2210.  

I was reluctant to delete it but that was the trick.