I am being asked to check an entry for "Form 2210 Underpayment of Estimated Tax by 2022 Individuals, Estates, and Trusts" however I don't believe this form applies to me?

[Anonymous]

How can I delete this form? I don't understand why TurboTax is adding it automatically. I got a refund from the IRS last year so I don't know what they mean by "underpayment." Absurd!

[VolvoGirl]

It doesn't have to do with not paying estimates or you last year return.    The penalty is an estimated amount.    It's a penalty if you owe too much or for not paying in enough withholding during the year or not paying in evenly.  

You might be able to eliminate it or at least reduce it.  You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you.  It's form 2210.

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

[MonikaK1]

It is possible to have an underpayment of estimated tax for 2022 even if you got a refund for 2021. 

The United States income tax system is a pay-as-you-go tax system, which means that you must pay income tax as you earn or receive your income during the year. You can do this either through withholding or by making estimated tax payments. 

If you didn't pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return (not the tax paid with the return) for the prior year, whichever is smaller. 

There are special rules for farmers and fishermen, certain household employers, and certain higher-income taxpayers. For more information, refer to Form 1040-ES, Estimated Tax for Individuals.

Completing the Form 2210 interview in TurboTax, as mentioned by VolvoGirl above, will give you the opportunity to enter information to avoid the penalty if applicable. See this article for more information.

Here's the procedure for deleting unwanted forms, schedules, and worksheets in TurboTax Online:

1. Open or continue your return in TurboTax.
2. In the left menu, select "Tax Tools" and then "Tools".
3. In the pop-up window Tool Center, select "Delete a form".
4. Select "Delete" next to the form you wish to delete. 

@Anonymous