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e_hightow
New Member

I paid 2023 taxes so why did I have a 2023 tax liability for 2210 purposes transferred to my 2024 return?

 
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2 Replies
JohnB5677
Employee Tax Expert

I paid 2023 taxes so why did I have a 2023 tax liability for 2210 purposes transferred to my 2024 return?

Please clarify your question.

 

  • Because you owed taxes in 2023 a 2210 was prepared for additional payments in 2024.
  • Did you make any estimated payments in 2024?
  • What was transferred to you 2024 tax return?
  • Was it the 2210 payment schedule that you should have paid?
  • What area of the return are you working on?
  • Where do you see the entry?

Please contact us again to provide some additional details. 

 

 

 

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I paid 2023 taxes so why did I have a 2023 tax liability for 2210 purposes transferred to my 2024 return?

@ e_hightow   asked: "I paid 2023 taxes so why did I have a 2023 tax liability for 2210 purposes transferred to my 2024 return"

 

First of all, based on the little context I would say that's normal.  I'm a longtime fellow user (not a tax expert) and always have the same thing transferred in.  It's not implying that you have an unpaid balance at the IRS.   Folks who had a 2023 tax liability (even when they paid it in full) have that 2023 figure transferred into 2024 for 2210 purposes.  It's the 2023 figure before you actually made any payments.  (I "think" the TurboTax figure essentially uses 2023 taxes less some types of 2023 credits, but it might be more complex than that.)   TurboTax 2024 either asks for it, or as in your case, it transferred in.   It doesn't imply that you didn't pay 2023 taxes; it just wants to know what the 2023 liable amount was so it can compare it to your 2024 payments.  Here's why:

 

In the background as you prepare your return, TurboTax prepares a  Form 2210 to see if you are liable for a 2024 underpayment penalty.  As part of those calculations TurboTax uses a figure called "2023 tax liability for 2210 purposes".  And on the Form 2210 one of the things it utilizes is comparing your payments that you made throughout 2024 to that 2023 tax liability in order to see if you paid enough in during 2024 to meet the minimum requirements to avoid an underpayment penalty for any quarter, and if you didn't, then to figure the penalty.

 

I don't know how you're preparing your return, but if you're using desktop TurboTax, go into Forms Mode, and way down in the left-column list of forms you can view the Carryover Worksheet, abbreviated as Carryover wks.   On page 2, Line 6 of that Carryover wks it should show you 2 columns-- in the first column Line 6 shows what it transferred in this year for your "2023 tax liability for Form 2210 purposes", and the second column shows what it will use next year for your 2024 tax liability for 2210 purposes when you prepare your 2025 return.  NOTE:  that 2nd column (2024) will continue to change as you continue to work on your return.

 

If you still have additional questions about this topic, continue in this thread, and hopefully someone can assist you further.

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