Partial 401K rollover to Roth IRA

[a0324]

I asked this question about 4 weeks ago but I am still a bit unsure. I did a partial rollover to a Roth IRA the last week of 2021. I paid the estimated tax for this rollover amount to the IRS online the first week of 2022. I am working on my 2021 taxes using the desktop version of Turbotax. It is saying that I have an underpayment penalty. I don't normally make quarterly estimated payments but I guess the end of year rollover is causing this penalty flag. I paid enough tax on the rollover and I am getting a refund.

Can I delete the penalty showing on form 1040 and have the IRS figure the penalty and send me a bill? I can then respond and explain the end of year rollover. Or, should I choose the Underpayment penalties option and complete form 2210 using the Annualized Income Method to report my income by quarter and try to eliminate the penalty? 

By the way, form 2210 has some flaws in the software. On schedule 1A of the form, line 7 asks for the sum of the standard deduction and line 12b (charitable contributions) from the 1040. The software is not adding in line 12b  

and I cannot add it manually.

[MarilynG1]

Yes, you can elect to have the IRS figure your penalty.

• Select Other Tax Situations
• Scroll down to Additional Tax Payments
• Click start/edit next to Underpayment Penalties and select that option when presented.

This will override any penalty TurboTax calculated. Check to see if you qualify for Exceptions to the penalty in this section, since your rollover is a one-time event. 

Make sure you entered your Partial 401K rollover to Roth IRA correctly in TurboTax and that you reported the Estimated Tax you paid in early 2022. 

Yes, some users have reported errors in Form 2210, but the overall tax forms were correct.

If you're using TurboTax Online, try closing the program, clear your Cache and Cookies and re-visit the section.