2021 Form 2210 Calculation Error

Confirming, I get same error in TurboTax (Premier 2021 PC version) Form 2210, Part III, line 10, column A: required quarterly installment payment is twice what it should be.  Probably left over from Tax Year 2020 when the first 2 quarters were rolled together by IRS.  Hope this gets fixed in next TurboTax update.

As of Feb 21 I suggest you DO NOT USE TURBOTAX for FORM 2210. I have so far found 5 errors in the TurboTax calculation:

1. When using the annualized installment method, line 10 column (a) in part 3 of form 2210 is supposed to be equal to schedule AI line 27 column (a). Instead, it is equal to line 27 column (a) + line 27 column (b).

2. The tax computations on schedule AI, line 14 column (a), (b), and (c) are incorrect.

3. Self-employment tax on line 15 of schedule AI is incorrectly also included in line 16, resulting in a double-counting of self-employment tax and a line 17 column (d) total tax that incorrectly exceeds the total tax shown on form 1040 line 24.

4. 2020 refunds applied to 2021 are supposed to count as a tax payment starting in the first quarter of 2021. Instead, 2020 refunds applied to 2021 are incorrectly ignored on form 2021.

5. Line 7 schedule AI incorrectly excludes amounts on line 12(b) of form 1040.

I am also seeing the incorrect transcription of data from Sched AI line 27 to form 2210, line 10.  It is taking data from the 2nd period and putting into the 1st period's required installment, thus making it look like a gross underpayment.  Hope it gets resolved soon.

Hit same problem late last week. Looking forward to getting an update with the fix.

I am getting this same error where the amount in Form 2201 line 10a incorrectly is calculated as the sum of what should be in line 10a plus the amount in line 10b.  Also, Form 2210 Schedule AI line 7 fails to include in all columns the amount from Form 1040 line 12b. 

This is screwed up.  I filed my taxes with this error, and it calculated a $10 penalty.  Then an update came out 2 days later and it cleared the penalty.  When I compared the filed with the updated 2210 I saw the error in transfer.  TT should have immediately pulled the form before anyone had a chance to file.  Seems its fixed now but I already filed.  Maybe the IRS will find it and disregard the penalty.

Bits and pieces of my thought process:

I file a 1041 using Turbo Tax Business and it appears that capital gains are not annualized in that 2210 calculation either. At least TT is  consistently wrong. I had no penalty and filed with the wrong numbers on 2210AI. My rational is that if the scaled capital gains were entered my overpayment would have been higher and IRS is not going to chase me for no monetary gain on their part.

I said I was going to use some other software next year. While I was waiting for a TT fix, I shopped for some other software. I went to the large online merchant's site and read reviews. One package that I was interested in (I need 1040 and 1041) had reviews that said they nickeled and dimed you to death - you  want a printed return that cost more. Stopped looking at that package. Bought a package that would do my 1041 and 1040 in the same purchase. I installed, and entered my 1040 information. This package didn't even ask about capital gains and qualified dividends for the 2210AI, didn't have the expected taxable portion of the IRA withdrawal, and didn't handle 199A deduction coming from my K-1 (said I needed professional help). Lesson learned - I will not switch. TT in spite of its problems is the most complete and helpful package for me and others with complex taxes (IMHO).

I finally got impatient and filed my 1040 return. With the capital gains not annualized I didn't owe a penalty and felt safe filing with a slightly higher quarterly tax calculation on the 2210AI.

Work arounds: Had I owed a penalty, I would have used some of the work arounds suggested in this forum. I could have included capital gains in the qualified dividends number which is scaled. Or better yet scaled the capital gains before I entered them in the turbo tax interview boxes. Multiplied first quarter capital gains by 4 (or 6 for the 2210AI of the 1041), etc. 

Hopefully this time next year TT will have fixed these problems.

Has anyone determined if Turbotax is calculating the penalty when it should?  From all appearances, I do owe a penalty (underpaid for first two quarters) yet it shows zero for the penalty.  Specifically, Line 17 of Form 2210 shows amounts for col a) and col b), underpayment for 4/15 and 6/15, but Line 19 Penalty shows zero.  I did a Quick Zoom to see the worksheet for Line 19, and it does show the underpayment amounts on the worksheet but Days Late, Rate Period, Interest Rate and Penalty fields are blank, so it apparently didn't do the calculation.

Second question, if I eFile as is (zero penalty erroneously calculated), will the return be flagged immediately by the IRS, and give me an opportunity to correct?  If not, and it's caught further down the line, will I owe more interest and penalty?