2210 calculations?

[Wupot]

Hi,  I am using the downloaded version of Turbo tax.   I completed my 2022 taxes and submitted.   I noticed that I owe a penalty which is shown on form 2210.   Where does Turbotax get the information showing on this form?   This form indicates not only what I owed in taxes each quarter in 2022 but also what I actually paid each quarter.   How would Turbotax know what I actually paid each quarter?    Does Turbotax get what my quarterly payments were directly from the IRS?    This form shows that I paid $x in taxes in Q1.   I didn't pay estimated taxes at all so I assume this number is taken from my actual payroll deductions for taxes?   if so, the amount showing on the form is about 50% of what was actually deducted from my paychecks during Q1.  This is resulting in a penalty..

[DoninGA]

TurboTax does not have any way to know if or when estimated taxes were paid.  There may be a carryover from the 2021 return that caused an amount to be entered for Q1.  Go to the Estimates section and delete any entry that is incorrect and if you did pay any estimated taxes in 2022 enter those payments.

To enter, edit or delete estimated taxes paid (Federal, State, Local) -

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credits
Click on I'll choose what I work on (if shown)
Scroll down to Estimates and Other Taxes Paid
On Estimates, click on the start or update button

Or enter estimates paid in the Search box located in the upper right of the online program screen. Click on Jump to estimates paid

Federal estimated taxes paid are entered on Form 1040 Line 26

[fanfare]

"I completed my 2022 taxes and submitted.  "

you can amend your return if Form 2210 is filled out incorrectly.

e-File of 1040-X makes it much easier.

@Wupot 

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[ErnieS0]

Form 2210 will divide your income and payments into four periods unless you choose to annualize your income and payments.

Withholding is divided as if paid evenly throughout the year, unless you choose to annualize the amount.

Here’s how to annualize your income:

1. Type penalty in Search (magnifying glass) in the top right corner
2. Select Jump to penalty
3. Answer the questions until you see “Annualize Income Method.” Say YES and follow the directions to divide your income and payments.

[fanfare]

"if so, the amount showing on the form is about 50% of what was actually deducted from my paychecks during Q1."

It should be 25%, not 50%, and 25% for each of the other periods.

not clear why you single out Q1  ??

@Wupot 

[VolvoGirl]

@fanfare   Just to clarify....not 25% of Q1 but 25% of the annual amount from W2 box 2.  

@Wupot  Do all 4 quarters show the same amount for withholding?  And check the dates on 2210 for the quarters.  They might not be calendar quarters.  They might have different starting and ending dates.  And each period might start from Jan 1.

[Wupot]

Thanks for the feedback.

The form shows "Required Installment" as the same for each quarter.   As far as Payments, here are some general numbers....

Q1:  Required Installment:  $13464.   Underpayment, $245.   Payments:  4/15/22:  $13,219.   6/15/22: $245.   I owed interest on the $245that was paid on 6/15/22.

Q2:  Required installment:  $13464.  Underpayment, $490.   Payment 6/15/22: $12974.   9/15/22:  $490.   9/15/22:  $490.   (Two separate payments on 9/15/22)   I owe a penalty on each of the two payments of $490.

Q3 and Q4 are similar...

I guess TT took what I owed and paid and just divided by 4.   My income was lumpy so maybe it should have been adjusted...  I didn't make any prepayments so not sure where the payment dates are coming from...

[ThomasM125]

The quarterly payments would be your total tax withheld for the year, as reported on your W-2 form, divided up by the numer of days in the year and then multiplied by the number of days in each quarter. So, it is an average of sorts. You can enter the actual amount you had withheld for each quarter if you use the Underpayment Penalties menu option in the Other Tax Situations section of TurboTax, under the Additional Tax Payments menu option.