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Level 5
February 17, 2022
Question

Error in Form 2210 Turbotax 2021

  • February 17, 2022
  • 9 replies
  • 1 view

Turbo tax 2021 (CD version) has an error in Form 2210 that was just released today (2/17/22).  Form 2210, line 10, box (a) is supposed to transfer the number from Form 2210 AI line 27, box (a), but instead transfers the number from 2210 AI line 27, box (b) .  The effect of this error is to put the tax due for all the income through May 31 into the place that should just include the tax due on the income through March 31 which, when compared against withholding and estimated taxes paid through April 15, shows that an apparent underpayment has occurred.  This would not be the case if the correct information from form 2210 AI line 27, box (a) was transferred to Form 2210 line 10, box (a), rather it would show that an over payment was made .  Running the Federal Tax smart check does not catch the error and it is not possible to correct Form 2210 line 10 manually via forms option.  How do I get Turbotax 2021 Form 2210 corrected so I can file my taxes without paying unnecessary underpayment penalty?  What good is Turbotax's accuracy guarantee if it doesn't cover Turbotax errors like this?

    9 replies

    Tax4fpAuthor
    Level 5
    February 18, 2022

    Minor correction to my previous message. 

     

    Turbotax 2021 is incorrectly filling Form 2210 line 10, box (a) from Form 2210AI line 21, box (b) rather than Form 2210AI line 27, box (a).

    Tax4fpAuthor
    Level 5
    February 24, 2022

    Latest TT update on 2/24/22 has fixed the error with Form 2210 line 10 box (a).  Line 10 now matches Form 2210AI line 27.  This has eliminated the bogus underpayment that TT previously calculated.  However, the step by step page for entering annualized withholding still shows incorrect date (7/15/2021) in second and third periods:  should be 6/15/2021.

    Level 4
    February 24, 2022

    Agreed... but TT did not fix the error on Form 2210 line 11(a) as it does not pick up from the Tax Payments worksheet line 6, Overpayments applied to 2021, in the federal tax column. Therefore the total taxes paid on the Tax Payments worksheet line 21, does not equal the total of line 11 from 2210.

    Level 2
    February 18, 2022

    What do you know! I've got EXACTLY the same problem with the online version. I've spent a lot of time on the phone, with no results to show for it.

    There's no point filing my return if it incorrectly shows I owe a penalty, so I'm kind of in limbo.

    I guess there are always the IRS free fillable forms if you get desperate.

    Level 15
    February 19, 2022

    This is an issue Turbo Tax is currently working on. 

    **Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"
    Level 2
    February 19, 2022

    Am I stupid or what? This help system is the most frustrating thing I've come across in a while.

    When I click on the hyperlink that says go here ..., I am taken to a page last updated 18 March 2021 "Why is my Form 2210 not calculating lines 18-26 correctly?"

    (1) That's not my issue, (2) The post is 11 months old.

    However, there is another go here link. When I click on that, I'm taken to a sign-up page asking for my name, email, and phone number. When I click the "Submit" button, I get an error message like this:

    This XML file does not appear to have any style information associated with it. The document tree is shown below.
    <qdbapi>
    <action>API_AddRecord</action>
    <errcode>22</errcode>
    <errtext>Sign-in required</errtext>
    <errdetail>
    The page you have requested can be viewed only by users who have signed in. Please sign in to proceed.
    </errdetail>
    </qdbapi>

     

    By the way, I am signed in.

    Does your system have ANYTHING that works the first time?

    Level 4
    February 22, 2022

    I posted a similar message on the TT mint board. The errors go even deeper. If you have a federal tax refund from 2020 that you applied to your 2021 taxes on the Tax Payments Worksheet, that amount is not picked up by TT's form as 'taxes paid'. Forms 2210 and 2210AI and Tax Payments Worksheet are not in sync. As you stated, lines 10(a) and 11(a) on the 2201 are in error... in addition to the error referencing line 27 from 2210AI.

    Level 2
    February 26, 2022

    I have been using Turbo Tax for more than 30 years and this is the first time I ever had to file Form 2210 and at no point in the year was I underwitheld when both normal witholding and estimated payments were made and combined. This same error apparently occured in the down-loaded version (without CD). Very frustrated as Its imposssible to adress this issue "live" with a technical suppost person. I guess I should expect a problem like this once every 30 years when you only pay $100 to have a semi-complex return completed by a third party.

    Level 2
    March 3, 2022

    Since we're all here to help, I see two options. Option 1 would be to go to 'VIEW' at the top of the Turbo Tax page.  Find the Form you need, right click on the line to be corrected and override will appear and make the correction that way. Option 2 would be to call the Turbo Tax Help line and ask if a Representative could manually take over your computer and see if they can assist in fixing the problem. Good Luck!

    Tax4fpAuthor
    Level 5
    March 3, 2022

    TT update on 3/3/22 did not fix any of the errors in Form 2210.  Still not calculating line 14 (a)-(c) on Form 2210AI correctly and still using the wrong dates in step by step for annualizing withholding.  2021 TT Form 22210 is a piece of junk that TT isn't making any effort to fix and TT 100% accuracy guarantee isn't worth anything so they don't even try.

    Tax4fpAuthor
    Level 5
    March 5, 2022

    There are several problems with Form 2210 that remain as of March 5:

    1. Failure to include 2020 refunds applied to 2021 taxes. 2020 refunds applied to 2021 taxes are not credited as tax payments in any column of Form 2210, Part III Line 11. (Part 2 Box C is checked, Box D is not). Instructions for Line 11 state they should be included: "Include the following payments: Any overpayment from your 2020 return applied to your 2021 estimated tax payments." For those that filed by April 15, the credit should be included in the first quarter for Line 11, but TT fails to include it in any quarter.
    2. Failure to include above-the-line charitable contributions. As many have pointed out, Schedule AI, line 7 fails to include any amount on Form 1040, line 12(b) (above the line charitable contributions: up to $300 single / $600 MFJ). Taxes calculated on lines 14(a), 14(b), and 14(c) are therefore slightly higher than they should be. (The deduction is properly included in the final tax calculation in 14(d), even though the taxable income shown on line 13(d) is incorrect.)
    3. 3. Tax computation in Schedule AI, line 14 (a), (b), (c). TT assumes that capital gains are one-time events for each quarter, while qualified dividends will continue throughout the year. Consequently, qualified dividends are annualized by multiplying by 4, 2.4, and 1.5 for the first through third quarters in the tax calculation, but capital gains are not multiplied by any factor. For example, if you are married filing joint and have $50,000 in income that includes $1000 in capital gain in the first quarter, TT calculates the taxes on (4*$50,000)-$1000 = $199,000 at regular tax rates and $1000 at 15% tax rates. However, if you have $50,000 in income that includes $1000 in qualified dividends it calculates the taxes on (4*50,000)-4*$1000 = $196,000 at regular tax rates and 4*$1000 = $4000 at 15% tax rates. The underlying assumptions that qualified dividends are recurring (and hence should be annualized) but capital gains are one-time-events (and hence should not be annualized) are reasonable for many, but not all.

    @kevinandlori 

    I disagree with your statements about line 14 that indicate that TT assuming CG are one time events and not scaling them for that period is even reasonable.  Even one time events are multiplied by the scaling factor to determine the annualized total income for a given period per IRS rules.  If TT doesn't also scale the CG amount and subtract that from the total income, TT will be calculating the difference at the regular tax rate, rather than at the CG rate.  In my case, the CG for period one was $10,000 (replaces your $1000 in your example).  As a result the 4 x $50,000 =$200,000 in my case includes 4 x $10,000=$40,0000 from this one time event.  When TT only multiplies $10K by 1 rather than by 4 before doing the tax calculation, it means that the calculated tax on the difference ($30K) is calculated based on 24% rate (I'm single) rather than 15% CG rate, resulting in a $2700 higher calculated tax in 14 (a) and a $600 estimated underpayment for that period. Since the issue also exists for the second and third periods, the incorrect calculations in 14 (b) and 14 (c) generate additional incorrect underpayment estimates which resulted in TT saying I owed an underpayment penalty of $132, when a proper calculation using the correct scaling factors showed no underpayment penalty is due.  If I wasn't smart enough to do the calculation separately using the actual IRS rules in Pub 505, I would have ended up paying an incorrect penalty that was 3 x what I paid for TT.  Since TT 100% accuracy guarantee doesn't cover the case where TT calculations result in overpaying the IRS, only in the case where the IRS says I underpaid, I would be screwed out of $132 because TT can't apply the proper scaling factor that IRS Pub 505, Worksheet 2-8 says it should. 

    Level 2
    March 14, 2022

    Im having the same problem and the link to get an email when the form is fixed was no longer working. 

     

    Level 4
    March 14, 2022

    Agreed... there was a new update today and it did not fix the form 2210 error where total estimated payments from the Tax Payments Worksheet is properly carried over to the 2210.

    Level 2
    March 28, 2022

    Similar problem ....

    Does not apply last year's excess tax applied to this year at all in figuring penalty. IRS says to count it as a 4/15 payment, which would put it in column a.

    in addition, I made two estimated payments by check in the period between April 15 and June 15. It did not combine them and include them in the 6/15 payment column b.

    I have been able to override the entries, but TT considers it an error on my part. Quite the contrary.

     

    Both errors on TTax mess up the penalty section of this form.

    Level 4
    March 28, 2022

    Two months since I first reported and spoke to TT representatives about issues with form 2210. They seem unable to fix these issues this year. 

    Level 2
    April 5, 2022

    When I clicked the QuickZoom to the Underpayment Penalty Worksheet at the bottom of Form 2210 in Forms Mode I saw that the amount of 2020 refund applied to 2021 tax liability was applied partially for each of the first, second and third installments, listed as a payment with date 4/15/21.  In each installment table the portion of the applied refund amount that is shown is just what's needed to meet the liability for that installment.  The heading for each installment table shows an underpayment amount the same as on the 2210 Part III line 17 even though there is no underpayment due to the applied refund.  The result for my return shows no penalty.  This worksheet is only a "Keep for your records" form, it's not included with the filed return.

     

    I went ahead and filed with the incorrect numbers on Form 2210, hoping that the IRS does the penalty calculation correctly to assess no penalty.

    Level 2
    April 14, 2022

    What is TurboTax going to do to fix my form and get me the rest of my money??????

    Level 2
    April 18, 2022

    I made an  error in my 2020 MO state tax ,form, indicating a $2000 estimated tax payment from a $1000 2019 MO state tax excess payment rollover to 2020 MO state tax.  This appeared as a $900 overpayment for 2020, which I applied to my 2021 estimated tax.  This turned out to be an underpayment of my 2020 submittal, but now indicated a $900 estimated tax payment for 2021, which is in error (does not exist)

    Now I don't know how to correct the 2021 MO state tax form, to remove the $900 within the TurboTax Delux program.