Form 2210 Penalty

Forum|Forum|3 years ago
April 10, 2023
1 reply
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I don't think I owe any taxes. Where is this coming from? I need help from experts.

This is the first time I've seen it.

TurboTax Home & Biz Windows

Vanessa A

Level 15

It says you owe $1,847. Your tax liability is $2,336 and you only paid in $553. You are getting a penalty because you didn't pay the full amount you owed for the year. If you only had a tax liability of $553 for 2021, then you can claim a penalty waiver by continuing through and answering yes when TurboTax asks if you would like to see if you can get the penalty waived. It will then ask what your liability was for 2021 as well as your 2021 income. If you paid 100% of your 2021 liability, the penalty will be removed. You can also see if you qualify to annualize your income on the same form which means if you received most of your income in the last quarters of the year, you would be able to lower your penalty. Otherwise, you will likely be charged the full $64.

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TheWisdomAuthor

Level 5

Excuse me! But you might be missing something here; the $64 penalty is from the 2022 tax year, NOT 2021.

This could be a bug (error) in the TurboTax software.

TheWisdomAuthor

Level 5

The forms that you are showing are calculating an underpayment penalty for your 2022 Federal 1040 tax return.

Your 2022 Federal 1040 tax return computed tax of $2,336 and tax withheld of $553 leaving a balance due of $1,783.

IRS form 2210 Underpayment of Estimated Tax by Individuals, Estates and Trusts calculates the underpayment penalty if you did not withhold or pay enough taxes during the tax year.

In general, you may owe the penalty for 2022 if the total of your withholding and timely estimated tax payments did not equal at least the smaller of:

1. 90% of your 2022 tax, or

2. 100% of your 2021 tax.

Access the form by following these steps:

Down the left side of the screen, click Federal.
Down the left side of the screen, click Other Tax Situations.
Scroll down to Additional Tax Payments. Click Show more to the right.
Click Start to the right of Underpayment Penalties.

@TheWisdom

In the TurboTax software's penalty waiver form, what information should I provide (What do I need to write down) if I want to request a waiver of this penalty?