Form 2210

[k672m]

Turbtax will not let me file until Form 2210 is released. Why am I seeing that I need to file Form 2210 when I have made all of the estimated tax payments properly and my taxes paid for 2021 were at least 90% of the taxes due on the return? I'm due a refund and have paid more than the required taxes through withholding and equal quarterly estimated tax payments on time.

[MayaD]

To reduce or possibly even eliminate your underpayment penalty,  search for annualizing your tax (use this exact phrase) inside TurboTax. This will take you to the underpayment penalty section and we'll take you through the steps to possibly reduce your underpayment penalty.

For more information please check:

Why am I getting an underpayment penalty if I'm getting a refund?

[k672m]

I went through the annualizing your tax and Turbotax states I do not owe an underpayment penalty, but I need to file Form 2210 with my return.  It states my 2020 tax liability was zero, which is not true. How do I amend that? Why do I need still need to file Form 2210?

[ThomasM125]

You need to revisit the Underpayment penalties section in TurboTax, which is in the Other Tax Situations section. When you work through that section, you will be asked to enter your tax liability for the previous year. That is how you can change your previous year tax liability.

If you owed a penalty before you went through the underpayment penalty routine, then you would need the form 2210 to reduce or remove the penalty. Otherwise, you can delete the form 2210 as follows:

A simple way to delete forms in TurboTax online is to use the Tax Tools menu option, which is on your left menu bar when you are working in your program. Then, choose Tools and then Delete a form. Find form 2210 in the list and delete it.

If you are working in the download TurboTax program, use the Forms Mode on your menu bar to bring up the form you want to delete, then choose the Delete Form option at the bottom of the form.

[k672m]

@ThomasM125 

I went to Other Tax Situations, I am not given an option to enter my tax liability for the previous year.  I get to a screen that states: 

Form 2210

Understatement of Estimated Taxes  - Available to file 2/17/2022

Is this what you are referring to?

[DawnC]

Try this.  Search for penalty in the search box and use the Jump to penalty link to be taken to the underpayment penalty questions.   The 2210 form is needed to calculate the penalty and if TurboTax thinks you have a penalty, your return won't be to be e-filed until it has been finalized.   You can change your answers to the questions, update your 2020 liability and if you don't owe the penalty, you don't need the form and will be able to e-file.   

At the end of the penalty questions, there is an option to 'Let the IRS bill me later'.   Marking that box will eliminate the need for TurboTax to calculate the penalty.   And if you are sure you do not owe penalty, you won't receive a bill.