Form 2210A1 capital gains tax calculation error

[greg_s]

The Form 2210A1 capital gains tax calculation does not correctly compute the tax.  The problem is that it doesn't annualize the amount in the line "B Schedule, D line 15".  

[BillM223]

 Hi, I would like to understand your concern better. First, can you tell me what "B Schedule, D line 15" refers to?

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[greg_s]

Form 2210AI has a "Capital Gains Tax Computation Smart Worksheet" between lines 13 and 14. This worksheet has 7 lines labeled A through G. Line B is labeled "Schedule D, line 15", and contains long term capital gains.

Here is the token: 935988

@BillM223

[salilm1]

Greg you are spot on. Another TurboTax error. The worksheet to calculate the  tax on line 13  of the schedule AI is calculating the tax incorrectly. 

Turbotax does not show you the worksheet in any of its book of documents it send you, so I used what Greg just stated and yes basically in the worksheet Turbo tax needs to annualize everything including the qualified dividends and the net capital gain ( ie line 15).

[salilm1]

Any update on when this will be fixed?

[BillM223]

I see on your return that you made entries for long-term capital gains for the period 1/1/2021 to 3/31/2021, the period 1/1/2021 to 5/31/2021, and the period 1/1/2021 to 8/31/2021. I assume you saw the note that these three periods are cumulative, so that the entry for period B = the sum of the entry for period A and any additional gains in period B, and so on. 

Then TurboTax plugged in the amount from Schedule D, line 15 into the last quarter. These entries would make TurboTax think that the vast majority of your gains were recognized in the fourth quarter. Was this not the case?

If not, please return to the screen entitled "Net Capital Gains" in the Other Tax Situations->Additional Tax Payments->Underpayment penalties, and enter the Long-term capital gain/loss in each period in a cumulative fashion.

Or do you think TurboTax should annualize these gains in a different way?

@greg_s

[greg_s]

The reason I use the Annualized Method is that most of my income is in December.

Lines B and E of the Capital Gains Tax Computation Smart Worksheet on form 2210AI (forms view) are both qualified income and are added together for purposes of computing the tax. (I have nothing in the other lines). The bug is that the annualization factor is applied to the line E amount but not to line B.

Example: For column (a) the annualization factor is 4.0. The computed tax, shown on line 14, will be the same if I put 0 on line B and 10000 on line E or if I put 40000 on line B and 0 on line E.

@BillM223

[greg_s]

Still broken 3/31/22.

The workaround I will use is to combine the two amounts and put the total in line E and zero in line B.  (I only have entries in B and E.)