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Form 2210A1 capital gains tax calculation error

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".  

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7 Replies
BillM223
Expert Alumni

Form 2210A1 capital gains tax calculation error

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

 

In addition, could you send us a token, which refers to a sanitized copy of your return (the token is a 6 digit number that points to it in the database)?

 

To send us a token, please do the following: 

 

TurboTax Online:  

 

Click Tax Tools in the menu to the left.

Click Tools, and then

Click Share my file with Agent.

 

A pop-up message will appear. Click OK to send the sanitized(i.e., no personal data) diagnostic copy to us.

Provide the token number that is generated onto this thread.

 

TurboTax Desktop:

 

Select Online menu if the customer is using Windows. Select “Help” if using a Mac.

Select Send Tax File to Agent.

A pop-up message will appear, and the customer will select, Send. If using Mac "Send Tax File to TurboTax Agent

 

Note: Desktop will save a file to your computer unless you uncheck the box.

Another message will appear. Provide the token number that is generated onto this thread.

 

 

At the end of your response, please put "@" plus "BillM223" (without the space in between) so that I will be notified that you have responded.

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Form 2210A1 capital gains tax calculation error

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

Form 2210A1 capital gains tax calculation error

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).

 

Form 2210A1 capital gains tax calculation error

Any update on when this will be fixed?

BillM223
Expert Alumni

Form 2210A1 capital gains tax calculation error

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

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Form 2210A1 capital gains tax calculation error

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

Form 2210A1 capital gains tax calculation error

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.)

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