Incorrect Form 2210 and Schedule AI

[64dancer]

Turbo Tax incorrectly enters the first three periods of Schedule, causing a penalty when one isn't due. Are they going to fix this?

[BillM223]

In Schedule AI on Form 2210, you enter your adjusted gross income (line 1) and itemized deductions (line 4) for each period.

Are you saying that TurboTax mis-entered one of your inputs, or that it made a calculation error on the form?

If so, on which lines?

[64dancer]

Schedule AI is correct through line 13. Turbo Tax calculates the tax wrong on line 14 for column (a), (b), and (c). Column (d) is correct. Form 2210 is correct through line 9, but when Schedule AI numbers come over to Part III,  I end up paying a penalty on line 19 due to the incorrect tax calculation.

I have read in forums that this is a common known problem. It would cost me more in postage to manually do my taxes with the correct tax calculation and mail them than my $8 penalty, but I would prefer my taxes to be correct.

[BillM223]

As you are probably aware, we in the Community cannot see your private tax data nor the screen you are on, so it would really help a lot if you would tell us exactly what you think is wrong.

Yes, there were discussions two months ago about wishing to override line 14, but that was addressed, so I have no ideas what you mean that TurboTax is calculating the tax wrong on line 14.

Please let us know some more detail.

[64dancer]

Schedule AI, Line 11, Column (a) is 99,440. I agree with this number. This number goes to the Annualized Qual Div & Cap Gn Worksheet (Tax Worksheet 2-8):

1. Taxable Income               99,440

2. Annualized Qual Div      29,750 (I verified that I have entered this correctly)

3. Annualized Net Cap Gn 43,803 (Ditto)

4. Add Lines 2 & 3                73,553

5 thru 8.                                           0

9. Line 4 less Line 8             73,553

10. Line 1 less Line 9            25,887

11. Smaller of 1 or 96,700   96,700

12. Smaller of 10 or 11         25,887

13a.  Line 1 less Line 4          25,887

13b. Line 1 is smaller            99,440

13c. Line 10 is smaller           25,887

14. Line 13a = 13c                  25,887

15. Line 11 less Line 12         70,813

16. Line 9 is smaller               73,553

17. Line 15                              70,813

18. Line 16 less Line 17          2,740

19. MFJ                                 600,050

20. Line 1 is smaller              99,440

21. Add Line 14 & 15           96,700

22. Line 20 - 21                        2,740

23. Line 18 = Line 22              2,740

24. 15% of Line 23                      411

25. Line 17 + 23                     73,553

26 thru 36                                   Skip

37. Tax on Line 14                    2,628

38. Line 24 + 27                       3,039  This IS my Tax for 1/1/25 - 3/31/25, Line 14, Schedule AI (Form 2210)

Turbo Tax says my Tax is 7,095  for Line 14 Sch AI. Similar problem exists for 1/1 - 5/31 & 1/1 - 8/31. 

1/1 - 12/31 is correct.   This less my credit x 22.5% goes on Form 2210, Line 10, column (a).  I do not owe a penalty using my number, but using the Turbo Tax number, I do.   

[BillM223]

Unfortunately, TurboTax does not provide the calculation worksheets for how the tax on line 14 in 2210AI is calculated. 

A user who earlier this year questioned these calculations discovered that they were correct:

"Problem solved! TurboTax calculates the amounts on line 14 of Form 2210AI using the "Qualified Divi...

I finally solved it by copying the logic from the QD & CG Worksheet into 4 Excel Worksheets and ente...

However, as you can see, it will take a lot of work to demonstrate this. By any chance, have you created these spreadsheets?

[64dancer]

I have created my own spreadsheets using Form 2210, Schedule AI and Worksheet 2-8 to calculate the tax. Unfortunately, Turbo Tax does not show the tax calculation, so I have nothing to work from other than Worksheet 2-8.

[RobertB4444]

Did you try using the calculations that @BillM223 references above?  Those are pretty complicated but they do seem to be a good way to find the amount TurboTax is calculating.

@64dancer 

[64dancer]

I have used Form 2210 and Schedule AI. My guess is the difference is I used Worksheet 2-8 in Publication 505 on page 39 to calculate my tax. And yes, I used it four times, once for each of the four periods. I am wondering if he used  Form 1040's QDCG Worksheet (which does not talk about annualization) to match what TT has???

[AmyC]

Possible options: 

• Enter your Total Cumulative Capital Gains + Qualified Dividends into the "Qualified Dividends" box and enter $0 in the "Capital Gain" box, 
  • Low risk, as the IRS only sees the final tax number on Line 14, not the sub-breakdown of that specific calculation.
• Switch to desktop and override the values. You can pickup where you left off.