IT-2210A Underpayment of Estimated Taxes, Withholdings Won't Go In As Paid Causing a Penalty

[schellem]

We had uneven income last year after spouse retiring in May and an end of year ROTH conversion. We should have payed sufficient estimated taxes for the year with a big 4th qtr payment to cover the ROTH conversion for both state and fed. I am using desktop version of TT. I go thru the underpayment penalty section of Federal and TurboTax asks if the withholdings should be distributed across quarters or as paid. I choose as paid and enter the first 2 quarter witholdings and complete the interview process and the penalty is removed.

When I do the Indiana penalty section of TT I am not asked if my withholdings should be applied as paid or divided across quarters. I assumed that that just carried over from the Federal side but discovered it does not. My total year Indiana withholdings are just divided by 4 and applied across all four lines 20 & 21 of the IT-2210A thus still causing an underpayment penalty. I went back thru both Federal and State interviews processes in TT and don't see were I might be able to have the state withholdings applied as paid in only the first 2 quarters not across all 4. I next go to forms mode and am unable to directly edit lines 20 and 21.

This appears to be a bug to me. Trying to use Help from TT just brings up a never ending dialog that says 'Connecting you to Digital Assistant'.

Can anyone offer a suggestion on how I may correct and/or contact TT support?

Thank You

[DavidD66]

The Indiana Form IT-2210 instructs you to divide your total by 4 and enter equal amounts for each installment period.  The form instructions do say " See Income Tax Information
Bulletin #3 for special instructions related to withholding that does not occur evenly throughout the year...".  That Bulletin says:

If withholding as an employee or race team member does not occur evenly over the course of the year, enter the actual withholding during the payment during which payments are required. Withholding payments will be treated as occurring on the date of actual withholding (i.e., the date on which you are paid) for purposes of determining any penalty due. You may be asked to provide substantiation of the withholding such as pay statements. 

TurboTax does not support entering the actual amounts.  Therefore, your only option is to override the field on the form and enter the actual amount.  This means you have to print and mail your Indiana tax return as you won't be able to e-file with an override.  

Indidana Income Tax Information Bulletin #3

Indiana Schedule IT-2210 with Instructions

Actually, Indiana income can be entered entered in TurboTax according to what period it was earned.  See answer in thread for instructions. ‌ [Edited 3/10/2025, 2:00 pm PDT]

[schellem]

How do I override a form entry? I opened the 2210A in forms mode but am not allowed to change any value.

How do you report such bugs to TurboTax?

Thanks for the prompt reply

[DavidD66]

There is no need to report a bug.  You may not be able to override IT-2210 in TurboTax, but you can enter your income according to when it was earned.  As you go through the Indiana state interview in TurboTax Desktop, one of the questions you are asked is "Did you receive income unevenly throughout the year, ...?".  You should answer yes to this question, and the next screen will allow you to enter your income according to the period it was earned.  See screenshots below.

[schellem]

EDIT: See next reply, this is invalid response and I cannot delete only edit.

Before I created this post, I had went back thru Indiana thinking I missed what you are referring to but did not see it. I assumed it should have already had that answer from the Federal side of the interview.

How did you get to the Seasonal question?

[schellem]

So I've slept since I did this a couple weeks back so ignore my last response. I went back and tried again and remember things again. I go through the seasonal income for Indiana just fine. 

The problem, as stated in my original question, is that the state withholding for the year are divided by 4 and split across all 4 quarters when they were actually only paid in the first 2 quarters. The federal asks is you want to apply withholdings evenly across all quarters and the state does not. In our case all withholding were done in first 2 quarters and if they are applied correctly to the first 2 quarters then there is no penalty when I do a 2210A by hand.

So, if TT would let the withholdings be applied as paid, like it does for Federal, then this would not be an issue.