TT is calculating the wrong underpayment penalty by 1.95x. 2020 IRS Form 2210, Part III - Short Method, Line 15, uses 0.01744, but TT still uses 2019 value 0.03398. Why?

[_TnT_]

This is clearly a bug that needs to be fixed as soon as possible given the error is nearly 2x the correct amount. I first observed this error using TurboTax Online Deluxe on 02/22/2021, but it likely affects all TurboTax Online versions and maybe the Desktop products as well. Double-check. Suggested workaround if you have no other reason to file the form: just let the IRS calculate the penalty for you if you cannot wait for the fix before filing and keep the correct amount of underpayment penalty money put aside for when the IRS bill comes due.

[_TnT_]

For convenience, here is the link to the 2020 IRS Form 2210: https://www.irs.gov/pub/irs-pdf/f2210.pdf

Here is the link to the 2019 IRS Form 2210: https://www.irs.gov/pub/irs-prior/f2210--2019.pdf

Also, it seems like at least for Intuit's ProSeries, the 2020 IRS Form 2210 will not be final and ready for e-filing for another few days until 02/25/2021: https://proconnect.intuit.com/proseries/forms-finder/.

Thus, perhaps it's the same for TurboTax Online too.

[Mike9241]

you can suppress the 2210. if you are due a refund the IRS takes out the penalty and doesn't bill you unless the penalty is more than the refund 

[_TnT_]

Similar to Intuit's ProSeries, IRS Form 2210 is not yet final and ready for e-filing for any of the TurboTax Online products:

https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotax_fed_online_individual.html.

The availability date is currently 02/25/2021, but this has already been pushed back at least one week (prior date: 02/18/2021).

We shall see if the calculations gets fixed once IRS Form 2210 is marked as final for TurboTax Online.

FWIW, here's a link where you can get find the form availability of the other TurboTax personal tax products (this is where I got the one for TurboTax Online):

https://ttlc.intuit.com/community/forms/help/irs-forms-availability-table-for-turbotax-individual-pe...

[_TnT_]

Yes, if you do not have another reason to file IRS Form 2210, you can let the IRS calculate it for you. Indeed, if you're due a refund, the IRS will adjust the refund by the amount of the underpayment penalty. However, it's usually rare to both be due a refund and owe an underpayment penalty unless you deliberately overpay the tax due via an extension payment or return payment.

In my case, I need to file IRS Form 2210, so I need to wait for the form to be fixed and final in TurboTax Online.

[AkinaLO]

Form 2210 is showing that it is now available for mail and e-file. Please refresh your browser and clear your cache and cookies, then you should be able to file with form 2210.

Use this link for the IRS forms availability table.

Federal Individual Form Availability

[_TnT_ · Accepted solution]

Now that IRS Form 2210 for 2020 has been finalized (on 02/25/2021), I can confirm that TurboTax is finally calculating the underpayment correctly using the expected factor for 2020 in Part III Short Method, Line 15: 0.01744.