Turbo Tax 2020 not adding Form 2210 for underpayment penalty

[flemming]

My 2210 issue now fixed, but on 3/1 -was getting some crazy numbers appearing on form. 

Deleted form 2210, deleted all TT cookies and reloaded.   Now all is Copacetic!

[lakemurray]

I also have an overpayment of estimated taxes in the first period (through 7/15 due to COVID-19) which does not carry over to the second period which is line 20 of column (c) on Form 2210 part IV.  Instead, the overpayment is transferred to line 20 of column (b) which is a "dead" column.   Laziness by the IRS has left four columns on the form where only three are required this year.  The IRS decided to use only columns (a), (c) and (d).  Unfortunately, TurboTax does not understand this and has not revised Form 2210 accordingly.  The issue is clear to me but I've read several posts from people who have spent hours on-line with TT Support trying to explain this problem to them. 

[Spino]

@lakemurray Further back in this thread you'll find my discussion of workarounds. But be assured you're not imagining things. I actually went through a lot of reworking, including filling out the variably timed income subform 2210AI. That didn't really change anything though, as the form still wasn't right! Then it dawned on me what was wrong with the form :-).

[les_rjtt]

This begs the question... Where are the RELEASE NOTES with Big Fixes and Known Issues for all versions of TurboTax 2020 with each new update patch?  This would help all of us users and customers to figure out what is working... and what is still broken!    The link to release notes used to be nicely listed in the past of the good ol'TurboTax yesteryears. 

If these release notes exist for the 2020 Tax version, TurboTax Release Team is making sure it is hard to find them.   Only post on the Community is from 1 year ago with TurboTax saying it was a good idea and there were bringing them back... But this was last year. Where are they this year, less than 2 months before tax day?

[David SR]

Now that the forms are updated for underpayment penalty,  the online turbo tax has hung up on the review of  quarterly estimated tax payments are not equal to with holding.  I haven't made any quarterly payments, OPM withholds each month for my pension check. the penalty is a result of money I've taken from my thrift savings and IRA's.  It gives me a block to enter a figure,

Part II, Line D ' Tax Withheld Smart Worksheet

[Spino]

@David SR The problem you discuss is different from others in this thread. The short answer to your problem is that withholding and estimated taxes are two different things. DO NOT REPORT ANY MONEY WITHHELD AS ESTIMATED TAXES. (So you will need to go back and delete that amount you are saying you reported this way.)

Withholding is reported to you on W2's and 1099s you receive from people who paid you, but kept back money to cover income taxes you might owe. They give this money to the government and then the government credits you for that money on your return.
Estimated taxes, as well as any refund due you ask the IRS to apply to next year's taxes instead of giving it to you now, are money you send in yourself to the IRS, generally quarter by quarter, although you can send it in at any point and it will be credited according to when it is received.

The IRS thinks of these as two different things, even though they both are ways of paying the taxes you expect to be due when you file your annual 1040.

[Spino]

I'm not going to wait any longer to e-file. I am using the following workaround:

1) I am requesting the underpayment penalty be waived.

2) One of the reasons I'm giving is that the penalty is not due because the form did not correctly record the carryover of overpayment from quarter 1/2 to quarter 3.

Because a request for the penalty to be waived results in TT not including the penalty, my tax return should be correct, just as if it was correctly calculated, with the exception that it will include the underpayment form and the waiver request, and a notation that there is 0 underpayment penalty due on form 1040, with the notation "waiver request."

Since what is actually transmitted is not the forms themselves, but rather an approved electronic formatting of the data set, the IRS may not even have the same mistake in their system when their computers read my return. Hopefully this will all work out :-).

[flemming]

Good luck!   With my number set, asking for a waiver, removed a small computed tax penalty.  I ended up

paying the small penalty with no requested waiver.    Asking for a waiver caused efile to fail......text error message came back about 10 minutes after pressing Transmit.     Before attempting Transmit, return passed

all internal TT program checks.   Fought the 2210 battle for days (more accurately weeks).  Not a Happy Camper.

[bhtn75]

Thanks. I'm not in a real pinch. I over withheld and overpaid the required estimated tax to the extent (I know that's a dumb thing to do) that I don't owe a penalty even with TT ignoring the first period's overpayment. I'd just like TT to give me the opportunity to file an accurate return. Can they do it?

[Spino]

@bhtn75 Should be no problem!

[Spino]

@flemming My return went through both TT's error checking and then was accepted by the IRS within an hour or so. Is it possible that something else is causing your problem? 

Remember you can run the error checking repeatedly, changing things and changing them back until you get your return just right. Just go to the review section in the interactive menus and keep going through it until you isolate the problem. As you said to me, good luck!

[johnny_cee]

Same here I finally updated and re-ran the error check. the 2210 form now no longer shows up as an error or says it needs to be filed. The penalty has been added to what I owe, I can now e-file

[nivin]

I opened a support ticket today for the 2210 issue with an overpayment for Q1/Q2 not being properly credited against Q3 using the regular method/Part IV. Support directed me to https://ttlc.intuit.com/community/tax-topics/help/why-is-my-form-2210-not-calculating-lines-18-26-co... to sign up for notifications on a fix as the issue appears to be known within Intuit now. Fingers crossed.

[Worried]

@VolvoGirl What  should I do if I filed my tax return with Turbo Tax, but didn't pay the penalty that Turbo Tax indicated I owed for underpayment of estimated tax?  I under payed tax for 2019 and payed that with my 2019 tax return.  I under paid again in 2020 (I thought by increasing my exemptions I would pay enough, but I was still short $2800).  I paid the IRS that amount by direct bank account transfer.   When figuring my tax payment with turbo tax I was asked when I planned to pay the penalty.  Turbo tax stated the penalty would increase the longer I waited to pay so I entered the date that I was filing my return which gave me a penalty of $33 (as best I can recall).  Turbo Tax did not include the amount on line 38 when my return was generated.   I do not see the form 2210 included with the return that was generated and e-filed with the IRS.  I do not see anything owing when I look at my IRS account online.   How do I pay this penalty and not occur more penalties?  Also, my husband is no longer working, so I don't think I need to pay the estimated taxes for 2021 but that worries me too.  I am not claiming any withholdings on my income so I should be paying the max.  

[bhtn75]

Yes you can file, but if you overpaid the required first period withholding and estimated tax (Line 18 column (a) of Form 2210 Part IV), the overpayment amount shown in Line 26 column (a) was not taken into account when TT figured your penalty. That is the Form 2210 Part IV error that TT has yet to fix.