Turbotax does not count previous-year refund applied to estimated taxes s being paid by April 15th

[RustyShackleford]

I owe a substantial underpayment penalty on my 2021 return.   But I also had a substantial refund on my 2020 return, which I had applied to my 2021 estimated taxes.   Examining Form 2210, specifically line 11, I find that the refund was applied to the amount in Column B (6/15/2021).   But the instructions for Form 2210 state "Any overpayment from your 2020 return applied to your 2021 estimated tax payments. Generally, treat the payment as made on April 15, 2021."  And Turbotax will not allow me to override this to include the previous year refund to Column A rather than Column B.

[RobertB4444]

For 2021 all estimated payment due dates were pushed from April 15th to June 15th in Louisiana, Oklahoma and Texas.  So there were no estimated payments due in column one if you live in one of those states - only in column two.  

If that doesn't apply to you then it is a good idea to first clear your cache and cookies - which means removing all of the temporary programs that can gum up your web browser.  If that doesn't work, try using a different web browser.

Here is a link on how to clear your cache and cookies.

You are probably better off having someone walk through the return with you to look at your entries so I recommend getting live expert help.

Here is a link to finding a TurboTax expert.

However, that requires upgrading your product which may be an expense you don't want.  In that case you can call an expert and ask questions over the phone.

Here is a link to the TurboTax Phone Number.

[RustyShackleford]

A little hard to see how my web browser is responsible for Turbotax doing the wrong thing.

I suppose if the first estimated-tax due day is June, then it kinda makes sense that refunds applied from the previous year would be credited in June instead of April.  But that's not the case federally, nor in my state.

[ZoltanB45]

Did you make a 2nd quarter payment, aside from what Turbo Tax is crediting the refund amount to? If so, I would move that from the 2nd quarter line to the first. The IRS will see that the total payments for the year are still accurate. This solution only helps you 100% if your 2nd quarter payment is about the same as the refund amount that should have been used for the first quarter.

[RustyShackleford]

Didn't make any 2nd quarter payment at all.

Oh well, we're asking for a waiver of the penalty.  One of the valid excuses apparently is that wife retired in 2021.  I fail to see how that really is justifiable, since the big shortfall is due to her taking $50K in short-term cap-gains and not paying estimated taxes on it ... 

Also, we filed separately in 2020, and I think changing from MFS to MFJ (or the reverse) is considered a valid excuse.   However, we amended to MFJ for 2020 (because she took a huge hit on IRMAA) but of course that amended return hasn't been processed yet (accountant did it, and said it HAD to be by paper), so hopefully IRA agent reviewing waiver will still think we filed MFS in 2020.

[Cynthiad66]

Yes, all request for waiver of penalties must be made to the IRS.  The IRS Agent will have information on how you filed for 2020 along with any other circumstances you provide to make the decision whether to waive penalties or not.

To request a waiver when you file, complete IRS Form 2210 and submit it with your tax return. With the form, attach an explanation for why you didn't pay estimated taxes in the specific time period that you're requesting a waiver for. Also attach documentation that supports your statement.

@RustyShacklefor