Underpayment form 2210

[yatoshura]

TurboTax is trying to estimate my underpayment penalty. There is a question that asked for numbers in Form 2210 from my 2024 tax return. I don't have this form in my 2024 tax return. What should I input for my current form? Can I simply put $0? That seems to eliminate the penalty even though I did not meet all the criterion it asked.

[LindaS5247]

If you did not have Form 2210 last year and no underpayment penalty, than you should enter $0 in the "prior year tax" field. If you had an underpayment penalty in 2024, you should enter that amount.

TurboTax calculates your underpayment penalty using Form 2210 based on your current year's information. If you don't file the form, the IRS will calculate it and send you a bill.

See also:

How to Avoid Penalties for Underpayment of Taxes

Why am I getting an underpayment penalty if I'm getting a refund?

What is Form 2210?

Please return to Community if you have any additional information or questions and we would be happy to help.

[yatoshura]

I don't have the 2210 form for 2024, but I also had underpayment and ended up paying the additional taxes owe of about $25000. Was my penalty waived last year or was it somehow missed? Just wanted to be sure that I'm not putting in $0 incorrectly if there is supposed to be a penalty. Anyway to verify this on TurboTax?

[LindaS5247]

Generally if you don't send in Form 2210 with your tax return, the IRS will send you a bill.  It may have been waived. It's possible it got missed. If you had an underpayment penalty last year, you should enter it.

How to this verify in TurboTax

1. View your Tax Summary/Form 1040:
   1. Open your 2024 return in TurboTax.
   2. Go to Tax Tools > Tools > View Tax Summary.
   3. Click Preview My 1040 on the left side menu.
   4. Look at Line 38 (Estimated Tax Penalty). If it is blank or $0, you did not file a penalty payment.
   5. If you used a desktop program, open your 2024 return in your 2024 desktop program, switch to forms mode by clicking on Forms at the top right of your TurboTax screen and scroll down your forms listed on the left to look at your Form 1040.
2. View your Form 2210:
   1. If you are using a Desktop Program, Go to Forms Mode (Desktop) by clicking on Forms in the top-right of your TurboTax screen
   2. Search for Form 2210. If it is there, you can see if it was calculated or if a waiver was applied.
3. Check your Other Tax Situations:
   1. Go to Federal > Other Tax Situations > Underpayment Penalties.
   2. Review the entries to see if "Request a Waiver" was checked. 

If you paid at least 90% of your current year's tax (2024) or 100% of last year's tax (2023) (110% if AGI was high), you might not owe a penalty even if you owed $25,000 at filing or it may have been waived.
 

The easiest and most reliable way to check this is to check your IRS Tax Account Transcript for 2024 at IRS.gov. This will show exactly what was filed, paid, and any penalties that were assessed. If you don't have an account you can create on using that link as well.

If you have additional information or questions regarding this, please return to Community and we would be glad to help.