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Level 3
posted Mar 25, 2021 6:56:14 PM

TurboTax does not include all estimated tax payments when calculating underpayment penalties on Form 2210

While the entry on Form 2210 Line 19 column (a) should include all estimated tax payments made prior to 7/15/2020, TT only includes the first payment. As a result TT incorrectly calculates an underpayment penalty. When will TT correct this bug?

0 4 535
4 Replies
Level 15
Mar 25, 2021 7:25:44 PM

I was able to replicate this as I had two payments for the same date; only one was picked up.  

 

if I combined the two payments , it worked fine. 

 

as long as the payment date is prior 7/15/20, I don't see that combining the payments negatively impacts the penalty owed.

 

Level 3
Mar 26, 2021 7:17:00 AM

I made regular "quarterly" payments, one in each April, June, September, and January (2021). Form 2210 Line 19 Column (a) should sum all estimated payments through July 15, but it only picks up the April payment. Column (b) is not used for 2020. TT probably migrated 2019 code, simply removing column (b) calculations rather than combining them into column (a). Your workaround - combining my April and June payments into a single entry - works, ie, it forces the correct result, but I would rather see TT fix the problem in the software. Anyone who makes estimated tax payments and uses this form to calculate an underpayment penalty may unwittingly overpay the penalty as a result of this issue.

Level 15
Mar 26, 2021 10:19:21 AM

I agree the workaround is suboptimal, but the first estimate wasn't due until July 15 so I suspect posting two payments prior to that date creates the bug. 

Level 3
Mar 26, 2021 10:59:52 AM

Great point! 

 

So unless this bug gets fixed, it looks like the best thing to do is to combine all estimated payments made by July 15 into a single payment in the "First quarter" box, and leave the "Second quarter" box blank (or $0.)