TurboTax form 2210 Part III Penalty calculation wrong

[helloWorld666]

Hi there,

The penalty calculation in TurboTax form 2210 is wrong.

I sold stocks in Q4 only, triggering capital gain, for example $1000 estimated tax is required by 01/15/2024 but I didn't pay, so I should only get a penalty for missing paying $1000 for Q4 only.

However TurboTax calculates the underpayment penalty assuming I missed all Q1, Q2, Q3 and Q4 deadlines. And assume I should pay estimated tax $250 in Q1, $250 in Q2, $250 in Q3, $250 in Q4, and calculates the penalty based on missing estimated tax since Q1 all the way till Q4, this is totally wrong, how to correct its calculation?

2nd question in Form 2210, I've chosen Part II box A, so it's not necessary to include page 2, how to delete page 2? there is no option to do so.

[DaveF1006]

Yes, the IRS is specific about making estimated tax payments evenly through the year. Here is what they mention.

Generally, taxpayers should make estimated tax payments in four equal amounts to avoid a penalty. However, if you receive income unevenly during the year, you may be able to vary the amounts of the payments to avoid or lower the penalty by using the annualized installment method. Use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts to see if you owe a penalty for underpaying your estimated tax. You can utilize the installment method in Turbo Tax.

The law allows the IRS to waive the penalty if:

1. You didn't make a required payment because of a casualty event, disaster, or other unusual circumstance and it would be inequitable to impose the penalty, or
2. You retired (after reaching age 62) or became disabled during the tax year or in the preceding tax year for which you should have made estimated payments, and the underpayment was due to reasonable cause and not willful neglect.

There is no option to delete page 2. It is part of form 2210 to be sent to he IRS even though there may be blank entries on page 2. 

Topic 306-Estimated Tax Penalties