Underpayemt section in Other Tax Situations - Needs Update

[cchpgc]

I have finished my taxes and the underpayment section shows I have a $194 underpayment.

Per the IRS rules you can avoid an under payment if you paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less. I am below the AGI income requirements and file jointly.

I paid $10K to the IRS in the fourth quarter and my 2025 taxes are $7,524.  My 2024 taxes were $9,100.

The Form 2210 could be helpful if I could select Part 2 Box A which would allow Form 2210 to be included with my return but it does not allow me to do that.  After I efile I will need to mail the IRS Form 2210 to get a refund for the underpayment penalty.  I had to do this for my 2023 & 2024 returns.

I hope Turbo Tax can workout a solution so that preparers will not face that issue every year.

[DianeW777]

It depends. If your payment of estimated tax to the IRS was all in the fourth quarter, then a penalty will exist.  If you make only one payment in the last quarter of the year and your income was received evenly throughout the year there will be a penalty.

The IRS tax system is pay as you go, so when you receive taxable income you may be required to pay estimated tax to cover.

There is an annualized method available if you received most of your income in the last quarter.

• What is Form 2210?
• How do I add Form 2210 in TurboTax?

Generally, you can avoid the penalty if your total timely estimated payments and withholdings are greater than or equal to the lesser of:

• 90% of the total tax after credits for the current year, or
• 100% of the total tax after credits in the prior year
• See one exception below.

You can also avoid the penalty if the amount you owe is less than $1,000 as long as any estimated tax payments you made are timely.

Note: High-income taxpayers. If your adjusted gross income (line 11 of your 2023 Form 1040) is greater than $150,000 (or $75,000 if you're married and file a separate return from your spouse), you can avoid a penalty by paying at least 110% of your total tax from the prior year.

[cchpgc]

Per my comment I met the underpayment waiver requirements.

$10K was paid to the IRS in the 4th quarter and this exceeds by $2K what my taxes are on my 2025 return - this also exceeds my 2014 taxes by $1K - the 90% and 100% requirements were met

AGI under $150K - I e filed last Friday so now I will need to mail form 2210 to receive underpayment refund.

Turbo Tax needs to upgrade the under payment section to reflect taxpayers like myself that exceed IRS payment requirements.