Desktop Deluxe version. When figuring underpayment penalty and having TurboTax compute the penalty, on performing Smartcheck, I receive an error that 'IRS to Figure Penalty Box You must check this box or obtain an update before you file this return. To receive an update, select Check for Updates from the Online menu to go directly to our Web Site.'
TurboTax will compute the penalty and include it in my payment, but then presents an error that I must have the IRS compute the penalty. When I select that IRS will compute the penalty the penalty is removed from the payment amount. I want the penalty included but cannot without creating an error. Updating TurboTax will not clear the error. How to I have TT calculate the penalty, include it in the payment, and not have a error?
If you want to include the penalty, you will need to wait until Form 2210 is finalized by the IRS and updated in TurboTax which is scheduled for 02/15. Federal Forms Windows Release Dates
So, you either have to wait until that form is finalized next month or select the option to allow the IRS to compute the penalty.
Why am I getting an underpayment penalty if I'm getting a refund?
If you want to include the penalty, you will need to wait until Form 2210 is finalized by the IRS and updated in TurboTax which is scheduled for 02/15. Federal Forms Windows Release Dates
So, you either have to wait until that form is finalized next month or select the option to allow the IRS to compute the penalty.
Why am I getting an underpayment penalty if I'm getting a refund?
Excellent answer, perfectly on-point! Why doesn't TT say it that clearly rather than being cryptic and unhelpful (that I must have the IRS compute it or download an update... without saying the update's not available)?
Now 2/8/2019 and error still exists. Update no help! I paid 87% of my tax due. I thought penalty waved in 2018 if you paid at least 85% of taxes due?
Looked up forms and the 2210 now showing not updated until 15 Feb. I believe you are correct that the penalty is waived if you paid at least 85% and request to have it waived.
The dates are always estimated.......You are referring to a calculation used to determine whether or not you need to pay estimated taxes next year. The underpayment penalty is assessed in any quarter you fall short - see this FAQ for more details.
And you can always ''check the box'' and have the IRS compute it. Unfortunately, if you want that form, you have to wait a little longer..;)
TurboTax informed me that I will need to pay a penalty. For the reason cited here, the penalty was not included in my tax due. I just filed my taxes. How do I pay the IRS the penalty?!
It is Feb 18 2021 I am having this same problem in trying to do my 2020 taxes. Is it the same issue? Form 2210 is not finalized yet by the IRS? If so, when will it be finalized so I can do an update. I have done a TurboTax update every time I log on, today and about 5 times between 1/1/21 and yesterday.
I just checked the link below. Form 2210 is still being finalized by the IRS with a target date of Feb 25, 2021.
Thank you for the information. Is there a way to go back and uncheck that box? I didn't want it, but was trying to file electronically. There are more updates I need to wait on for the state, so have to wait anyway.
Thanks.
Are you trying to remove your state tax return and just file your federal for now? If so, here's an article that will provide the instructions.
Can I file my federal taxes now and skip my state for later?
If you still need help, please reply to this thread.