Underpayment penalty calculated disregarding last year's taxes

[msw555]

After entering my 2021 tax details, TurboTax is charging me an underpayment penalty.

According to IRS, penalty is generally not owed if ones withholding + estimated tax payments for 2021 are greater than 100% (or 110% for high income) of the tax paid for the 2020 tax year. This is my case, hence I should not need to pay a penalty. Reference: https://www.irs.gov/instructions/i2210.

However, since I did not file my 2020 taxes with TurboTax it can't know how much taxes I paid in 2020, hence it can't possibly take that into account.

How can I make TurboTax aware of my 2020 taxes, so it can take that into account and not charge me an underpayment penalty?

[FangxiaL]

You can go to Other Tax Situations to visit the Underpayment Penalties in the Additional Tax Payments section. 

[msw555]

I actually went through the Underpayment Penalties in the Additional Tax Payments section. But nowhere in this flow does it ask for 2020 taxes.

[FangxiaL]

Follow these screens, you should be able to get to the part where you can enter your 2020 tax liability, etc.:

[msw555]

As I mentioned before, I did go through this flow. It does not ask for the 2020 tax liability amount. Can you take a screenshot of a screen that asks for that amount? Because I’m not getting there and I don’t see it in the screenshots you attached. 
Thanks for your help!

[FangxiaL]

I am posting the screen after selecting No:

[FangxiaL]

[msw555]

Oh interesting, here is what I get in the same screen. It asks me for the 2020 Filling Status, but not for the 2020 Tax Liability. Do you know how I can fix this issue?

[msw555 · Accepted solution]

Actually, I do get this question. It just appears on the next screen for me.

However, this screen asks for an amount from my "2020 Form 2210, line 4 or Form 2210-F, line 6". I do not have form 2210 / 2210-F in my 2020 taxes. This form is only required if paying a penalty, which I did not in 2020. That's why I skipped it so far.

Anyway, I just looked up the IRS instructions for 2210 and line 6 can be derived from Form 1040, line 25d. So I entered that amount and it finally eliminated my penalty.

IRS instructions for filling form 2210: https://www.irs.gov/instructions/i2210#en_US_2021_publink[phone number removed]

This resolves the issue. Thanks.

[DaraLO]

@msw555 So glad you were able to resolve this issue.  Thanks for providing an update!