What is Form 2210AI and why do I have to complete it manually?

[SteamTrain]

IF...

1)  if you paid quarterly estimated taxes, with un-even amounts during the year....then you may need to fill out that form to avoid underpayment penalties, even if you have a refund.
2)  If you have a large balance due, and if you had unexpected large 4th Quarter distributions from Mutual funds, .then you may need to fill out that form to avoid underpayment penalties.
3) If you have a large balance due, then you may want to try to fill out that form to avoid underpayment penalties.

But yes, you would need to fill out each of the "quarters" manually from your own records.  You could start on it...then delete it in Forms Mode, then go thru your final Federal review, and look at your 1040 to see if any penalties are there...and if there...whether it is worth your while to try to limit  (I usually don't bother if under ~$40 penalty)

[bmiesse]

Now I'm very confused.  I got a refund last year and expect nearly the same this year.  So why would i need to complete this form?  TurboTax flags it as an error when i try to complete my Federal return.

[swise3]

furnace rebates

[LisaBr · Accepted solution]

You can delete this form and this will help you move on to complete your filing. 

Form 2210 is IRS form that relates to Underpayment of Estimated taxes.  You are not required to complete it since the IRS will figure the penalty, if any, and let you know if you owe anything additionally . 

 Here's how to Delete a form:

1.  Go to My Account

2.  Select Tools

3.  Choose Delete a Form

4.  Find Form 2210 and select to Delete. 

5.  As a step to be sure the form has been deleted, run through step 4 once more to be sure that form was deleted as well as any related worksheets or forms. 

TurboTax is a computer program that picks up on information from the interview sections and sometimes what is put there generates issues that can not be removed in the interview session.  It becomes "written in stone".  In order to correct, we must delete as forms along with worksheets and related forms.

This should resolve your issue.  I've attached a link to the actual form so you can verify that the IRS does not require completion.

https://www.irs.gov/pub/irs-pdf/f2210.pdf

[bman292929]

This is not correct.  My tax due is $120.  My tax last yr was $0.  This automatically means I have no penalty, so why are you forcing me to annualize my income and file the 2210???  I've deleted the form, but the fix errors still forces me to address this form

[SteamTrain]

Go thru the "Underpayment Penalty" section on the "Other Tax Situations" page, and there is a selection in that interview to NOT prepare the 2210AI, and let the IRS calculate it.

They will  never come back to bill you if you are correct.

[bman292929]

I did go through this and the first question is "you had no tax due last yr and were US citizen", yes to both is supposed to not require the form, but it still says you're required to file the form.  Wrong.

So I went through the Fix Errors, entered 0 in all the numbers and then the form showed up again and i deleted it for the second time.  Fix Errors now lets me past this.  Finally.  

But this is WRONG!  Every year this product gets worse and worse, yet they never improve the system.  Still just suck down all this money from users and never improve their rules engine.  I could see these problems next year when there is a massive change to the tax laws, but there hasn't been anything that significant, yet they always have all these problems.  Time to move to TaxCut.

[scotts]

Yup, the TT software sucks regarding this form. Major fail.

[amfalk]

I'm having the same problem.  There seems to be no workaround except to mail the return.  I'll be looking for new tax software for next year.

[SteamTrain]

@scotts
@amfalk

Form 2210AI during Error Check

If your Form 2210AI showed up unexpectedly, with a Federal Refund, but maybe 3-to-12 errors during your Review & Error Check....I can help you get rid of it.

But it depends on whether you are using the Desktop/download version of TurboTax, or the Online Browser-based software.  The procedure is different for each one.

___________________________

First, a warning.  .....after deleting it, you will need to  check line 79 of the form 1040  (or line 51 of a form 1040A).

IF there is a tax penalty that shows up on that line, then you would need the form 2210AI, (or 2210) to reduce or eliminate that penalty....but I wouldn't bother unless the penalty is more than $50.  

...(.it's painfully tedious to do a 2210AI if you've never done one before, and if you have, you'll avoid the hours of extra work needed for minor $$ penalties)

________________________________

Online Software:

1) Get into your tax file again, and start the Review & Error Check until the first form 2210AI error shows up.

2) Put a "1" in the first error box, and continue to the next error

3) Go over to the left side of the screen and click on "Tax Tools"....then "Tools"

(For those of you with narrow screen devices, you might need to click on the upper-left hamburger stack to get the left-menu to show up)

4) from the pop-up menu, select "Delete a Form"

5)  scroll down to the form 2210AI and delete it

6) scroll down to the bottom, click on "Continue With My Return" to get back to your tax return.

7) Run thru your Review and error check again to make sure it's gone....though, you might have different errors to deal with.

_______________________________

Desktop Software;

1) Start thru your error check again.

2) Until the first Form 2210AI error shows up,

3) Now switch immediately to "Forms Mode".

4)  Delete the form 2210AI then return to the Step-by-Step

5) it should be cleared of that form 2210AI now.  

6) Run the error check again.  You might have other errors that need to be dealt with, but the 2210AI errors shouldn't show up again.

[amfalk]

Not helpful.  A small penalty will be due as in prior years.  But in prior years the turbotax software prepared the form in the way that the IRS will calculate the penalty and just added it to the return.  Now turbotax insists that I make entries of each category of tax item that goes into the form and I have absolutely no way to do that.  Why don't you just calculate the penalty and add it - as in all prior years?  It infuriates me that I paid for the premier software and now because you won't calculate the penalty I must mail my return in.

[SteamTrain]

I can get it to work with my desktop software when I go thru the underpayment penalties section on the Other Tax Situations page.  Yeah, I still have to go thru a couple pages of "stuff" but eventually I get a "Let the IRS Bill me Later" button.

....When it asks if I want to use the Annualized Income Method I say "No".
..."No" to Actual Withholding page
...The page that asks for a date to pay..I left blank.
..."No" to Penalty Waivers page
....then the next page has the "Let the IRS Bill me Later" button

[jasonsmentore]

on a I mac this form is does not have a delete button

go to other tax situation  

go underpayment  penalty 

click all the way through till you see the 2017 tax amount 

delete the amount and put 0 and that will delete the form 2210