Where is Form 2210, since Turbo Tax has calculated an estimated tax penalty?

[kamull01]

Where is Form 2210: Underpayment of Estimated Tax by Individuals, Estates, and Trusts?? And the Form 2210 Underpayment Penalty Worksheet? Turbo Tax 2024 calculated a penalty of $6, so there should be a worksheet to show how it was calculated.

Turbo Tax calculated this estimated tax underpayment penalty because I did not pay the 1st quarter estimated tax payment on time. Turbo Tax says the penalty is $6. Is this the actual penalty? Or is it a Turbo Tax estimate? After Turbo Tax submits it to the IRS, does the IRS go with the Turbo Tax calculation? Or does the IRS re-calculate it and take a different amount from the refund?

[DoninGA]

Click on Federal Taxes (Personal using Home & Business)

Click on Other Tax Situations

Under Additional Tax Payments

On Underpayment penalties, click the start button

[baldietax]

You can get to Form 2210 by double-clicking on Form 1040 penalty line then double clicking again on the worksheet penalty line to see Form 2210.  From what I've seen Form 2210 doesn't appear in the forms list by default unless you've gone thru the deeper Annualized Income (AI) process for uneven tax by quarter.

$6 isn't an TT estimate it's a final calculation using Form 2210 which is pretty straightforward.  Presumably IRS checks it.  Underpayment penalty rate is currently 8%.  You can also have IRS calculate it and send you a bill, but not worth it for small penalty easily calculated with your return and be done with it.

[kamull01]

I went to Federal Taxes > ‘Other Tax Situations’  tab > Additional Tax Payment > Underpayment penalties > Update.   It says “You have a penalty of $6. Do you want to see if you can reduce or eliminate the penalty?” I answered “ Yes”.  I answered the question about fishing and gaming (no), 2023 tax liability (transferred from 2023), 2023 AGI (transferred from 2023), and then answered “Do you want to annualize your income?” I answered “yes”.

Annualized Income
Most of my income and most of my withholding (pensions) is in the 4th quarter.

I entered accurate information for cumulative income for each of the 4 boxes (the end dates do not correspond to the end of a quarter). The penalty was $0. I did not elect to treat the tax as paid when it was actually withheld. There is a Form 2210 now and it is filled out. Line 19 Penalty is $0,   However, there is an exclamation mark by Form 2210 and it says “Not Done”.  ???

I went back and elected to treat the tax as paid when it was actually paid. I entered the figures for each of the boxes, paying attention to the end date for the box.   The Form 2210 now says the penalty is $1. The $1 penalty is assigned to the 2nd box for being 6 days late on the estimated tax payment.  And it still says “Not Done’.   ???

No matter whether I do annualized income only or both annualized income and treating the tax as paid when it was actually paid, both the Form 2210 and the Underpayment Penalty Worksheet have a column for 01/15/2025. It looks like it is expecting an installment of around $11K (!!) by that date. But, my tax obligation was already satisfied at the end of 2024 by the 2024 withholding and the total 2024 estimated tax payments that had been made in 2024.

I have tried to fill in the box on the Date of Payment screen, for “Date you will pay the balance due”. No date will work. Maybe, this is because today is after 01/15/2025. But, as I say, my tax obligation was already satisfied at the end of 2024 and I shouldn't have had any more installments to make.  If I had made an $11K estimated tax payment by 01/15/2025, I would be getting it back as a refund plus the refund that I already have coming.

Something seems not to be working right here??

[kamull01]

@baldietax,

Form 1040 does not have a penalty line to double-click on. It has line 34: amount overpaid and line 35a amount refunded to you, which is $6 less than line 34. That’s all the information on the 1040: these two figures with a $6 difference between them.

[baldietax]

@kamull01 there is line 38 "estimated tax penalty"

[baldietax]

as to your $6 I thought you were just curious about it, not sure it's worth going thru AI process to eliminate and I'm guessing the $1 left over is some sort of rounding error

[VolvoGirl]

@kamull01   The penalty is on line 38.  Yes I had a refund once and still had a penalty for not paying in evenly during the year.  And it is just an estimated amount.  I wouldn't bother about $6 .  And It's common and normal and expected for the IRS or state to bill you for more or send you a refund.

[kamull01]

@baldietax 

Aha!  I needed to scroll down to see line 38 on Form 1040.  When I double-click there on Form 1040, it brings up two other forms: the Info Wks and the 1040/1040 SR Wks. Then when I double-click on line 38 of the 1040/1040 SR Wks, it brings up Form 2210. Then when I double-click on line 19 of Form 2210, this brings up the 2210 Penalty Wks. So, thanks to you, I found what I am looking for. 

Yes, I was just curious.  The $6 is a small amount, but it was the numbers and how TT used them to arrive at the $6 that I wanted to learn.  Thanks to you, I found out.