Common questions about Form 2210 in Lacerte

Below, you'll find answers to frequently asked questions about Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts, in Lacerte.

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Why does Form 2210 print when it's not required?

When an underpayment penalty applies, but Form 2210 isn't required, Lacerte will generate the 2210 Worksheets to figure the penalty amount so that you can include it in the balance due on the return. See here for more info.

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How do I enter quarterly interest rates?

To enter/edit the federal and state interest rates in the global options:

1. From the Settings menu select Options.
2. Select the Interest Rates tab.
3. Click on the Get Interest Rates button to download the interest rates or manually enter the IRS interest rates for each period (format is X.XX).
4. Scroll down to the State Interest Rates section.
5. Enter the state rates manually for each period (format is X.XX).

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Where do I enter other payments and refundable credits?

Lacerte will automatically carry the payments and refundable credits from the tax return to Form 2210. Only the payments and credits specified in the IRS Instructions for Form 2210 will flow to this line.

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How do I generate Form 2210F?

1. Go to Screen 8, Penalties & Interest.
2. Locate the Underpayment Penalty (2210) section.
3. Enter the ​​​2022​​​ adjusted gross income.
4. Enter the ​2022​ tax liability (-1=none).
5. Enter a 1 in 1=Form 2210-F.

If the 2210-F isn’t generating based on your tax liability, choose option 3 to force in the Form 2210 options field.

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How do I suppress Form 2210 and the calculation of underpayment penalties?

There are two options for suppressing Form 2210, Underpayment of Estimated Tax.

To suppress Form 2210 for all clients:

1. Click on Settings.
2. Click on Options.
3. Select the Tax Return tab.
4. Scroll down to the Federal Tax Options section.
5. Select Suppress from the Form 2210 option drop down menu.

To suppress Form 2210 for a specific client:

1. Go to Screen 8, Penalties & Interest.
2. Select Suppress from the Form 2210 options (Ctrl+T) [O], in both the Federal and State columns.

• When preparing a Multi State return in Lacerte various states may generate a Underpayment Penalty as well.

Another option to suppress the form's calculation:

1. In Screen 8 Penalties and Interest. 
2. In the second column for the State scroll down to Form 2210 (O). 
3. Click Ctrl+ E to expand , or double click to open box.
4. Enter a -1 and next to it the State you would like to suppress the penalty for.
5. Repeat these steps to suppress for each state in which you do not want a penalty generating.

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