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jnagcat
Returning Member

Calculation of PA 2024 estimated tax when quarterly income is not constant

For 2024 PA 40 tax filings: I am using TurboTax and seeing a penalty applied (line 27) with codes of E and Y.

My income is very irregular in each quarter with a big jump in 4th quarter. I've paid more than 100% of my total tax from 2023 by the end of 2024. (I did not pay all my total calculated estimate tax due in each quarter of 2024 because I did not know in each quarter what my total 2024 tax was going to be.) How do we get TurboTax to calculate any penalty on uneven quarterly income?

 

Can I use alternatives to codes E and Y?

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1 Reply
MarilynG1
Employee Tax Expert

Calculation of PA 2024 estimated tax when quarterly income is not constant

Add up the monthly income received during a period of 12 months. Divide by 12, multiply by 3 for each quarter.  There's your annualized income.

 

In your Pennsylvania return, say NO you don't want PA to calculate your Penalty.  When 'Let's see if you earned the money unevenly' comes up, you can enter your quarterly calculated income, and you should not incur a penalty. 

 

Be sure to pay your quarterly Estimated Taxes. 

 

Here's more info from the PA Dept. of Revenue. 

 

 

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