Uneven Income

2 replies
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Hello,

I had uneven rental income in 2019 but I paid equal quarterly ES. Is it a tax benefit if I write 2019 income quarterly or it doesn't make any difference if write just the total annual income? Thank you for your help.

VolvoGirl

Level 15

Sorry not following you. Are you asking about entering the estimated payments? You only enter the total income for the year. Are you asking about filling out the 2210 for underpayment Penalty?

dazimiAuthor

Level 3

Thank you so much VolvoGirl for your reply. I am sorry that my question was not clear. In the State filing, on the page "Annualized Income Method" there is this question "Did you earn your income unevenly during the year?" If I answer "NO" it says "Request for Penalty Waiver" which doesn't apply to me .

If I answer "YES" which does apply to me , the following Table is displayed for State AGI Adjustment.

First Quarter (01/01/19 to 03/31/19)
First 2 Quarters (01/01/19 to 05/31/19)
First 3 Quarters (01/01/19 to 08/31/19)
All 4 Quarters (01/01/19 to 12/31/19)

My question is what is the effect of completing this Table on the tax liability? Is this just for calculating underpayment ES? or the total tax liability is less if one has uneven income? Thanks again for your help.