I am dealing with an underpayment issue. I was thinking about using the Annualizing Income option to reduce the underpayment issue.
Would doing that increase the chance of an audit?
In TurboTax, for each section they ask for I had some questions:
Annualized Adjusted Gross Income
Net Capital Gains
- What constitutes Qualified Dividends. Where can I find this information vs other dividends?
Deduction for Qualified Business Income
- Where do I see this information and how its divided quarterly?
Other Taxes
- I see a tax amount in this area but I cannot see where it is from or how to identify which quarter the taxes are present in.
Other Credits
- I have a credit amount here but I cannot see where it is from or how to identify where which period the credits are present in.
What are some other cons to using the annualized income instalment method vs the regular way?
