When you enter your income in to use the annualized method to calculate the underpayment penalty, there is a screen called Net capital gains. This page requires you to enter your Long term capital gains and qualified dividends received in each of the periods because these receive the more favorable capital gains tax rates that are different from the ordinary income rates for all other income, which also includes short-term capital gains and those dividends that are not qualified dividends. If you enter each of these specific incomes for the time periods specified, this will get the correct information for the underpayment penalty determination.
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