Does the Deluxe version have a way to report varying income over the tax year

thavenar · ‎June 5, 2019

Last year I was penalized because I had a sizable capitol gains distribution at the end of the year. Even though I paid the estimated tax on time, the assumption by the IL Dept of Revenue was that the income was earned evenly throughout the year. I talked to a person on the phone and he told me there was a form for reporting this uneven income. I cannot find the form. Will the Deluxe version be able to handle this situation.

VolvoGirl · ‎June 5, 2019

Yes. All versions have it except the online Free Edition. You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you. It's form 2210.

It's under
Federal or Personal (for Home & Business Desktop)
Other Tax Situations
Additional Tax Payments
Underpayment Penalties - Click the Start or update button

If you have the desktop program you can switch to Forms Mode (click forms in the upper right (left for Mac)) and open the 2210 form.

Don’t know if filling this out flows over to the state or you have to find the state form by going through the state interview. It will probably be at the very end of the state questions.

Anonymous · ‎June 5, 2019

you may want to go back and file an amended return with form 2210

complete step six the annualized income method.

if the capital gain dividend was received in December then it would only be reported in the 4th column.

however note that you have to break down each component of your income (what makes up line 9 on the IL-1040) for the first 3 months, first 5 months, first 8 months the 4th column line 38 should be line 9

Illinois could ask for proof.

here's a link to IL-2210 instructions.

https://www2.illinois.gov/rev/forms/incometax/Documents/currentyear/individual/il-2210-instr.pdf

no guarantee Illinois will abate the penalty.

Does the Deluxe version have a way to report varying income over the tax year

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