I recommend you calculate the Form 2210 underpayment penalty in the software while you are preparing the return and can enter all the answers to the questions, especially if you don't like surprises.
The way you will have the less penalty is if you do the annualized method, which is where you will break down your income and deductions over various periods of the year.
That way, the annuity distribution won't be included in your income until the end of the year, when you actually received it.
There is a link below for the instructions for the 2210, if you have questions.
The Form 2210 is not available to be printed or e-filed with your return until 2/25/21.
IRS Instructions for Form 2210
[Edited 02/18/2021|5:31 pm]
