We had medical expenses every month in 2022 which exceeded 7.5% of our Adjusted Gross Income (AGI) for the month. In using the Annualized Method to esimate the underpayment penalty, TurboTax asked for our accumulated AGI and accumulated temized Deduction in the first three quarters as it had already computed our anual AGI and Itemzied Deduction totals from the data entered and gave them in the interview process (dialog boxes) used for the Annualized Method.
How did TurboTax compute the accumulated Annual AGI and Anuual Itemized Deduction which appear to be different from the numbers from our own spread sheet. The Annual AGI value should be stright forward as tehy are not affected by any numbers from the Itemized Deductions. On the other hand, the accumulated vlaues of the Itemized Deduction for each of the three quare are giving me trouble.
Should we use the 7.5% criteria in computing the Itemized medical dedcution every month and accumulated the values for each quarter to enter into the dialog boxes?
Thanks very much for the help. Bye.
