Tax Year 2023 was the first time I tried using the annualized method since I stopped working. I'll admit, I don't know if I did this correctly. I didn't try using the What-if option in Turbo Tax 2022 to see if I could use the annualized method for 2023 estimates.
I created an Excel workbook that has multiple linked worksheets for Federal Estimated Tax Worksheet 2-1, 2-5, 2-7, and 2-8. Also, I added and linked worksheets with income interest, dividends, capital gains, and all itemized deduction line items. I tried to mimic as many federal and state forms as possible. Since I have qualified dividends, I used Annualized Income Worksheet 2-7 and 2-8. I track just about everything in Quicken, so I can export the relevant transactions into the appropriate worksheet. As discussed in this thread, , I limited Schedule A line 5 SALT taxes to $10,000 for each reporting period (end of 3/31, 5/31, 8/31, and 12/31). Due to the timing of our property tax payment, the $10K limit was hit during the period ending 8/31. Also, used the 7.5% threshold for Schedule A medical expenses for each reporting period.
Hopefully this is correct. I'll compare to TT2023 annualized income method when I receive all forms.
Do you think I'm on the right track?
Also, I'm trying to learn about the Alternative Minimum Tax as I might need to take some large long term capital gains in 2024. Any comments about incorporating AMT into the Annualized Income method? I am trying to add Form 6251 into the workbook, but I'm not sure how to do this correctly.
Side note: There were some other threads about earlier versions of TurboTax calculating short term carryforward losses incorrectly. I'll manually deal with this if needed.
