ErnieS0
Expert Alumni

Retirement tax questions

The IRS allows your to adjust the underpayment penalty if your income is uneven throughout the year, but the tax rate is based on the whole income for the year so there is no way to average that.

 

To annualize your penalty:

  1. Type underpayment of taxes in Search in the top right
  2. Select Jump to underpayment of taxes
  3. Continue to Annualized Income Method, say Yes and follow the screens
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