Hi - can someone please help.
I have experienced extremely uneven income streams in 2024 that were especially low in three earlier quarters but then (fortunately) appear to be compensating in the fourth quarter. I made estimated quarterly payments proportional to those lower income streams, and now I am trying to model my 2024 taxes using Turbotax23 Desktop (Business version).
As expected, the regular Turbo tax calculation has a large tax penalty due to underpayment of the first 3 quarters based dividing the estimated annual income evenly. I know that if I could correctly specify the quarterly income streams as they were received, the interest penalties would go away.
Tax Hero Niki said on August 2023 to "Navigate here in the program -> Federal -> Other Tax Situations -> Estimates". However, the closest I could find in my TurboTax23 Desktop Business was the Estimates option under Personal / Deductions & Credits / Estimates & Other Taxes Paid, and all it had was the standard ability to make quarterly and other payments. There was absolutely nothing I could find there on how to adjust your quarterly income stream so as to not pay interest penalties for uneven Estimated payments.
I have also looked under Personal / Other Tax Situations, but there is nothing there that comes close to this topic either.
Can someone please tell me where to find an option within Turbotax23 Desktop Business to adjust income streams based on when they were received?
Thanks in advance.
UPDATE -- I just found the lower-down Reply by Martha T on the Annualized Income method and the instructions to look under "Other Tax Situations/ Additional Tax Payments/ Underpayment penalties/" are exactly correct. I've entered my actual income streams and saved hundreds of dollars. THANK YOU Martha T.
