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Self employed
Yes. You can annualize your tax. Here is how to enter the information in TurboTax Online:
- Navigate to Federal > Other Tax Situations > Additional Tax Payments > Underpayment Penalties > Start or Revisit
- Continue through the questions until you arrive at the screen Annualized Income Method, answer Yes, and Continue on the next 2 screens
- Enter the what you earned in the first 3 quarters on the screen Annualized Adjusted Gross Income, ensuring the amounts are cumulative for the year. Note, that the large amounts from Q4 will automatically be assigned to Q4.
- Similar to step 3, on the screen Itemized Deductions on Schedule A enter the what your deductions were in the first 3 quarters, ensuring the amounts are cumulative for the year.
- Continue with the process for the following screens until you reach the Conclusion, which needs to be unchecked if you want to see the results.
- Continue through the interview, answering the questions, until you reach Underpayment Penalty, which tells you what the underpayment computed using the annualized method is.
See also: Why am I getting an underpayment penalty if I'm getting a refund?
‎April 2, 2025
7:22 AM