Capital Gains calculation. Stuck in Annualized Income Method. What to do?

[tonibanning65]

Should there be a payment penalty and is it to be calculated?

[JamesG1]

The annualized income method may be helpful to reduce an underwithholding penalty if a significant portion of your income was earned late in the year.

The method is optional.  If you choose the annualized income method, print out a copy of your IRS form 1040 income tax return and schedules.  The numbers are allocated across the four time frames and generate the numbers reflected in Part III of IRS form 2210 Underpayment of Estimated Tax.

In TurboTax Online, follow these steps:

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Other Tax Situations.
• Click to the right of Other Tax Forms.