topic How do I enter Pennsylvania income by tax reporting period to eliminate penalty ? in State tax filing

How do I enter Pennsylvania income by tax reporting period to eliminate penalty ?

Foreman-240 — Mon, 23 Feb 2026 17:57:46 GMT

Re: How do I enter Pennsylvania income by tax reporting period to eliminate penalty ?

Karis_F — Mon, 23 Feb 2026 21:25:29 GMT

Pennsylvania allows a taxpayer to annualize income in calculating an underpayment penalty.

On the screen Let's Review Your Underpayment Penalty, there is a question Do you want to want to see if you qualify for any exceptions to this penalty? Answer Yes.

You will get to a screen that asks Let's See If You Earned Income Unevenly. This is where you can enter the income you earned by quarter.

Re: How do I enter Pennsylvania income by tax reporting period to eliminate penalty ?

Foreman-240 — Mon, 23 Feb 2026 21:57:57 GMT

I am unable to find the question you reference. When I get to the question: "Do you want to let Pennsylvania calculate the penalty for you?", I reply NO, then the app takes me to a screen advising what my underpayment is, and then when I answer "Continue", it takes me back to a main menu of many options. I have used this annualized / uneven income feature in TurboTax for Pennsylvania many times before so I am very aware of how it should work, but this year it's not working like it has in the past ... there's a glitch which requires a penalty if I can't enter my state income by reporting period (quarter).

Re: How do I enter Pennsylvania income by tax reporting period to eliminate penalty ?

Foreman-240 — Thu, 26 Feb 2026 14:58:30 GMT

2-26-2026, Still no solution to my PA annualized income problem in the Pennsylvania TurboTax module.

Re: How do I enter Pennsylvania income by tax reporting period to eliminate penalty ?

Karis_F — Thu, 26 Feb 2026 16:08:38 GMT

Follow these steps in TurboTax Desktop to get to the area in the Pennsylvania tax return where you can annualize your income for the underpayment penalty:

1. Go to the main page titled You've Finished Your Pennsylvania Tax Return in the state tax return area that shows all of the tax categories.

2. Go to Underpayment Penalty and click Update

3. On the screen Do you want to let Pennsylvania calculate the penalty for you? answer No

4. On the following screens you will enter the date tax is to be paid and 2024 PA taxable income

5. The next screen is Do you want to see if you qualify for any exceptions to this penalty? Select Yes

6. There will be several questions about exceptions to penalty and estimated taxes. You can click through those to get to the screen Let's See If You Earned Your Income Unevenly. Answer Yes

Re: How do I enter Pennsylvania income by tax reporting period to eliminate penalty ?

Foreman-240 — Thu, 26 Feb 2026 16:18:21 GMT

That's exactly how I've entered my annualized / uneven income, and estimated taxes in the past; however, this year, using the online version of the TurboTax Pennsylvania module, it doesn't work like that ... there's a glitch as I described in my original message. I just tried it again, and the problem is still as I originally described. Also, this is the ONLINE version that I am having problems with.

Re: How do I enter Pennsylvania income by tax reporting period to eliminate penalty ?

Karis_F — Thu, 26 Feb 2026 19:07:05 GMT

Here are the similar steps for TurboTax Online:

1. When you get to the screen Let's Have Pennsylvania Calculate The Penalty answer No.

2. Click through the next two screens to get to Do you want to see if you qualify for any exceptions to the penalty? and answer Yes.

3. Answer questions on exceptions to penalty and if 2025 estimated payments were required. You will then see a screen showing if exception was met.

4. The following screen asks Did you earn your Pennsylvania income unevenly during 2025? Answer Yes then click Continue to get to screen where you can show annualized income.

I tested these steps in my TurboTax Online account and it worked, but reply if you are still having issues after going through these steps.

Re: How do I enter Pennsylvania income by tax reporting period to eliminate penalty ?

Foreman-240 — Thu, 26 Feb 2026 19:21:03 GMT

It's not working that way for me, just loops back from the "Underpayment of Tax" screen to the "You've Finished Your Pennsylvania Return" screen every time.

Re: How do I enter Pennsylvania income by tax reporting period to eliminate penalty ?

Karis_F — Thu, 26 Feb 2026 19:36:25 GMT

Try clearing cache and deleting cookies then log back into TurboTax.

You can also try opening TurboTax in another browser.

Re: How do I enter Pennsylvania income by tax reporting period to eliminate penalty ?

Foreman-240 — Thu, 26 Feb 2026 19:47:00 GMT

Just tried MicroSoft Edge, same results. I appreciate your time but I'm going to have to use a different tax software product.

Re: How do I enter Pennsylvania income by tax reporting period to eliminate penalty ?

Karis_F — Thu, 26 Feb 2026 20:15:56 GMT

The other thing you can try is to delete the Pennsylvania return and let it re-populate.

Re: How do I enter Pennsylvania income by tax reporting period to eliminate penalty ?

user17744735197 — Wed, 25 Mar 2026 21:21:42 GMT

I am have the same error in 2026 desktop as well.

After selecting no to "Do you want to let Pennsylvania calculate the penalty for you"

I am brought to the page that says "your Pennsylvania underpayment of taxes for 2025 amoun is $xxx"

Re: How do I enter Pennsylvania income by tax reporting period to eliminate penalty ?

Karis_F — Thu, 26 Mar 2026 21:11:04 GMT

I tested this in TurboTax Online, and it worked by following these steps:

1. When you get to the screen in the Pennsylvania return that asks Do you want to let Pennsylvania calculate the penalty for you? select No.

2. The following screen will show the date that the tax will be paid. Select Continue.

3. The next screen asks for the 2024 PA Taxable Income and Tax Liability and tells you where on your 2024 PA return to find those numbers. After entering that information, select Continue.

4. The next screen asks Do you want to see if you qualify for any exceptions to the penalty? Select Yes then Continue.

5. The next screen asks for PA 2024 Tax Liability less withholding and certain credits and tells you where to find this on your 2024 PA return. Enter that number and select Continue.

6. Continue through the screens asking about estimated tax payments and enter any relevant information until you get to the screen that asks Did you earn your Pennsylvania income unevenly during 2025? Answer Yes.

7. The following screen will allow you to enter your 2025 income by quarter.

The underpayment penalty will then be recalculated.