topic Annualized Income in Retirement tax questions

Annualized Income

RRNelson — Fri, 28 Feb 2020 21:00:41 GMT

I started doing some 401K/IRA distributions and Roth conversions at the end of last year and made estimated tax payments in the corresponding quarter. Despite entering this distribution information in TurboTax it never even suggested entering Annualized Income information to avoid paying penalties on my taxes due to the 'lumpy' income. This seems like a very basic and common issue with retirement distributions and capital gains yet the information is buried away and not suggested as a possibility by the program. This seems like a glaring defect.

Re: Annualized Income

MaryK4 — Sun, 01 Mar 2020 00:03:44 GMT

Most people do not go through the entire Underpayment Penalty section of TurboTax to see if they can reduce their tax using the Annualized method. If you had a significant penalty, you can amend your return to get a reduction of penalty.

Re: Annualized Income

RRNelson — Sun, 01 Mar 2020 02:14:11 GMT

I don't think I was shown that screen before I started searching for annualized income. Thanks for the information.