All of my income was in the 4th quarter, so that's when I made an estimated tax payment. I entered annualization information in my federal form so it was handled correctly there. That information (like anything beyond the very basics) was not passed to the MA form, so I'm getting hit with an underpayment penalty.
I can see the form 2210 in my MA return, but not edit it in Forms. It says it is calculated, but doesn't link back to tell me where the calculation came from.
There used to be a checkbox in the dialogs for entering an exception to penalties in past years, which is how I entered it before, this year that is gone.
How can I tell the MA return to annualize my income?
Yes, you can return to this section of your return. Follow these steps to get there in TurboTax:
You will see the Underpayment Penalty Selections-- None apply
2018 Massachusetts Tax Liability- enter amount
Underpayment Penalty--see below
Yes, that would be lovely, and the way I handled it in past years. I wish it were that easy!
Now the dialog does not present a section on underpayment penalties at all, and if I navigate to that topic using the Topic List menu it takes me to a window titled "Apply refund to 2020 Estimated Tax?" (pretty completely irrelevant, as far as I can tell), I can enter an amount to apply to 2020 estimated taxes. Clicking the Continue button takes me directly to "Your Massachusetts Bottom Line" with no further questions or choices related to underpayment penalties. It's as if the link in the "Topics List" is pointing to the wrong page. I don't know of another way to navigate to that point, and there is apparently no longer any way to report bugs.
Thank you for responding!
Yes, you can return to this section of your return. Follow these steps to get there in TurboTax:
I also discovered, just a few minutes ago. that if you squint your eye just right and click in the exact right pixel of the box on the form you can also enter annualization information directly on form m2210. Must of tried 50 times before hitting the right spot that opened up a data entry field.
Thanks for your patience and help.
Concerning if I should annualize my return for fed and state. I assume I would have to annualize both to lessen the tax penalty assigned by both? If I decide after checking option to annualize, can I back out of this later, and decide not to in the program? I know I have to calculate income to each quarter, but do I have to do the same for interest and dividend income, and money made with exempt bond interest, etc? My federal AGI, is much more than my state of Mass amount shown for the prepopulated field in annualization program for Mass. Have any idea why this is so?
Possible to get an answer? Thanks
Concerning if I should annualize my return for fed and state. I assume I would have to annualize both to lessen the tax penalty assigned by both? If I decide after checking option to annualize, can I back out of this later, and decide not to in the program? I know I have to calculate income to each quarter, but do I have to do the same for interest and dividend income, and money made with exempt bond interest, etc? My federal AGI, is much more than my state of Mass amount shown for the prepopulated field in annualization program for Mass. Have any idea why this is so?
@sonzoil The annualization has to be entered to reduce the penalty. If all of your income lands in December you should be able to reduce your penalty. If you change your mind and decide not to annualize you just need to go back and change the check box from annualize to don't annualize and you're all set.
As for why Massachusetts income is lower than federal it would depend on what type of income you have in your return. Massachusetts has different rules for what is taxable than the federal government, as well as what is deductible.