I would like to minimize my underpayment penalty by completing the Annualized Income amounts for the periods described on MI-2210. Almost all the income for the year came on two dates, 10/9/24 & 12/2/24. The amounts of income on these two dates have associated 1099R forms indicating taxable income. The sum of income received after 8/31 is greater than the 12 month income on the Annualized Income Worksheet column D section of the MI-2210. I would have to enter negative income for the first three periods to have an agreeing annual income amount and that is not correct.
There is something I do not understand about how to the amounts of taxable income. The ones on 12/2 were from Roth Conversions, the ones on 10/9 were terminations of annuity contracts. The associated 1099Rs list amounts of taxable income.
If I can correctly enter the amount of income received after 8/31, I would like to subtract that amount from the yearly income to arrive at a monthly annualizing amount for the the other periods.
