How can I get Turbo Tax to use an Annualize Income Installment Method for my Massachusetts State Tax?

[sveit]

I used the Federal Schedule AI and 2210 and provided income  and taxes paid by specific period since 65% of my income was in December.  Using Turbo Tax, how can I do this for my Mass return to avoid the penalty it has calculated for me?

[Cindy0H · Accepted solution]

Go back into the Massachusetts return. You walk through all of the questions until you get to 

• Underpayment Penalty.... Click Exceptions
• None of these apply. 
• Enter 2017 tax liability. 
• The next page will ask if you want to annualize your income. 
• Beware. If you do not get this page, it is due to what you entered on the previous page.

[sveit]

I've walked through my entire MA return, but I never get an "Underpayment Penalty" page to click on Exceptions; however when I get to the page "Your Massachusetts Bottom Line", the penalty is there.  I'm even getting a $1200 refund.  I only see exceptions to the Underpayment Penalty if I jump to Forms.

[Cindy0H]

I don't understand how you can be getting a refund with a penalty. Did you try to enter the annualized income in the Forms Mode? I am wondering why that page is not showing up because you are getting a refund. Could you annualize in the federal return?

[sveit]

I annualized in the Forms Mode and the MA 2210 is not longer in my MA return and the penalty is gone.  It was really unusual.  Prior to this my actual pdf forms had a $1200 (round number) refund with a $28 penalty.  Thanks for the help!  

[Cindy0H]

You are welcome!

[rwiegand]

How do you annualize in forms mode? I can't find a line that lets me do that.