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

[Karis_F]

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.

[Foreman-240]

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).

[Foreman-240]

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

[Karis_F]

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

[Foreman-240]

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.

[Karis_F]

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.

[Foreman-240]

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.

[Karis_F]

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

You can also try opening TurboTax in another browser.

[Foreman-240]

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

[Karis_F]

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