NY Annualized Income

[alex7003]

Hi, I am filling NY Annualized Income form.  NY income is federal adjusted gross income reduced by 529 plan contribution.   How should I account for 529 contribution deduction when doing quarterly breakdown of income flow?  Divide it by 4 equal parts and subtract from each quarter' use as percentage of total or apply at a last or quarter when 529 contribution was made?

and the following question, what rules apply to deductions in next forms, e.g. use in a last quarter, divide equally or apply proportionally to income?

[MarilynG1]

Yes, you could take the total of your 529  contribution and divide it into the four quarters for calculating Annualized Income.  This amount would be considered to be even throughout the year.

The annualized income is used to reduce penalties on the current year underpayment of estimated tax.

You will need  to calculate how much income and deductions apply to each month so you can compute each "period" on the 2210 annualized method worksheet.

Click this link for more info on Calculating AGI.

[alex7003]

Thank you!