how do i find the question i asked earlier today regarding annualized income method? it doesn't appear when i search for that topic

[IsabellaG]

Do you mean this one? 

[JST4]

Yes.  Thanks for responding.  i googled it and found out if I sign in and click on my profile the question will appear.  i was hoping I would see an answer to the question.  I am stuck on the proper way to enter deductions so it takes into account the SALT limitations.

[VictoriaD75]

The state and local tax (SALT) limitations will be automatically applied on your return. Just enter the full amount of your state & local incomes taxes or sales tax, real estate taxes, or personal property taxes, and the TurboTax software will apply the $10,000 SALT limit on Schedule A. You do not have to make adjustments to the dollar amounts you report for compliance with the limit.

@JST4 

[JST4]

Does that apply when entering the amounts in the 3 boxes I mentioned in my question ? So my total deductions through 8/31 can be greater than the total Turbo Tax displays?

And do you have an answer for my income question?

[JST4]

here is the income question also related to annualized income method:

AND on the annualized income side, I entered the amounts as received in the date boxes.  I have a capital loss carryover.  Do I divide it by 12 and then add it accordingly so it accumulates over the year?  Or do I do nothing, in which case TT takes it out for me in the 1/1/24-12/31/24 prepopulated total?

New option-

Or do I divide it by 3 and allocate it that way?

[DawnC]

I don't see a reference to the 3 boxes you mentioned, but if you open or sign in to your return and search for penalty, you can use the Jump to penalty link and enter your annualized income amounts in that section.   

[JST4]

Boxes you aren't seeing are in the Other Tax Situations when working the way through screens to reduce or eliminate a penalty

Other Tax Situations, when you get to the screen for deductions, Itemized Deductions on Schedule A,

there are dates with boxes next to them

1/1/2024-3/31/2024  -then a box to enter your #

1/1/2024-5/31/2024  then a box to enter your #

1/1/2024-8/31/2024 then a box to enter your #

1/1/2024-12/31/2024  Then Turbo Tax provides the total 

[DawnC]

If you want to go back to those boxes, click on the search bar, search for penalty - click on Jump to penalty, than click through the screens.   When asked if you want to annualize your income - answer YES and you will get those screens again.   See this TurboTax FAQ

[JST4]

Re:SALT-  I am doing the annualized income method.  It asks me for deductions by time periods ending at 3/31, 5/31,8/31 and then gives me the turbo tax total.  In order to come up with turbo tax total i need to reduce my deductions so my total isn't greater than the system total.  Do I just subtract the amount i am over from the period ending 5/31 as that is the time frame that put me over the $10K limit.

Thank you.

[JamesG1]

Your sales and local taxes (SALT) deduction is capped at $10,000 and you are utilizing the annualized income method for IRS form 2210. 

If your records show that you exceeded the $10,000 amount in the month of May of 2024, then your sales and local taxes would only be reflected in the time periods ending in March 31, 2024 and May 31, 2024.

No sales and local taxes would be reported for the subsequent periods reported on the form.

@JST4 

[JST4]

I understand that i don't enter any additional state and local taxes beyond April, the month i max out.

My question now is;  do i adjust the April state and local tax numbers so that for the period ending May, I max out at the $10K cap?   

I think that's what I need to do, i am looking for an expert opinion to confirm my suspicion.

Along the same lines, I have a capital loss carryover.  I finally have enough gains in December to offset the carryover loss.

So, my question is:  Do i reduce the amount of capital gains for that period, which is the one that I have enough gains to offset the loss?   Or do I divide the loss by 12 and apply a little of it across the year?

You have been helpful.  PLEASE PLEASE RESPOND TO THESE QUESTIONS!

THANKING YOU IN ADVANCE.

[KeshaH]

Yes, adjust your numbers so that for the month ending in May your tax deduction equals the amount that TurboTax has for that period.

RE: your capital loss carryover and capital gain. You can apply the full $3,000 capital loss limitation to Q1 (and it will roll forward to Q2 and Q3), since you'd be able to apply that limitation regardless of whether you had capital gains. Then, in Q4, you can apply the remainder of the carryover that you would be able to use against your capital gain.

@JST4 

[JST4]

Thank you. 

janet

[KeshaH]

You're quite welcome!