Annualized Adjusted Gross Income

[mesquitebean]

@rwhitaker20 

ADDENDUM:

See the tips I provided in my answer to you above.

Another thing you could do, if desired, and if you qualify to open an IRS account, is to download a free 2019 tax return transcript from the IRS website to see what they are showing for your 2019 AGI.

https://www.irs.gov/individuals/get-transcript

Whatever you do, don't give up without trying a 2019 AGI of 0 (zero.)  Sometimes it will work for no apparent reason, sort of like a "Hail Mary" football pass.

[Chefkaren1107]

I had submitted my forms before I received my other one. I also missed the box to claim myself. Is there anyway I can correct this .? I really need to fix it ASAP.

 Thanks,

Karen [PII removed]

[Chefkaren1107]

I need to add the income the sum of 1775.50 and check the box claiming myself as y dependent. Can you help me with this?

[HeatherPLO]

@Chefkaren1107

For security purposes, please do not post your name in a public forum.  If you are needing to correct a form after you filed it, please see this Help Article for instructions on how to do this. Please note, the 2021 Amendment 1040-X form may not be available yet.  It will show up on the Help Article with a link once it is ready to use.  

[Lamirands]

I totally agree. I am having the same issue. 

[mps5041]

I am hoping someone responds to this.  I am unable to obtain qualified vs ordinary income from vanguard for each month or even quarter.   Form 2210 wants the qualified dividends broken down in periods and I only have all dividends (not specified as ordinary or qualified) to do this.  Can I just use this value?  It is actually more than the qualified dividend sum.

Thanks

[AmyC]

Yes, over reporting income for earlier periods is fine, just not under-reporting. If you are audited you can show that you used reason and compensated by using the full amount.

@mps5041 

[T2IV]

I guess that I'm not alone in my frustration with this part of TurboTax. As others have mentioned, in the past I've just eaten the approximately $500 penalty, not wanting to take the time to calculate it all out (although, again like others, I put together a spreadsheet to simplify the process). But after at least 4+ years, that works out to a couple of thousand dollars -- which I should be keeping in my pocket (and for the $500 I could just pay someone else to do my taxes -- so TurboTax becomes a less attractive option). 

I'm confused by a few items:

- the instructions indicate "Self Employment Earnings" (which is true, for me -- but my spouse has W2 income, and her income appears to be included in the total AGI number for the 4th period -- her income is very steady, while mine is erratic which leads to the underpayment/penalty). So do I include her income in the 3 periods requested? Gross? Net of Deductions? (and if we're taking the Standard Deduction, do I just spread that across the periods, vs using actual deductions calculated for each period?) I'm just a little (OK, a lot) unclear.

- Likewise, I also qualify for the Qualified Business Income (QBI) deduction, and that is also requested for the 3 periods. As it should, it only appears to apply to my income (self-employment income) but I have no idea as to how to calculate the numbers in my spreadsheet - is the 20% reduction off of Gross or Net? Is 20% even the right number? To complicate matters, I also have rental income -- does that also take advantage of the QBI deduction? Again, how is all of this calculated?

I realize that TurboTax doesn't know when the income was generated (which month/period) so I'm completely understanding of having to calculate that "on the side" but some guidance from them would be helpful with regard to what should be included/excluded from each period's calculations. 

[fanfare]

If you use a tax preparer, they're not going to fill out that form AI  for their "standard fee".

I'd be surprised if they would even agree to do it.

The expected solution is to increase your Estimated Tax payments in future so that the penalty is eliminated.

Form 2210 instructions shows the amount you would need.

[T2IV]

Thanks for the response - much appreciated.

The issue (at least for me) is that my income stream is erratic, so payment of the estimated tax amounts is often not in alignment with the income on hand. Which is why of course I would like to annualize my income. So just increasing my estimated payments, even if I could  (and giving the Government an interest free loan) doesn’t seem like a great option. And if TurboTax can’t do it, and a preparer likely won’t agree to do it, then where does that leave the average taxpayer? Not your issue, of course — I’m just venting. Thanks again. 

[fanfare]

if  your withholding (possibly zero) plus estimated tax adds up to the tax you paid last year (110% for high earners) then you will not have any penalties.

This is a number you know (that is, you will know, by April 15, which is the first ES date).

But, you must pay at least 25% of this on or before each ES due date.

The IRS Form 2210 doesn't care that your income is erratic; take the money from savings.

you won't have to use Schedule AI.

How does that sound to you?

[T2IV]

Thanks for the suggestion. That sounds like a reasonable workaround.

I spreadsheeted the 2210 forms last night and got a better feel for the numbers that TurboTax is requesting. But it's still a very time-consuming exercise in any event.

Thanks again!

[pfg23]

The Annualized Adjusted Gross Income form in TurboTax asks for cumulative AGI at specific dates. The lines in the 1040 form are for the entire year.  I can't see how this is helpful at all.

[AmyC]

The annualized adjusted gross income form is only used to help reduce penalties when a large amount of income was earned later in the year. It is not related to the tax return, only the penalty.

See About Form 2210-F, Underpayment of Estimated Tax

@pfg23 

[gb1]

Hi, Can you help me understand this?

I have all the numbers to calculate income for each quarter.

There are two pages.

First one is "Annualized Adjusted Gross Income"  Should the amounts here include both W2 earnings and capital gains/loss?

Next screen is "Net Capital Gains".

Is the first screen only for W2 income then?

Thanks