Annualized Adjusted Gross Income

[RobertB4444]

The annualized adjusted gross income is everything, your total income for the year.  Then your annualized capital gains tell the system which portion of the first part is taxed at a different rate.

@gb1 

[jmurray3]

I, too, have issue with TT not automatically determining that I SHOULD annualize my income instead of telling me I owe a penalty and making me figure it all out on my own.  I purchased Premier because I sold stocks and received capital gains.  I sold an amount in August that would have caused me to pay the penalty but annualizing prevented me from paying it.  The information was imported from the financial institution that included the dates of the sales so it should know, or at least suggest, I should annualize.  Very disappointing.

[fanfare]

there are two penalty reduction options.

Form 2210 Option D (withholding each quarter)

Form 2210 AI (all income and deductions cumulative quarters)

both require you to enter amounts applicable to the specified Estimated Tax periods from your own records.

@jmurray3 

[jmurray3]

Understood.....now.  The software asked me what my estimated payments were right?  It also knows from my imports from financial company where I sold shares and when correct?  The software should know based on those factors that annualizing is in my best interest and prevent penalty right?

[MonikaK1]

Though your estimated tax payments and other information is entered in other parts of TurboTax, the Underpayment Penalty questionnaire in Other Tax Situations allows you to answer additional questions that could change the calculation of the penalty. It also allows you to indicate whether you believe you qualify to have the penalty waived.