Annualized Income Method Form 2210. Uneven Estimated payments.

[faaradar]

I make uneven (per quarter) estimated tax payments due to Roth conversions and want to avoid penalties. I use Desktop Premier edition. I dont see how to generate this form? This year I made est payment in 4th quarter but did not get a penalty and no form 2210 shown on my return? I did pay over 110% of last years tax, does that mean their is no penalty for underpayment in a quarter? Just trying to plan for next year to ensure I dont get a penalty and know how to do the form if needed. I will be doing these Roth conversions alot the next few years in the 4th quarter and wont be able to predict their amounts. Thanks for any help.

[MaryK4]

Yes, if you made the quarterly payments and entered the annualized income, you will not have to pay the penalty.

You may avoid the Underpayment of Estimated Tax by Individuals Penalty if:

• Your filed tax return shows you owe less than $1,000 or
• You paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less. If your adjusted gross income (AGI) for 2023 was more than $150,000 ($75,000 if your filing status for 2024 is married filing separately), substitute 110% for 100%.

Note that the 100%/110% still has to be quarterly if you are making the estimated payments.  Otherwise, as in your case, you have to enter when you received the income to avoid the penalty.