Annualizing your income

[janhatesmath]

I'm being ask to: annualizing your taxes on page one.  What does this mean.  I do not have a Form MI-2210

[AmandaR1 · Accepted solution]

Annualizing your income may allow for a reduced underpayment of taxes penalty, when you earn income unevenly throughout the year. We are required to pay tax as we earn income or there is a penalty.

If you select to annualize your income then you'll enter the amount you earned each quarter. TurboTax will complete the form MI-2210 for you. If you earned more income near the end of the year, then this is worth doing to reduce your penalty.  If not (if you earned evenly throughout the year), then there's no need to select this option.