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New Member
posted Jan 10, 2022 11:23:22 AM

How do you report Captial Gains by quarter to match estimated tax payments?

90% of Capital Gains is earned in 4th Quarter therefor only estimate tax payment is in 4th quarter

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2 Replies
Level 15
Jan 10, 2022 11:38:26 AM

you'll have to use the annualized income method for form 2210

 

basically, you need your income for the 1st 3, then 5 then 8 months and finally for the whole year.

deductions are figured the same way. Turbotax will take you through the various info you must supply for it to use the AI method

 

 

Level 15
Jan 10, 2022 11:55:43 AM

If I recall correctly (I may not) under the Other Tax Situations tab in the Additional Tax Payments section, elect to start/update Underpayment Penalties. If the program ALREADY KNOWS you have an underpayment penalty based on the information you have already entered in the program, that will walk you through the annualization method to reduce or eliminate any underpayment penalty assessed by the program thus far.