I am also annualizing because of an underpayment. The problem I'm having is that the amount of wages & income on the Wages & Income screen is not the same amount when I get to the "Annualized Adjusted Gross Income" screen where I'm supposed to put in my income by the quarter. It already has the 4th quarter populated but it's not the same as what's on my Wages& Income screen. Is there a reason it would be different. I have some Dividend income and some is Qualified and I have some Capital Gains. Is any of this income not included on the "Annualized Adjusted Gross Income" screen?
See this response from MaryK4 on the calculations for the Annulized Adjusted Gross Income. "To get the correct adjustment for quarters 1 to 3, you first want to subtract out the capital gain amount that was included in quarter 4- because the capital gain is included in the AGI. After you do that, you can use a quarter of the AGI less Cap Gain. For the Itemized Deductions your calculation will work since in general they should have been spread out evenly through the year.
The annualized income installment method annualizes your tax at the end of each period based on a reasonable estimate of your income, deductions, and other items relating to events that occurred from the beginning of the tax year through the end of the period. "
See the link below for more information: