Hello,
I had a large sale of ISOs in December of 2024, so I am going through the Annualized Adjusted Gross Income method in TurboTax. I have detailed records of my income across the four periods. Couple of questions:
1) Based on my calculations, my cumulative adjusted gross income for 1/1/2024 to 12/31/2024 is a few dollars different than the AGI being calculated by TurboTax. I figured it may be due to rounding. Is a discrepancy this small an issue?
2) When going through the annualized adjusted gross income method, on the "Net Capital Gains" screen, it says "Enter your net capital gain/loss amounts for all periods through August 31, 2024. It then displays three periods:
- 1/1/2024 to 3/31/2024
- 1/1/2024 to 5/31/2024
- 1/1/2024 to 8/31/2024
Should I be entering cumulative values here? So for example, if short term capital gain for the period 1/1/2024 to 3/31/2024 is $1000, I enter $1000 in that box.
Then from 4/1/2024 to 5/31/2024, I had another capital gain of $500. So in the short term capital gain box for period 1/1/2024 to 5/31/2024, would I put $1500 ($1000 + $500)?
3) Same question as number 2, but for the "Deduction for Qualified Business Income" screen -- cumulative values as well?
4) Lastly, I'm unclear on how to complete the final screen which is "Other Taxes". I have other taxes totaling $4148 ($233 Additional Medicare Tax, $3915 Net Investment Income Tax). Is it acceptable to simply divide the number of months in each period, then multiply by the total other tax?
- 1/1/2024 to 3/31/2024 = $4148 * (3 months / 12) = $1037
- 1/1/2024 to 5/31/2024 = $4148 (5 months / 12) = $1728
- 1/1/2024 to 8/31/2024 = $4148 (8 months / 12) = $2765
- 1/1/2024 to 12/31/2024 = TurboTax already displays $4,148 in this box
