We had 1099-misc income in the 4th quarter that caused us to owe an "underestimated penalty." Isn't there consideration given to the timing of income? Where would I enter

[dianebest]

in Turbo Tax?

[PatriciaV · Accepted solution]

Yes, you may edit this info under Other Tax Situations >> Additional Tax Payments >> Underpayment Penalties.

Find this quickly by searching on "underpayment penalties" and using the jump-to link to the start of the section.

Complete the interview questions for this topic to allocate your income and expenses to the correct quarter of the year. Look for the page "Annualized Income Method" (see screenshot below - click to enlarge). This may reduce and/or eliminate your underpayment penalty.