I unexpectedly received a large amount of income in 12/2021. I am now charged with an underpayment tax penalty. I was told I should “annualize income” to hopefully reduce or eliminate the penalty, but I can’t find that feature in TurboTax Deluxe.
Probably just Online Deluxe or higher. I wouldn't think the Free Edition covers that. But any of the Desktop programs have it.
If Turbo Tax doesn't automatically fill it out you can add it yourself. You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you. It's form 2210.
It's under
Federal or Personal (for Home & Business Desktop)
Other Tax Situations
Additional Tax Payments
Underpayment Penalties - Click the Start or update button
And even if you or Turbo Tax adds it on line 38 it is only an estimate. It's common and expected for the IRS to bill you for more depending on when they actually get your payment. Or even send you a refund for some.
Probably just Online Deluxe or higher. I wouldn't think the Free Edition covers that. But any of the Desktop programs have it.
If Turbo Tax doesn't automatically fill it out you can add it yourself. You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you. It's form 2210.
It's under
Federal or Personal (for Home & Business Desktop)
Other Tax Situations
Additional Tax Payments
Underpayment Penalties - Click the Start or update button
And even if you or Turbo Tax adds it on line 38 it is only an estimate. It's common and expected for the IRS to bill you for more depending on when they actually get your payment. Or even send you a refund for some.