TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

Question

Can I annualize my income to explain underpayment of taxes?

Forum|Forum|11 months ago
May 5, 2025
1 reply
0 views

No text available

TurboTax Deluxe Online

Yes, you can use the annualization method to have your tax liability calculated on your actual income for specific periods.

In TurboTax Online, please follow the instructions below:

Open your return.
Click on Federal on the left hand side.
Click on Other Tax Situations.
Click on Additional Tax Payments.
Click Start next to Underpayment Penalties.
Answer the information on the following screens.
On the screen, Annualized Income Method, click Yes.
Enter the relevant information on the following screens.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"