Question

When annualizing my adjusted gross income, should the periods be cumulative? The second period shows 1/1/2024 - 5/31/2024, I was expecting 3/1/2024 - 5/31/2024.

Forum|Forum|1 year ago
March 9, 2025
1 reply
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Another question on salary, is this counted in the time the work was performed? Or when the payment (salary) was paid? For example, in the first period would it be my paychecks from January 15 (work performed in December) or would I start counting from the January 30 paycheck (work performed in January)?

M

MindyB

Yes, the amounts entered when annualizing are cumulative. So instead of entering only the amount from 4/1–5/31, you will add that to what you already computed from 1/1–3/31. The second entry in annualization should be the full amount from 1/1–5/31.

Since you are a cash method taxpayer, the income would be counted when you are paid. In your example, the January 15th paycheck, although earned in December, is counted in January.