Skip to main content
Employee
December 18, 2024
Question

How do I use the annualized income method to show when my income occurs. I need to to avoid a penalty for a Roth conversion late in the year.

  • December 18, 2024
  • 3 replies
  • 0 views
No text available

    3 replies

    Employee
    December 18, 2024

    When you prepare your return, go the tab for special situations and choose the penalty form, then select "annualized income method."  

    VolvoGirl
    Employee
    December 18, 2024

    It is form 2210.   Here is the form and instructions.

    IRS form 2210

    https://www.irs.gov/pub/irs-pdf/f2210.pdf

     

    2210 Instructions

    https://www.irs.gov/pub/irs-pdf/i2210.pdf

     

    If you have a penalty on 1040 line 38,  you might be able to eliminate it or at least reduce it.  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

    SteamTrain
    Employee
    December 18, 2024

    And.....Make sure you have fully filled in your entire tax return, all income, deductions, credits, (1099-Rs and Roth conversions), and make sure it is otherwise complete before going thru the Annualized income Q&A section.  

    ____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*