How to input Maryland annualized income?

Forum|Forum|6 years ago
February 16, 2020
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TurboTax Online

JotikaT2

I am assuming you are trying to enter your annualized income for 2020 so you can prepare any estimated tax payments.

You will go through the state interview screens for Maryland.

When you see the following screen, select Other situations.

MD taxes

On the next screen, select Estimated and Local Income Tax.

Estimated taxes

You will be prompted to answer several questions that are used to determine if you will owe any taxes in 2020 based upon your input.

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longxin2006Author

Hi JotikaT2,

Thank you very much for your help.

My question is about how to input the annualized income to avoid the underpayment penalty for 2019 Maryland tax return, not the estimated tax for 2020.

Since my income is not evenly across of the year, I need to type in the income for the periods of 03/31, 05/31, and 08/31. As I remember, last year there was a link of ‘Underpayment Penalty’ in the section of ‘Other Situations’ for Maryland return. With the link I typed in quarterly income amount, and the annualized income calculation allowed me to avoid the underpayment penalty for my 2018 Maryland return. But so far the link of ‘Underpayment Penalty’ is not there for 2019 Maryland tax return.

Would you please continuously help me to resolve the problem? Is the form available now? Where I can find the link for the input?

Your help is greatly appreciated.

Thanks,

AmyC

Employee

Go back into your MD return, keep hitting continue/yes/no until you get to the MD credits screen.

Click Done with Credits
Screen says A few things before we wrap up your state taxes
Locate Other Situations
Click start next to Estimated Tax Penalty
screen for Fishermen and Farmers
Click No
Do you want to use the annual income installment method?
Click yes

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joensharon

This method for annualizing income in the Maryland state return doesn’t seem to work in the online version of TurboTax 2021. Can someone tell me how to do this? I want to show more income towards the latter part of the year in the MD return to remove the underpayment interest that TurboTax has calculated.

krelged

Employee

BTW - there are no prompts in TT for 2022 taxes to annualize Maryland income for the year. You have to open Form 502UP and do it manually. Open the form and go down to the table of values shown for each quarter and there is a box to check to allow you to annualize. When you check the box, the income values for the first three periods go blank and you can manually enter the correct values.

joegeodesist

agreed, using form view + 'annualize' you can edit SOME of the MD 502UP values.

~~But not line 14. Why not?!~~

UPDATE: The form view allows editing of line 14, but not ON line 14; you can find the same values farther up the worksheet, and edit them there. Thanks @AmyC

AmyC

Employee

Line 14, you can just type right in it. All the boxes with a plus sign when you click in it means that you can just type into it. If you are not able, you need to close the program and update.

@joegeodesist