Entering amounts for annualized income installment method screen 8, do you calculate what the annualized amount will be or do you enter income up through the period?

Forum|Forum|6 years ago
December 7, 2019
1 reply
29 views

No text available

Lacerte Tax

This topic has been closed for replies.

Best answer by George4Tacks

This is for form 2210 for the year you are filing (e.g. 2018). It should be calculated for what really was the income for up through prior year periods.

I often cheat just a bit, when I know one income item triggered the increase, such as capital gain. I remove the offending item (capital gain) from the total for the year. I compute 3/12, 5/12 and 8/12 of that remainder and use CTRL + E to enter that amount as "computed". I then use CTRL+E to enter "actual" amounts for income through that period.

George4TacksAnswer

Level 15

This is for form 2210 for the year you are filing (e.g. 2018). It should be calculated for what really was the income for up through prior year periods.

I often cheat just a bit, when I know one income item triggered the increase, such as capital gain. I remove the offending item (capital gain) from the total for the year. I compute 3/12, 5/12 and 8/12 of that remainder and use CTRL + E to enter that amount as "computed". I then use CTRL+E to enter "actual" amounts for income through that period.

Answers are easy. Questions are hard!

L

LSTAXAuthor

Level 5

George, thank you for the explanation that I enter income "up to the period" for each column. I see form 2210 then annualizes for me. I'm intrigued by how you omit the offending item and then enter computed without the item for the three periods. What are you doing with the actual amount? Is it one entry in the 3rd column 1/1/18 - 8/31/18 so that the actual item is weighted heavier later?

Sign up

Login with SSO

Let's get you signed in

Login with SSO