Generating Form 2220 Annualized Income Installment Method in ProConnect Tax

Using the Annualized Income Installment Method on Form 2220

When using the Annualized Income Installment Method on Form 2220 to help minimize the estimated underpayment penalty, the taxable income per installment period must be entered in order for the calculation to function correctly.

In the Corporate/S-Corporate module:

1. Go into Input Return ⮕ Payments, Penalties & Extensions ⮕ Penalties and Interest (2210)
2. Select the Annualized Income tab.
3. Mark the desired optional annualized method in the field Optional annualized method: 1 = option 1, 2 = option 2, (blank = standard). An entry in this field tells the program what months are chosen as annualization periods.
4. Enter figures in the Taxable Income (-1 = None) subsection. Entries in these fields allow the program to calculate the estimated penalty, if any, for each annualization period.