Follow these steps to view how the underpayment of estimated tax is calculated:
- Go to the Check Return tab.
- Select Forms from the left menu.
- Select 2210 from the list (if it's not showing, select All then enter 2210 in the search field).
- Scroll to the final page of the form to view the Underpayment Penalty Worksheet.
This worksheet shows how the penalty is calculated based on your input in ProConnect Tax, including withholding on income and estimated payments entered in Payments, Penalties & Extensions > 20XX Estimated Payments.
Generating Form 2210, Annualized Income Installment Method
- Go to the Input Return tab.
- From the left of the screen, select Payments, Penalties & Extensions and choose Penalties and Interest (2210).
- Enter the Filing date.
- From the left of the screen, select Annualized Income Installment Method.
- Enter the adjusted gross income for each period in the AGI field.
- Enter -1 to indicate zero.
- The 4th quarter's amounts will be automatically calculated from the return.
All items marked [Override] on this screen will be completed automatically using amounts from the tax return, if no entry is made.
There's no worksheet or form to calculate Alternative Minimum Tax (AMT) with the annualized method. If your client is subject to AMT you will have to manually calculate it outside of the program.
