In order to make Schedule AI available, Part II of Form 2210 must be entered. Please follow the instructions below to review which situations apply to you, and to determine if Schedule AI needs to be attached.
To enter this in TaxAct®:
- From within your TaxAct return (Online or Desktop) click on the Federal tab. On smaller devices, click in the upper left-hand corner, then select Federal.
- Click Underpayment Penalty
- Click Yes on the screen titled Federal Q&A - Underpayment Penalty
- On the screen titled Underpayment Penalty – Farmers and Fishermen (if this screen pertains to your situation, you would check the box first before continuing)
- On the screen titled Underpayment Penalty – Prior Year Tax verify the information and click Continue
- On the screen titled Underpayment Penalty - Reasons for filing you must select the third box (Annualized Income Installment Method), and click Continue
- On the screen titled Underpayment Penalty - Cumulative Income enter your income (excluding capital gains and losses and qualified dividends) specific to the dates listed. Your yearly income has already been pulled into the worksheet based on information you have already input into TaxAct
- On the screen titled Underpayment Penalty – Short-Term Capital Gains enter capital gain and loss information on property held less than 12 months that you sold during the year
- On the next screen you will enter your Long-Term Capital Gain information (assets you held more than a year), then click Continue
- Continue to enter the appropriate information on the following screens
- Your Schedule AI- Annualized Income Installment Method Form should now be available for you