Estimated Taxes: Annualization Method

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If you do not receive income evenly throughout the year, you may be able to lower or eliminate your required estimated tax payment for one or more periods by calculating your estimated tax payment using the annualized income installment method, rather than the regular installment method. Annualization may reduce the amount you owe and eliminate penalties. To see if you can pay less for any period, you should complete the blank Annualized Estimated Tax Schedule in Form 2210.


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