Annualized Income Installment Method

Annualized Income Installment Method
A method through which a taxpayer may reduce or eliminate any estimated tax underpayment penalty owed. The annualized income installment method calculates the installment payment that would be due if the income minus deductions earned before the due date were annualized. This exception to the underpayment penalty gives some relief to taxpayers who receive unexpected or uneven income during the year and so cannot accurately estimate their tax liability.

The annualized method can be calculated using Internal Revenue Service (IRS) Form 2210, with additional worksheets in IRS Publication 505. The actual calculations are quite complex, so consulting a tax professional may be a good idea for many taxpayers.


Investment dictionary. . 2012.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”