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Solved!

I was right to question the odd behavior of the Annualized Income method and the nonsensical entries I was seeing. While reviewing I found that I had mistakenly entered the year 2025 for my Q4 estimated payment instead of 2024. Still have to use the AI method, but all penalties are now gone.

 

I agree with other posts that the annualized forms are complex and poorly explained, but TT was not at fault here. Sorry if this led anyone astray.