Estates and trusts electing to use the annualized income installment method have the same estimated tax payment due dates as individuals. However, the installment is computed by placing on an annualized basis the income for months in the taxable year ending the second month preceding the month that contains the due date for the installment. [that is, for last installment, Nov. 30]
Because income received in December is not included in annualized income of an estate or trust, the required annual payment of an estate or trust can be less than both 90% of current year tax and 100% of prior year tax. This will be the case when the taxpayer chooses to annualize, and taxable income received through November 30th is less than 11/12 of total taxable income for the year.
