After completing the Exception 2 worksheet, enter the results in the appropriate columns on Line 17. Compare the amounts in each column to the amounts in the corresponding columns on Line 15. If the amount in any column on Line 15 equals or exceeds the amount in the corresponding column on Line 17, you have met the exception for that period. If you have not met an exception for every period in which you computed an underpayment, proceed to Exception 3.
Line 18 - Exception 3: Tax on Annualized 2006 Income - This exception applies if your 2006 payments on Line 15 equal or exceed 90% of the tax for each installment period computed on annualized income. "Annualized Income" means the actual income received for the fi rst four, fi ve and eight months of the taxable year (three, four and seven months for estates & trusts), multiplied by the factors shown above Line 18 to arrive at the amount that would have been your taxable income if your income had remained constant during the year.
See Instruction in the attached Link: - Instructions for Form 760c
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
