Thank you but the problem is avoiding a penalty. I have annualized due to uneven income ( feast or famine ) and my 1st Quarter 2020 income, when multiplied by 4 results in an income figure that is 3 times what my annual income actually will be. If I pay estimated taxes on that inflated amount I will far exceed what I owe at the end of the year. Due to decreased income in 2020 if I use 110% of the 2019 prior year’s taxes paid for my estimates I will have paid my taxes by the third quarter. In 2019 I had paid enough with 1st Quarter withholding that I should not have owed taxes based on the tax tables for actual income earned in that quarter but due to uneven income I owed a penalty when the 1st Quarter earnings were quadrupled. I annualized to reduce the penalty. The only way I can see to avoid a penalty is to pay all 4 quarters based on 110% of my prior year taxes even though my tax liability would be satisfied with the 3rd payment.
