Deductions & credits

If you count $4000 in the first quarter it is going to get "annualized" to $16,000 which already exceeds the cap.

 

I did the numbers both ways over the weekend. By the second period the annualization factor of 2.4 was making my "deductions" more than double the year-end allowable amount . Fortunately, annualizing my income got rid of most of the penalty.