rschule1
Expert Alumni

Self employed

Hi There:

 

Theoretically there should be no penalty if you are making timely estimated tax payments, (which is calculating your tax liability and and making a timely and appropriate payment).  If you are already doing this, then it might be a situation of  employing the annualized installment method to avoid estimated tax penalties.  In the below link see annualized installment method.

 

Annualized Method

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"