IN my WV state taxes under "underpayment penalty exceptions" can I check "you use the annualized income installment method" if my wife has a home business and we pay

[bobdpt]

If we pay WV state quarterly taxes

[AmandaR1]

Yes, you should be able to check the box to use the annualized income method if gives you a lessor penalty.  Typically, this method can reduce penalties when someone doesn't earn income evenly throughout the year, like people normally do with a job. If your wife earned more of her income in the second half of 2016, this method should reduce the penalty.