how do you calculate quarterly adjusted gross income for the annualized income method?

[rjrandocih]

i.e. how is the quarterly gross income adjusted?

[KeshaH]

To annualize your income to reduce your underpayment penalty, choose Yes on the Annualized Income Method screen. Then click Continue.

Next, based on your records such as paystubs or business financial statements, enter your income based on when it was earned during the year. Note that each box is cumulative. For example, the second box would include the amount from both Q1 and Q2.