how do i annualize my income for the annualized income installment method 
unlike our scenario above in real life you will not already know your full annual tax payment when your quarterly estimated tax payment is due instead you will have to estimate your annual tax payment by annualizing your income from the beginning of the year until the end of the period in which you are paying taxes because the quarters do not always fall on actual calendar quarters year to date ytd income through may 31 is annualized by multiplying by 2 4 through aug 31 ytd by 1 5 and through dec 31 ytd by 1 3