Special rules
For purposes of this paragraph—
(i) Annualization
(i)Annualization#
The taxable income, alternative minimum taxable income, and adjusted self-employment income shall be placed on an annualized basis under regulations prescribed by the Secretary.
(ii)Applicable percentage#
| In the case of the following required installments: | The applicable percentage is: |
|---|---|
| 1st | 22.5 |
| 2nd | 45 |
| 3rd | 67.5 |
| 4th | 90. |
(iii)Adjusted self-employment income#
The term “adjusted self-employment income” means self-employment income (as defined in section 1402(b)); except that section 1402(b) shall be applied by placing wages (within the meaning of section 1402(b)) for months in the taxable year ending before the due date for the installment on an annualized basis consistent with clause (i).