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The AI Method is the ultimate "Safe Harbor" because in addition to allowing you to use the prior's year's tax Safe Harbor it automatically adjusts and computes a revised installment due for a changing "Safe Harbor" of 1/4 of 90% of current year's tax. Since the installment it computes is based on ACTUAL tax computed on actual income it eliminates any penalty for underestimating any quarter.



I am a little confused on one point. I thought that once you selected either: Method (1) 100% of last years taxes; or Method (2) 90% of current year's taxes -- you are stuck with FIXED quarterly payments using whatever method you initially selected. In other words, I did not think you could adjust/ manipulate your SE payments? I thought I read somewhere that if your quarterly payments arenot uniform (i.e same amount, then the IRS will automatically hit you with a penalty. Is this correct?

Also, do I use the edcosoft after I do finish my 2006 taxes on Turbo Tax?

thanks
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