is there software to compute the annualized Income tax method for federal income tax?

Answer 1

Yes. Any decent accounting software will handle that. You can also contact any company that sells tax software, any of them should offer software to do what you need.

Answer 2

It depends on if you selfemployed our receive a w-2. If your are self-employed you have a tax of 15.3% plus the percent of total income after deductions. For low income starting at 0 going to 7,825 would be like 10%. the more you make the bigger the percent Your best bet is to go to the irs website and search (IRS withholding calculater). Or search 2007 Federal tax rates