Personal Income Tax Forms And Instructions Resident & Nonresident/part-Year Resident

INSTRUCTIONS FOR FORM IT-210

If you file your return and pay the tax due

Who Must Pay the Underpayment Penalty

PART III - SHORT METHOD

on or before the first day of March, 2006,

You may be charged a penalty if you did not have

You may use the short method to figure your

no penalty is due.

enough West Virginia state income tax withheld

penalty only if:

Mark the appropriate box in PART I and com-

from your income or pay enough estimated tax

You made no estimated tax payments (or

plete PART III or only column (d) of PART IV to

by any of the due dates. This may be true even

your only payments were West Virginia

figure your penalty. Be sure to use the proper

if you are due a refund when you file your return.

income tax withheld); or

percentage when calculating line 6, and carry the

The penalty is computed separately for each due

entire figure shown on line 8 to column (d), line

You paid estimated tax and the payments

date. You may owe a penalty for an earlier due

16.

were made in four equal installments on

date even if you make large enough payments

the due dates.

later to make up the underpayment.

Waiver of Penalty

NOTE: If any of your payments were made ear-

You may owe the penalty if you did not pay at

If you are subject to underpayment penalty, all

lier than the due date, you may use the short

least the smaller of:

or part of the penalty will be waived if the West

method to figure your penalty; however, using

90% of your 2005 tax liability; or

Virginia State Tax Department determines that:

the short method may cause you to pay a higher

100% of your 2004 tax liability (if you filed

penalty (if the payments were only a few days

The penalty was caused by reason of ca-

a 2004 return that covered a full 12

early, the difference is likely to be very small).

sualty or disaster;

months).

You may not use the short method if:

The penalty was caused by unusual cir-

cumstances which makes imposing the

You made any estimated tax payments

Exceptions to the Penalty

penalty unfair or inequitable.

late; or

You will not have to pay any penalty if either of

To request a waiver of the penalty, check the box

You checked BOX C or BOX D in PART I.

these exceptions apply:

in PART I and attach a signed statement explain-

If you can use the short method, complete lines

You had no tax liability for 2004 and you

ing the reasons you believe the penalty should

9 through 12 to figure your total underpayment

meet ALL the following conditions:

be waived. If you have documentation substan-

for the year and lines 13 through 15 to figure the

tiating your statement, attach a copy. The De-

your 2004 tax return was (or

penalty due. If you checked BOX E in PART I

partment will notify you if your request for waiver

would have been had you been

because you are a farmer, the figure to use on

is not approved.

required to file) for a taxable year

line 13 is .02340 instead of .06351.

of twelve months;

In certain instances, the penalty due shown on

PART II - FOR ALL FILERS

you were a citizen or resident of

line 15 may be waived. See Waiver of Penalty

the United States throughout the

Line 1 - Enter the amount from line 8 of Form IT-

for more details.

preceding taxable year;

140 or line 11 of Form IT-140NR/PY.

PART IV - REGULAR METHOD

your tax liability for 2005 is less

Line 2 - Enter the sum of any amounts shown

Use the regular method to figure your penalty if

than $5,000.

on lines 11, 12 and 13 of Form IT-140 or lines

you are not eligible to use the short method.

14, 15 and 16 of Form IT-140NR/PY.

If you are not subject to the penalty be-

Section A - Figure Your Underpayment

cause you meet ALL these requirements,

Line 3 - Subtract line 2 from line 1 and enter the

check BOX B in PART I and attach Form

result.

Line 16 - Enter in columns (a) through (d) the

IT-210 to your return.

amount of your required installment for the due

Line 4 - Enter the amount of withholding tax

date shown in each column heading. For most

The total tax shown on your 2005 return

shown on line 9 of Form IT-140 or line 12 of Form

taxpayers, this is the amount shown on line 8 of

minus the tax you paid through West Vir-

IT-140NR/PY.

PART II divided by four. If BOX D of PART I

ginia withholding is less than $600. To

Line 5 - Subtract line 4 from line 3 and enter the

applies to you, enter the amounts from line 19 of

determine if you meet this exception,

result. IF LINE 5 IS LESS THAN $600, YOU

the Annualized Income Worksheet in the appro-

complete lines 1 through 5. If you meet

ARE NOT SUBJECT TO THE PENALTY AND

priate columns.

this exception, you do not have to file

NEED NOT FILE FORM IT-210.

Form IT-210.

Line 17 - Enter the estimated tax payments you

Line 6 - Multiply line 3 by ninety percent (90%)

made plus any West Virginia income tax with-

If you file your tax return and pay any tax due on

and enter the result.

held from your income. In column (a), enter the

or before January 31, 2006, no fourth quarter

tax payments you made by April 15, 2005, for

Line 7 - Enter your tax after credits from your

penalty is due. Include the tax paid with your

2004 West Virginia return. If you filed Form IT-

the 2005 tax year; in column (b), enter payments

return in column (d) of line 17; this will result in

you made after April 15, and on or before June

140 in 2004, your tax after credits will be line 8

no penalty due for the January 17, 2006

reduced by the sum of lines 11, 12 and 13; if you

15, 2005; in column (c), enter payments you

installment.

made after June 15, and on or before Septem-

filed Form IT-140NR/PY, your tax after credits

will be line 11 reduced by the sum of lines 14, 15

ber 15, 2005; and in column (d), enter payments

Special Rules for Farmers

you made after September 15, and on or before

and 16.

You are considered to be a farmer for the tax-

January 17, 2006.

Line 8 - Compare the amounts shown on lines 6

able year if at least two-thirds of your gross in-

When figuring your payment dates and the

and 7. If line 7 is zero and line 3 is more than

come for 2005 was from farming sources. If you

$5,000, enter the amount shown on line 6. Oth-

amounts to enter on line 17 of each column, ap-

are a farmer, the following special rules apply:

ply the following rules:

erwise, enter the smaller of line 6 or line 7.

You are only required to make one pay-

For West Virginia income tax withheld, you

ment for the taxable year (due January

are considered to have paid one-fourth of

17, 2006); and

these amounts on each payment due date,

The amount of estimated tax required to

unless you check Box C in Part I and show

be paid (line 6) is sixty-six and two-thirds

otherwise.

percent (66-2/3%) instead of ninety per-

cent (90%);

Personal Income Tax Forms And Instructions Resident & Nonresident/part-Year Resident - 2005 Page 14

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