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

the space at the bottom of page 24 or a sepa-

Each payment must be applied to the oldest out-

Include in your estimated tax payments

rate sheet of paper to show any additional com-

standing underpayment. It does not matter if

any overpayment from your 2004 West

putations.

you designate a payment for a later period. For

Virginia tax return that you elected to

example, if you have an underpayment for the

apply to your 2005 estimated tax. If you

If There Are No Payments - The “underpayment”

April 15 installment period, the payment you

filed your return by the due date (includ-

is the entire amount shown on line 23.

make June 15 will first be applied to pay off the

ing extensions), treat the overpayment

April 15 underpayment; any remaining portion

as a payment made on April 15, 2005.

of the payment will be applied to the June 15

The Following Conditions Determine If Addi-

installment.

If you file your return and pay the tax

tional Computations Are Needed For Column

due on or before January 31, 2006, in-

Also, apply the following rules:

(a):

clude the tax you pay with your return in

Show the West Virginia withholding tax

column (d) of line 17. In this case, you

The first payment was enough to re-

attributable to each installment due

will not owe a penalty for the payment

duce the underpayment to zero. There

date; do not list the withholding attrib-

due January 2006.

are no further computations for column

utable on or after January 1, 2006.

Line 18 - Enter any overpayment from the previ-

(a). Figure the penalty for any under-

Any balance due paid on or before

ous column on line 18.

payments shown in columns (b)

April 17, 2006 with your personal in-

through (d) on line 23.

Line 19 - Add lines 17 and 18 in each column

come tax return is considered a pay-

and enter the result on line 19.

ment and should be listed on line 17,

No payments. Figure the penalty for

column (d). For the payment date, use

Line 20 - Add lines 22 and 23 from the previous

any underpayments shown in columns

the date you file your return, or April

column and enter the result in each column.

(b) through (d) on line 23.

17, 2006, whichever is earlier.

Line 21 - Subtract line 20 from line 19 in each

The payment did not reduce the un-

column and enter the result on line 21. If line 20

Chart of Total Days Per Rate Period

is equal to or more than line 19 in any column,

derpayment to zero, and there are no

Rate Period

Line 25

other payments.

enter zero on line 21 in that column.

(a)

367

Line 22 - Subtract line 19 from line 20 for any

(b)

306

column for which line 20 is more than line 19;

Make one other computation for lines 25 and 27.

(c)

214

otherwise, enter zero.

The second computation is to figure the penalty

(d)

Line 23 - Subtract line 21 from line 16 for any

on the unpaid balance (the portion of the under-

column for which line 16 is more than line 21;

payment that remained unpaid for the entire pe-

For example, if you have an underpayment on

otherwise, enter zero. If line 23 is zero for all

riod).

line 23, column (a), you would enter 367 in col-

payment periods, you do not owe a penalty.

umn (a) of line 25.

However, if you checked any box in PART I, you

On line 25, enter 367. This is the total number

must file Form IT-210 with your return.

The following line-by-line instructions apply only

of days in the rate period. See the Chart of Total

to column (a) of Section B. If there is an under-

Days Per Rate Period.

Line 24 - Subtract line 16 from line 21 for any

payment shown in any other column on line 23,

column for which line 21 is more than line 16;

complete lines 25 and 27 in a similar fashion.

On line 27, make the computation and enter the

otherwise, enter zero. Be sure to enter the

result.

amount from line 24 on line 18 of the next col-

Line 25 - Enter in column (a) the total number of

umn.

days from 4/15/05 to the date of the first pay-

Additional payments were made and

ment. If no payments enter 367.

Section B - Figure the Penalty

the first payment did not reduce the

Line 26 - The daily penalty rate is equal to the

Caution: Read the following instructions before

underpayment to zero. On line 23, list

annual interest rate applied to tax underpayments

completing Section B.

the amounts and payment dates that

divided by 365. The annual interest rate for

apply to the underpayment for the in-

Figure the penalty by applying the appropriate

underpayments is nine and one-half percent

stallment period. Figure the penalty

rate against each underpayment on line 23. The

(9.5%) through June 30, 2006, resulting in a

for each amount on line 23. If an un-

penalty is figured for the number of days that the

daily rate of .000260.

derpayment balance remains after ap-

underpayment remains unpaid.

Line 27 - Make the computation requested and

plying all the payments, figure the pen-

The rates are established twice during each cal-

enter the result. Note that the computation calls

alty on the remaining balance for the

endar year, on January 1 and July 1. If an un-

for the “underpayment on line 23”. The amount

entire rate period.

derpayment remains unpaid for more than one

to use as the “underpayment” depends on

rate period, the penalty for that underpayment

whether or not a payment is listed.

Columns (b) through (d)

may be figured using more than one rate. The

If There Is A Payment - The “underpayment”

annual rate is nine and one-half percent (9.5%)

To complete columns (b) through (d), use the same

for the computation on line 27 is the amount of

from January 1, 2005 through June 30, 2006 and

procedures as for column (a). However, apply only

the payment applied to the line 23 underpayment.

will require only one rate for all underpayments.

those payments in each column which have not

If the payment is more than the underpayment,

Use line 25 to figure the number of days the un-

been used in a previous column.

apply only an amount equal to the underpayment

derpayment remains unpaid. Use line 27 to com-

and use that amount for the line 27 computa-

pute the actual penalty amount by applying the

Line 28 - Add all figures from line 27. Enter the

tion. If the payment is less than your underpay-

proper rate to the underpayment for the number

sum on line 28 and on the appropriate PENALTY

ment, the penalty for the remaining underpay-

of days it was unpaid.

DUE line of your personal income tax return.

ment will require a separate computation. Use

Personal Income Tax Forms And Instructions Resident & Nonresident/part-Year Resident - 2005 Page 15

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