Instructions - Ia 2210 printable pdf download

INSTRUCTIONS — IA 2210

A. Purpose of This Form:

Line 12 - Tax on Annualized 2006 Income: If your

income varies throughout the tax year, you may be able to

If you are an individual taxpayer, other than a qualifying

reduce or eliminate the amount of one or more of the

farmer or fisher, you may use this form to determine

required installments by using the annualized income

whether your income tax was sufficiently paid throughout

installment method. If you use this method, you must check

the year by withholding or by estimate payments. If they

the box on line 73 of the IA 1040. Please see Schedule A1

were not, you may owe a penalty. The estimated tax penalty

and instructions.

is 8% per year for the tax period January 1, 2006, through

December 31, 2006, and 10% per year for the tax period

Line 13 - If you used the annualized income installment

January 1, 2007, through December 31, 2007. The changes

method to figure your required payments, enter the amount

in the estimated tax penalty apply to amounts arising during

from line12. Otherwise, enter the amount from line 11.

these periods. This form will help you determine whether

Line 14 - Installment payments: Enter your payments or

you are subject to such a penalty.

portion of payments needed to satisfy the amount of the

required installment. Your estimate payments and

B. Filing an Estimate and Paying the Tax,

withholding are applied to the earliest unpaid installment.

Calendar Year Taxpayers:

It does not matter that the payment is designated for a later

If you file returns on a calendar year basis and are required

period. Any overpayment is carried to the next unpaid

to file form IA 1040ES, you are generally required to pay

installment. If additional computations are required beyond

the tax in four installments with the first installment due by

the three allotted lines on this form, attach a separate sheet

April 30. (If you are not required to file until later in the

for each computation.

year because of a change in your income or exemptions,

You may consider an equal part of the income tax withheld

you may be required to pay in fewer installments.) The

during the year as paid on each required installment date,

chart below shows the due date for installments and the

unless you can establish the dates on which the withholding

maximum number of installments required for each.

occurred and consider the tax paid on those dates.

Maximum

Period

Due Date

Number of

Line 15 - Enter the date the payment was made or, if

Requirements

Installments

withholding, the due date of the installment. If more than

First Met

Installment

Required

one payment is applied to pay the installment, enter a date

Between January 1 and April 1

April 30

for each payment.

Between April 2 and June 1

June 30

Between June 2 and September 1 September 30

Line 16 - To Compute Penalty: Use the following

After September 1

January 31

formula:

NOTE: If any date shown falls on a Saturday, Sunday or

legal holiday, substitute the next regular working day.

Penalty = daily percentage rate x number of days x payment applied

(line 17)

(line 16)

(line 14)

LINE-BY-LINE INSTRUCTIONS

The daily percentage rate is:

Line 8 - If line 8 is $200 or more, complete lines 9 through

8% per annum = 0.021918% per day (1/1/06 - 12/31/06)

10% per annum = 0.027397% per day (1/1/07 - 12/31/07)

15. If you have an underpayment in any column on line 15,

go to the “How to Figure the Penalty” section.

Waiver of Penalty: The underpayment of estimate tax

If the total from line 8 is less than $200, then you are not

penalty may be waived if the underpayment was due to

required to pay estimated tax and therefore cannot have

casualty, disaster, or other unusual circumstances. The

underpaid estimated tax. If the total from line 8 is less than

penalty may also be waived if the taxpayer retired at age 62

$200 do not file form IA 2210.

or later or became disabled in the tax year for which the

Line 9 - Taxpayers may avoid underpayment penalty if

estimate payments were required.

their estimate payments for 2006, made on or before the

Farmers and Fishers: If (1) your gross income from

prescribed dates for payment, are equal to the lesser of: (1)

farming or fishing is at least two-thirds of your annual

90 percent of the tax shown on the 2006 return; or (2)

gross income and (2) you filed IA 1040 and paid the tax on

100% of the tax shown on the 2005 return if their 2005

or before March 1, 2007, you may be exempt from

Federal AGI is $150,000 ($75,000 for married filing

penalties for underpayment of estimated tax. If so, write on

separate Federal returns) or less; or (3) 110% of the tax

line 1, “Exempt, farmer/fisher,” and do not complete the

shown on the 2005 return if their 2005 Federal AGI is

rest of this form.

greater than $150,000 ($75,000 for married filing separate

If you meet this gross income test but did not file a return

Federal returns) plus any bonus depreciation adjustment.

or pay the tax when due, use form IA 2210F, instead of this

Their 2005 return must have covered a period of 12

form, to determine whether you owe a penalty.

months.

45-007b (10/10/06)

Instructions - Ia 2210

Related Articles

Related forms

Related Categories