Instructions For Form It 2210-1040 - 2006 Page 3
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5IT 2210-1040
Rev. 11/07
Example #1
Facts
1. “MFJ” estimated taxes paid for the current taxable year are as follows:
April 15: $4,000
June 15: $4,000
Sept. 15: $4,000
Jan. 15: $4,000
2. W’s tax (MFS) for the current taxable year after credits: $10,000.
H’s tax (MFS) for the current taxable year after credits: $ 6,600.
Each taxpayer recognized the income equally over the year (so, the “annualization method” is not applicable).
3. W files timely but prior to H who also files timely. W claims estimated tax payment of $10,000; so W owes no tax. H claims
estimated tax payments of $6,000; so H owes (and timely pays) $600 tax.
Analysis
According to the information release, for purposes of determining tax due and refunds the Ohio Department of Taxation will
allocate the payments as follows:
Date Paid
Amount Allocated to W
Amount Allocated to H
April 15
$ 4,000
$
0
June 15
$ 4,000
$
0
Sept. 15
$ 2,000
$ 2,000
Jan. 15
$
0
$ 4,000
Total
$10,000
$ 6,000
Note that the Ohio Department of Taxation allocates to the “first to file MFS” taxpayer all “MFJ” estimated tax payments. If, after such
allocation, the MFJ estimated tax payments exceed the tax due by the “first to file MFS” taxpayer, the department will then allocate to
the “second to file MFS” taxpayer the excess “MFJ” estimated tax payments.
However, for purposes of determining interest penalty due, W and H may allocate in any manner the “MFJ” estimated tax pay-
ments. As such, to avoid interest penalty, W and H may allocate the “MFJ” payments as follows:
Date Paid
Amount Allocated to W
Amount Allocated to H
April 15
$ 2,500
$ 1,500
June 15
$ 2,500
$ 1,500
Sept. 15
$ 2,500
$ 1,500
Jan. 15
$ 2,500
$ 1,500
Total
$10,000
$ 6,000
By allocating the “MFJ” estimated tax payments in the manner shown above, neither W nor H will owe any interest penalty since
each taxpayer will be deemed to have timely paid sufficient estimated tax (at least 90% of the current taxable year’s tax).
Example #2
Facts
1. “MFJ” estimated taxes paid for the current taxable year are as follows:
April 15: $4,000
June 15: $4,000
Sept. 15: $4,000
Jan. 15: $4,000
2. For the previous taxable year W’s “MFS” tax liability was $1,000, and H’s “MFS” tax liability was $15,000.
3. W’s tax (“MFS”) for the current taxable year after credits: $17,000
H’s tax (“MFS”) for the current taxable year after credits: $ 3,000
Each taxpayer recognized the income equally over the current taxable year (so, the “annualization method” is not applicable).
4. W’s “MFS” tax return claims the entire $16,000 of “MFJ” estimated tax payments. W timely pays $1,000 shown to be the balance
due. H’s “MFS” return claims none of the “MFJ” estimated tax payments. H timely pays the $3,000 shown to be the balance due.
W timely files before H, who also timely files.
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