Instructions For Form Mi-2210, Underpayment Of Estimated Income Tax (Page 2 of 2) in pdf

2016 MI-2210, Page 4

FISCAL-YEAR FILERS: Change due dates and interest

Example: Your tax due each period is $2,000. You

rates to correspond with your tax year.

have an underpayment of $1,000 for the first period (due

April 18). On June 10 you send $2,000 to pay the second

Part 1: Estimated Tax Required for the Year

installment. But, $1,000 of this payment goes toward your

Line 5: Figure your 2015 tax from your 2015 return. On

$1,000 underpayment first. Interest is computed on $1,000

the MI-1040 form, subtract the sum of lines 25, 26, 27b,

from April 18 to June 10 (53 days). The remaining $1,000

and 28 from line 21. Enter that amount here or, if the AGI

is applied to your second installment payment, creating a

on your 2015 return is more than $150,000 if filing joint

second period underpayment of $1,000.

or single ($75,000 if married filing separately for 2015),

Interest will continue to accrue on this $1,000 until another

enter 110% of that amount. Fiduciaries, enter the difference

payment is received.

between lines 18 and 19 from your 2015 MI-1041.

Interest rates are set by Treasury twice each year for six-

Line 6: Figure your 2016 tax. On the MI-1040 form,

month periods starting January 1 and July 1. The rate is

subtract the total of lines 25, 26, 27b, and 28 from line 21

1 percent above the prime rate in Michigan. For example,

and enter here. Fiduciaries, enter the difference between

if the Michigan prime rate is 5 percent, your interest rate

line 18 and 19.

for completing the MI-2210 is 6 percent for that six-

Line 10: If you did not receive your income evenly

month period. For current interest rates, visit our Web

throughout the year, you may annualize your income. See

site at for a copy of Revenue

the instructions and Worksheet on this form.

Administrative Bulletin 2016-21.

Line 11: Enter the estimated tax payments you made plus

Part 3: Figuring the Penalty

any withholding. Note the following:

• One-fourth of your total withholding is considered paid

Penalty is 25 percent of the tax due (minimum $25 per

on each due date unless you can document the dates the

quarter) for failing to file estimated payments or 10 percent

tax was withheld.

(minimum $10 per quarter) for failing to pay enough with

your estimates or paying late.

• An overpayment from 2015 that has been credited

forward to 2016 will be applied to the first installment.

Line 24: The underpayment for the penalty charge is

• Do not enter extension payments on this form.

figured the same way as the underpayment for interest.

In column A, enter the estimated tax payments made

Exceptions:

by April 18, 2016, that were for the 2016 tax year. In

• Payments are applied in the quarter they are received.

column B, enter payments made after April 18 and through

June 15, 2016. In column C, enter payments made after

• If an overpayment occurs in any quarter, the

June 15 and through September 15, 2016. In column D,

overpayment amount is carried forward to the next

enter payments made after September 15, 2016, and through

quarter and applied as a timely payment.

January 17, 2017. Extension payments or other payments

• Payments are not carried back to offset underpayments

received after January 17, 2017 are not considered

in previous quarters.

estimated tax payments for tax year 2016.

The amount on line 24 cannot be less than zero.

Part 2: Figuring the Interest

Line 25: Enter 25 percent if estimated tax payments

were not made for 2016. Enter 10 percent if estimated tax

The MI-2210 computes interest to April 18, 2017, or the

payments were made for 2016.

date of payment, whichever is earlier. This part of the form

breaks down underpayments to the payment period they

Example: In the example in Part 2, the $2,000 payment

are due, then gives the interest rate for that period. Interest

received on June 10 is applied to the $2,000 required

is figured for the number of days the installment remained

payment in the second quarter. The penalty in the first

unpaid. All payments are applied to any underpayment first,

quarter is $100 (10 percent of the $1,000 underpayment in

regardless of when the payment is received. The balance (if

the first quarter). The penalty in the second quarter would

any) is applied to the next period.

be zero.

NOTE: Complete lines 11 through 22 for column A

before going to column B, etc. You need only complete

each column to the date the payment was made. If the total

underpayment for any payment period was not paid off with

one payment, you may need to do several calculations in

each column.

Instructions For Form Mi-2210, Underpayment Of Estimated Income Tax Page 2

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