Annualized Income Installment Worksheet For Underpayment Of Estimated Tax (Page 2 of 3) in pdf

Annualized Income Installment Worksheet For Underpayment Of Estimated Tax Page 2

ANNUALIZED INSTALLMENT WORKSHEET

If your income varied during the year because, for example, you own a seasonal business or the majority of your income

was received at once, you may be able to lower or eliminate the amount of your quarterly estimated tax payments by using

the annualized income installment method. Use the Annualized Income Installment Worksheet to calculate the required

2002 installment for each payment due date.

SPECIFIC INSTRUCTIONS

NOTE: You must complete lines 1-18 of each column before going on to the next column.

(First complete Form 2220ME, lines 1 through 4)

Line 1 - Annualized periods:

These periods may or may not be the same as your federal periods. See 36 M.R.S.A. §

5228(5).

Line 6 - Alternative minimum tax:

For the amount in each column, compute the annualized alternative minimum tax

on Schedule B of Form 1120ME. Enter on lines 19, 20 and 21 of Schedule B the annualized amounts calculated for federal

purposes for each annualized period.

Line 8.

Enter the

credits

the corporation is entitled to for the months shown in each column on line 1.

Line 12.

Complete lines 13 through 18 in each of the preceding columns before completing line 12.

Line 14 - Large corporations:

A large corporation is defined by IRC § 6655(g)(2)(A). Such large corporations may

elect to determine the first required installment for any taxable year based on the preceding year’s state income tax liability,

if that preceding year was a taxable year of 12 months. However, if the corporation so elects, the second required install-

ment for the taxable year must equal 90% of the corporation’s income tax liability for the first half of the current year, less

the amount of the first installment for the taxable year as determined under this provision.

Annualized Income Installment Worksheet For Underpayment Of Estimated Tax Page 2