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INSTRUCTIONS

Part II – Annualized Income Worksheet Instructions

of qualifying retirement income during the period 1/1/01

to 5/31/01, John and Mary would multiply the qualifying

Note:

If you annualize for one period, you must annualize for all

income received during the period 1/1/01 to 5/31/01 by

periods.

the line 5 annualization factor for column (b) $2,500 X 2.4

= $6,000. John and Mary could claim a credit of $130 on

If your income varied during the taxable year you may be able to

line 10, column (b) because the annualized amount of

lower or eliminate the amount of your required installment for one

qualifying retirement income is over $5,000 but not more

or more due dates by using the annualized income installment

than $8,000.

method. For example, an owner of a Christmas tree lot who

receives most of his/her income toward the end of the year might

If you received a “lump sum distribution” during a period,

benefit by using this method. The annualized income installment

see the “Ohio Individual Income Tax Lump Sum Instruc-

may be less than your installment under the regular method for

tion” pamphlet to determine if you qualify for the Lump

one or more due dates, thereby lowering or eliminating the inter-

Sum Retirement Income Credit or the Lump Sum Distri-

est penalty for those due dates.

bution Credit. The pamphlet also provides instructions

and examples on how to compute those credits.

The following instructions provide basic information for the Annu-

alized Income Worksheet. However, you may need to refer to your

If you (or your spouse if filing a joint return) attained age

“Ohio Income Tax Return and Instructions” booklet for additional

65 prior to January 1, 2002, enter in each period the $50

information regarding additions to Federal Adjusted Gross In-

Senior Citizen Credit.

come “(FAGI)”, deductions from FAGI, and credits. Attach sched-

ules and documentation as necessary to support the amounts

Line 14 Refer to the Joint Filing Credit instructions in your 2001

reported.

Ohio Form IT-1040. Compute the Joint Filing Credit

“(JFC)” for a period only if in that period each spouse had

The time periods listed in each column are cumulative. That is,

at least $500 of annualized OAGI excluding interest, divi-

the amounts in columns (b), (c) and (d) include amounts for all

dends, royalties, rents, and capital gains. (Annualize the

previous periods in the taxable year. Also, note that the ending

qualifying income for each period by multiplying it by the

dates of 5/31/01 and 8/31/01 for columns (b) & (c) do not reflect

appropriate annualization factor for the period from line 5

quarterly ending dates.

of the Worksheet.) For each period to which the JFC

applies, multiply the amount on line 13 of the Worksheet

Lines 2 & 3 Refer to Schedule A of your 2001 Ohio Form IT-1040

by the applicable JFC percentage. Determine the appli-

and the related instructions. If in determining Ohio Ad-

cable JFC percentage for each period based upon an-

justed Gross Income (OAGI) you made Schedule A ad-

nualized Ohio Taxable Income for the period shown on

justments to FAGI, enter the cumulative additions and

line 8 of this Worksheet.

cumulative deductions that apply to each period.

Line 16 Refer to Schedules C, D, and E of your 2001 Ohio IT-

Line 10 Refer to Schedule B of your 2001 IT-1040 and the in-

1040 and the related instructions from the 2001 instruc-

structions booklet to determine if the following credits

tions booklet to determine if these credits apply. You

apply to you: Retirement Income Credit, Lump Sum Re-

may claim the credit(s) for a period only if during that

tirement Income Credit, Senior Citizen Credit, Lump Sum

period you have income that qualifies for the credit.

Distribution Credit, the Child and Dependent Care Credit,

Displaced Workers Job Training Credit, Political Cam-

If the Resident Credit applies to a period, multiply the

paign Contribution Credit and the Adoption Credit.

amount on line 15 of this Worksheet by a fraction the

numerator of which is the portion of the OAGI for the

For the Retirement Income Credit and the Lump Sum

period subjected to tax by another state or the District of

Retirement Income Credit, which are credits based upon

Columbia and the denominator of which is the OAGI for

qualifying retirement income, you must annualize the

the period. However, the resident credit cannot exceed

qualifying income for the period by multiplying it by the

the tax actually paid to other states. If the Nonresident/

appropriate annualization factor. For example, assume

Part-Year Resident Credit applies, multiply the amount

that John and Mary Brown are retired and file a joint re-

on line 15 of this Worksheet by the fraction the numerator

turn. Between 1/1/01 and 3/3/01 John and Mary received

of which is the portion of the OAGI for the period that was

$3,000 of income that qualified for the Retirement In-

not earned or received in Ohio and the denominator of

come Credit. In determining their Retirement Income

which is the OAGI for the period.

Credit for the period 1/1/01 to 3/31/01 (Column (a), John

and Mary must multiply the qualifying income for that

If the Nonrefundable Business Credit applies to a pe-

period by the line 5 annualization factor for that period

riod, enter the amount from line 5 of Ohio Schedule E-2.

($3,000 X 4 = $12,000). John and Mary may claim a

credit of $200 on line 10, column (a) because the annu-

Line 17 If you qualified for and claimed the Refundable Busi-

alized amount of qualifying retirement income ($12,000)

ness Credits on your 2001 Ohio IT-1040, line 20, or IT-

is over $8.000. (See the table in IT-1040 instructions

4708, line 16, enter in each column of this line the total

booklet). If John and Mary had instead received $2,500

credit claimed.

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Instructions For Form It-2210 - Interest Penalty On Underpayment Of Ohio Estimated Tax By Individuals - 2000 Page 2

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