Instructions For Form 221 - Underpayment Of Estimated Tax By Individuals

Arizona Form 221

worksheet on Form 221, page 2. Also, enter the amount

If you have an overpayment on line 15 for the period, you

from line 23 of that worksheet in each column of line 11.

may apply it to a prior period underpayment to stop the

If you use the annualized income installment method, you

accrual of penalty on that underpayment. If you apply an

must check the box on line 11.

overpayment in this manner, use the date the overpayment

was paid when you figure the penalty on the underpayment

2. File and pay by January 31, 2014. If you file your

on line 15. You may then carry the remainder of the

Arizona return by January 31, 2014, and pay in full the

overpayment forward to line 13 of the next period. If you do

amount stated on the return as payable, you do not have

not choose to stop the accrual of penalty on a prior

to make the fourth estimated tax payment. Fiscal year

underpayment, you may carry the entire overpayment

filers must file and pay by the last day of the month

forward to line 13 of the next period.

following the close of the fiscal year.

Part B - Underpayment of Estimated Tax

3. Farmer or fisherman. If you report as a farmer or

fisherman for federal purposes, you only have to make one

Penalty

installment for a taxable year. The due date for this

Compute the penalty by applying the applicable rate to each

installment for a calendar year filer was January 15, 2014.

underpayment. Compute the penalty for the number of days

The due date for a fiscal year filer is the 15th day of the

that the underpayment remained unpaid. The penalty is

first month after the end of the fiscal year. You do not

equal to the interest that would accrue on the underpayment.

have to make this payment if you file your Arizona return

The penalty cannot be more than 10% of the underpayment.

on or before March 1, 2014, and pay in full the amount

Calculate this penalty like interest.

stated on the return as payable. Fiscal year filers must file

and pay on or before the first day of the third month after

The penalty rates are established at various times during the

the end of the fiscal year.

year. The rate for the first quarter of 2014 (January 1, 2014,

through March 31, 2014) was not established by the time the

4. Nonresident alien. If you are an individual who elects to

be treated as a nonresident alien on the federal income

department printed this form. To get the interest rate that

tax return, you may make three estimated payments. The

applies from January 1, 2014 to April 15, 2014, call one of

due dates for these installments were June 17, 2013,

the numbers listed on page 1 of these instructions.

September 16, 2013, and January 15, 2014. The first

NOTE: If you have not paid the underpayment by December

installment must have equaled 50% of the total required

31, 2013, the outstanding penalty that relates to that

payments.

underpayment will compound on January 1, 2014.

Line 12 - Estimated Tax Paid and Withheld

Enter the estimated tax payments you made plus any

Use lines 16 through 29 to compute the penalty for each rate

Arizona income tax withheld for that quarter.

period. List your payments to figure the penalty applicable

to these installments.

In column (a), enter the tax payments you made by April 15,

2013, that were for the 2013 tax year. In column (b), enter

TABLE 1

payments you made after April 15 through June 17, 2013. In

Payments after 4/15/13 through 6/30/13

column (c), enter payments you made after June 17, 2013,

Date

Payment

through September 16, 2013. In column (d), enter payments

you made after September 16, 2013, through January 15, 2014.

When figuring your payment dates and the amounts to enter

on line 12 of each column, apply the following rules.

TABLE 2

1. Include ¼ of your Arizona income tax withheld in each

column. The department considers you to have paid ¼

Payments after 6/30/13 through 9/30/13

of Arizona income tax withheld on each payment due

Date

Payment

date unless you can show otherwise.

2. Include

your

estimated

tax

payments

any

overpayment of tax from your 2012 return that you

elected to apply to your 2013 estimated tax. You should

TABLE 3

report this amount in column (a).

Payments after 9/30/13 through 12/31/13

3. If you file your return and pay the tax due by January 31,

Date

Payment

2014, include on line 12, column (d), the amount of tax

you pay with your return. In this case, you will not owe

a penalty for the payment due by January 15, 2014.

NOTE: If line 12 equals or is more than line 11 in all columns,

you do not owe a penalty. Do not complete the rest of this form.

TABLE 4

You must attach a copy of this form to your return.

Payments after 12/31/13 through 4/15/14

Lines 13 through 15 - Overpayments or

Date

Payment

Underpayments

Complete lines 13 through 15 for one payment period before

you go to the next period.

Instructions For Form 221 - Underpayment Of Estimated Tax By Individuals - 2013 Page 3

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