Instructions For Completion Of Form De-2210 Form De2210-I (For Underpayment Of Estimated Taxes) printable pdf download

DELAWARE

INSTRUCTIONS FOR COMPLETION OF FORM DE-2210

FORM DE2210-I

(FOR UNDERPAYMENT OF ESTIMATED TAXES)

Purpose of Form

Speci c Instructions

Use Form DE2210 to compute your penalty for underpaying your

The DE 2210 is divided into 5 parts as follows:

estimated taxes. If you choose to compute your penalty using this form

The Required Annual Payment

and a penalty due is calculated OR if you use Part 3 – Annualized Install-

The Short Method

ment Method:

Annualized Income Installment Method

•

Check the “Form DE 2210 Attached” box on the front of your

Computation of the Over/Underpayment

Delaware personal income tax return and

Computation of the Penalty

•

Attach your completed Form DE 2210 to your return.

The Required Annual Payment.

Do not submit a Federal Form 2210 instead of a Delaware Form DE 2210.

Use this part to gure the amount of your required annual payment.

Do not submit computer worksheets in lieu of the Form DE 2210.

Note: line numbers in parentheses refer to lines on the Non-Resident

Use of Form

Form.

A. Enter 90% of Line 16 (Line 47) from your 2013 Delaware Return.

You may choose to use the Short Method (Part 2) of this form if you

Enter 100% (110% if your 2012 Delaware AGI is more than

made equal estimated payments on or before the dates they were due

150,000 or 75,000 if ling status is 3) of Line 16 (Line 47) of your

or made no estimated tax payments.

You may choose to use the

2012 Delaware Return.

Annualized Method (Part 3) of this form if your income was earned

C. Enter the smaller of Line A or B. This is your required annual

unevenly throughout the year. Resident lers using Filing Status 4

payment, which should have been made in 4 equal payments.

should combine (net) the amounts in both columns of their tax return

D. Enter the total amount of Delaware tax withheld, S Corp

before transferring gures to the DE2210 (create one combined Form

payments made on your behalf, and approved Refundable

DE2210 for both spouses).

Business Credits.

Subtract Line D from Line C. Note: if this amount is $400 or less,

Who Must Pay the Underpayment Penalty:

stop here. You do not owe the penalty.

In general, you will owe the penalty for 2013 if you did not pay at least

The Short Method.

the smaller of:

1. 90% of the Tax Balance shown on Line 16 of the 2013 Delaware

Once you have gured the required annual payment, you may use the

Resident Tax Return (Line 47 on the Non- Resident Form); or

Short Method ONLY if:

2. 100% of the Tax Balance shown on Line 16 of your 2012 return

a. You made no estimated payments; or

(Line 47 on the Non-Resident Return). Note: If you are not a

b. You paid estimated tax in 4 equal amounts on or before the due

dates (April 30th, June 17th, September 16th, and January 15th).

farmer or sherman and your Adjusted Gross Income (AGI) on

the 2012 return is in excess of $150,000 ($75,000 if Married Filing

You may not use the Short Method if you made any of the payments late.

Separate Returns, Filing Status 3), you must use 110% of the 2012

You may not use the Short Method if any Capital Gain Tax payments

Tax Balance.

were made on your behalf.

Line by Line instructions:

The penalty is

gured separately for each installment due date.

Enter the total of your Estimated Tax payments.

Therefore, you may owe the penalty for an earlier due date even if you

G. Enter the total amount of Delaware tax withheld, S Corp

paid enough tax to make up the underpayment (even if you are due a

payments made on your behalf, and approved Refundable

refund when you le your return).

Business Credits.

H. Add lines F and G.

Exceptions to the Penalty:

Total Underpayment for the year (Subtract Line H from Line C). If

zero or less stop here. You do not owe the penalty.

You will not have to pay the penalty if either:

Multiply Line I times 0.12.

K. If the amount on Line I was paid on or after April 30, 2014 , enter

1. You had no Delaware tax liability in the previous year (Line 16 on

zero (0). If it was paid before April 30, 2014, count the number of

the 2012 Resident return or Line 47 on the Non-Resident form);

days from the date you paid the amount on Line I to April 30,

2014 Multiply the number of days by 0.0005 times the amount

2. The tax liability minus non-refundable credits (Line 16 on the

on Line I and enter the results on Line K.

2013 Resident return or Line 47 on the Non-Resident form)

L. Subtract Line K from Line J. This is your penalty for underpayment

of Estimated Taxes. Add this amount to the other penalties and

MINUS refundable credits (Line 21 on the 2013 Resident return or

Line 52 on the 2013 Non-Resident return) is less than $400; or

interest due on Line 25 of the Resident return and Line 56 of the

3. You were a Part-Year resident during 2013; or

Non-Resident return.

4. You derived at least 2/3 of your Gross Income from farming or

shing, and paid the total estimated tax due by January 15th

The Annualized Installment Method.

2014, or led your return by March 3, 2014 AND paid the total tax

due at that time.

This method should be used by individuals whose income is earned in

an uneven fashion throughout the year. Examples would be receiving

Waiver of the Penalty:

large Capital Gains or bonuses late in the year.

Once the penalty has been assessed you may request a waiver of the

To use this form, enter the income and deductions applicable to each

penalty by writing to:

period as follows:

Tax Conferee Delaware Division of Revenue

P O Box 8714

Column 1 enter the income/deductions for the period 01/01/2013

Wilmington, DE 19899-8714

through 03/31/2013

Reasons for requesting a waiver are:

Column 2 enter the income/deductions for the period 01/01/2013

The underpayment was due to a casualty, disaster, or other

through 05/31/2013

unusual circumstance (explain the circumstance); or

In 2012 or 2013 you retired after age 62 or became disabled.

Column 3 enter the income/deductions for the period 01/01/2013

through 08/31/2013

If one of these reasons applies to you, DO NOT check the 2210 indicator

box and DO NOT submit the form. You will be given a chance to request

Column 4 enter the income/deductions for the period 01/01/2013

a waiver after the penalty has been assessed.

through 12/31/2013

Instructions For Completion Of Form De-2210 Form De2210-I (For Underpayment Of Estimated Taxes)

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