Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet - 2013 Page 11
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60Note. You may use Form ES-40 to make a payment by check or money
they’ll use Schedule IT-2210 to figure their penalty or exception to the
order. Estimated tax payments may also be made online, via credit
penalty.
card or check, at See line 26 instructions
on page 12 for details about payment options.
Farmers and fishermen have special filing considerations. If at least
two-thirds (2/3) of your gross income is from farming or fishing,
See Income Tax Information Bulletin #3 at
Complete Schedule IT-2210, using the Section D Short Method.
for additional information about estimated taxes.
Schedule IT-2210A should be used by individuals who receive in-
Line 20 – Penalty for underpayment of estimated tax
come (not subject to withholding tax) unevenly during the year. This
schedule will help determine whether a penalty is due, or whether an
You might owe a penalty for the underpayment of estimated tax if you
exception to the penalty has been met.
did not have taxes withheld from your income and/or you did not pay
enough estimated tax throughout the year.
Example. Bill’s income is from selling fireworks in June and July. He
will want to figure any penalty due on Schedule IT-2210A, which may
In fact, not properly paying estimated tax is one of the most common
exempt him from having had to pay estimated tax on the April 15,
errors made in filing Indiana tax returns. Generally, if you owe $1,000
2013 first installment due date.
or more in state and county tax for the year that’s not covered by with-
holding taxes, you need to be making estimated tax payments.
Example. Rachael received a sizeable lump sum distribution in Dec.
of 2013. She figured how much estimated tax was due, and paid it by
You might owe this penalty if:
the Jan. 15, 2014, fourth period installment due date. By completing
•
The total of your credits, including timely estimated tax payments,
Schedule IT-2210A, she shows she owes no penalty for the first three
is less than 90 percent of this year’s tax due or 100 percent* of last
installment periods, and that a proper payment was made for the
year’s tax due, ** or
fourth installment period. She will owe no penalty.
•
You underpaid the minimum amount due for one or more of the
installment periods.
Farmers and Fishermen.
Special options are available if more than two-thirds of your gross
If either of these cases apply to you, you must complete Schedule IT-
income for 2012 and/or 2013 was from farming or fishing.
2210 or IT-2210A to see if you owe a penalty or if you meet an excep-
tion. If you owe this penalty, enclose Schedule IT-2210 or IT-2210A
Option 1. Pay your estimated tax in one payment on or before Jan. 15,
with your tax return and write the penalty amount on Form IT-40, line
2014, and file your tax return by April 15, 2014; or
20.
Option 2. Make no estimated tax payment and file your tax return and
*You must have timely paid 100 percent of lines 8 and 9 of your 2012
pay all the tax due by March 3, 2014.
IT-40 or IT-40PNR. Note: If last year’s Indiana adjusted gross income
was more than $150,000 ($75,000 for married filing separately), you
Example. More than two-thirds of Henry’s gross income is from farm-
must pay 110 percent of last year’s tax (instead of 100%).
ing. He should complete Schedule IT-2210 (not Schedule IT-2210A).
He will be able to use the Section D Short Method to figure his penalty
**Farmers and fishermen should see the special instructions in the
or to show he meets an exception to owing a penalty.
next column.
Visit our website at
to get Schedule IT-2210
Important. The department will automatically figure a penalty for you
or IT-2210A.
if it looks like you owe a penalty for the underpayment of estimated
tax, and:
Line 21 – Refund
•
You didn’t report a penalty amount on line 20, and
•
You didn’t enclose Schedule IT-2210 or Schedule IT-2210A show-
You have a refund if line 18 is greater than the combined amounts
ing you meet an exception to owing a penalty.
entered on lines 19d and 20.
Important. If the combination of line 19d plus line 20 is greater than
Should you use Schedule IT-2210 or IT-2210A?
the amount on line 18, you must make an adjustment. The estimated
Schedule IT-2210 should be used by individuals who receive income
tax carryover amount on line 19d is limited; it cannot be greater than
(not subject to withholding tax) on a fairly even basis throughout the
the remainder of line 18 minus line 20. See the second example about
year. This schedule will help determine whether a penalty is due, or
Stu under the Line 19 instructions on page 10.
whether an exception to the penalty has been met.
Please wait 12 weeks before you contact the department about your
Example. Jim and Sarah together received $4,500 in pension income
refund.
each month. Since their income is received on a fairly even basis,
Page 11
IT-40 Booklet 2013
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