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2012 INSTRUCTIONS FOR SC2210

PURPOSE OF FORM. Every taxpayer is required to prepay each year's tax by withholding or estimating tax payments. If you are an

individual, estate or trust other than a qualified farmer or fisherman and SC1040, line 15, or SC1041, line 13 is $100 or more, use this

form to find out if you paid enough income tax during the year. If you did not pay enough, you may have to pay a penalty on the

amount of your underpayment.

FARMERS AND FISHERMEN.

f you meet both tests 1 and 2 below, you will not have to pay a penalty for underpaying estimated

tax:

1. Your gross income from farming and fishing is at least two-thirds of your annual gross income from all sources for 2011 or 2012;

and

2. You filed SC1040 and paid the entire tax due by March 1, 2013.

If you meet this test, enter "F" in the exception box on SC1040, line 33. Attach this form to your tax return.

File federal Form 2210-F “For S.C. purposes” if you meet test 1 but not test 2.

EXCEPTIONS TO THE PENALTY. You will not have to pay the penalty if either of the two following situations applies:

1. You had no tax liability for 2011, and you were a South Carolina resident for the entire year, and your 2011 tax return was (or

would have been had you been required to file) for a full 12 months; or

2. The total tax shown on your 2012 return less the amount of tax you paid through withholding is less than $100. To determine

whether the total tax is less than $100, complete lines 1 through 6.

WHO MUST PAY THE UNDERPAYMENT PENALTY.

In general, you may owe the penalty for 2012 if you did not pay at least the

smaller of:

1. 90% of your 2012 tax liability or

2. 100% of the tax shown on your 2011 tax return. However, if your adjusted gross income is more than $150,000, the 100% rule is

modified to be 110% of the tax shown on your 2011 tax return. The penalty is figured separately for each installment due date.

Therefore, you may owe the penalty for an earlier due date, even if you paid enough tax later to make up the underpayment. This

is true even if you are due a refund when you file your tax return.

ANNUALIZED INCOME INSTALLMENT METHOD. If your income varied during the year due to the seasonal nature of your

business, or for other reasons, you may be able to lower the amount of your required installment for the due dates by using the

Annualized Income Method. To use this method to figure your required installments, complete Schedule AI of federal Form 2210 for

South Carolina purposes. Write the word " annualized" to the left of line 17 to indicate use of this method, and attach a copy of the

Federal Schedule AI for South Carolina. Enter an "A" in the exception box on SC1040, line 33.

WAIVER OF PENALTY. If you have an underpayment on line 13 (line 24 if you use the regular method), all or part of the penalty for

that underpayment may be waived if any of the following applies:

An underpayment was due to a casualty, disaster, or other unusual circumstance and it would be inequitable to impose the

penalty.

In 2011 or 2012, you retired after age 62 or became disabled and your underpayment was due to reasonable cause.

A taxpayer will be granted a waiver of the portion of an underpayment of estimated income tax penalty attributed to personal

service income earned in another state on which income tax due the other state was withheld.

To request any of the above waivers, check box A or B in Part II. If you checked box A, complete only Parts I and II and attach it to

your tax return. (you are not required to figure the amount of penalty to be waived). If you checked box B, complete SC2210 through

line 15 (or line 33 if you use the regular method) without regard to the waiver. Enter the amount you want waivered in parentheses in

the margin to the left of line 16. (line 34 for the regular method). Subtract the amount to be waived from the total penalty without

regard to the waiver and enter the result on line 16 (line 34 for the regular method). Attach a statement explaining the reason for the

waiver. Enter a “W” in the exception box on SC1040, line 33.

HOW TO FIGURE YOUR UNDERPAYMENT (REGULAR METHOD). The underpayment of any installment is the difference between

the amount of your required installment and any payments you made by the due date of the installment. Payments are applied to any

prior underpayment before being applied to the current installment. Income taxes withheld from your salary, pension or winnings are

considered payments of estimated tax in equal installments on the four installment dates, unless you prove otherwise.

PERIOD OF UNDERPAYMENT (REGULAR METHOD). The penalty is applied to the number of days that the installment was not

paid. You figure the period of the underpayment by counting the number of days after the due date of the installment to and including

the date of payment or the end of the rate period (12/31/12 or 4/15/13), whichever is earlier

If you are a calendar year taxpayer, payments were due on April 15, June 15 and September 15, 2012, and January 15, 2013.

Payment of your entire 2012 estimated tax liability, or any balance due, by January 15, 2013, or the filing of your 2012 income tax

return and payment of the tax shown on the return by January 31, 2013, will not relieve you of the penalty if you did not pay the

estimated income tax due earlier in your tax year. If you file your return and pay the tax due by January 31, 2013, you will have no

penalty for the installment due January 15, 2013, and the periods of underpayment for earlier installments will end on January 15,

2013.

Social Security Privacy Act Disclosure

It is mandatory that you provide your social security number on this tax form. 42 U.S.C 405(c)(2)(C)(i) permits a state to use an individual's

social security number as means of identification in administration of any tax. SC Regulation 117-201 mandates that any person required to

make a return to the SC Department of Revenue shall provide identifying numbers, as prescribed, for securing proper identification. Your

social security number is used for identification purposes.

The Family Privacy Protection Act

Under the Family Privacy Protection Act, the collection of personal information from citizens by the Department of Revenue is limited to the

information necessary for the Department to fulfill its statutory duties. In most instances, once this information is collected by the Department, it

is protected by law from public disclosure. In those situations where public disclosure is not prohibited, the Family Privacy Protection Act

prevents such information from being used by third parties for commercial solicitation purposes.

30985022

Form Sc2210 - Underpayment Of Estimated Tax By Individuals, Estates, And Trusts - 2012 Page 5

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