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2017

Department of the Treasury

Internal Revenue Service

Instructions for Form 2210

Underpayment of Estimated Tax by Individuals, Estates, and Trusts

Purpose of Form

Section references are to the Internal Revenue Code unless

otherwise noted.

Generally, use Form 2210 to see if you owe a penalty for

General Instructions

underpaying your estimated tax and, if you do, to figure the

amount of the penalty. Even if you aren't required to file Form

2210, you can use it to figure your penalty if you wish to do so. In

Future Developments

that case, enter the penalty on your return, but don't file Form

2210.

For the latest information about developments related to Form

2210 and its instructions, such as legislation enacted after they

Who Must File Form 2210

were published, go to IRS.gov/Form2210.

Use the flowchart at the top of Form 2210, page 1, to see if you

What's New

must file this form.

Personal exemption amount for 2017. The personal

If box B, C, or D in Part II is checked, you must figure the

penalty yourself and attach Form 2210 to your return.

exemption amount remains at $4,050 for 2017. There is a

phaseout of the exemption, the amount of which is determined

CAUTION

by the taxpayer's filing status and adjusted gross income.

The IRS Will Figure the Penalty for

Limit on itemized deductions. For 2017, itemized deductions

You

for taxpayers with adjusted gross incomes above $156,900 may

be reduced.

If you didn't check box B, C, or D in Part II, you don't need to

figure the penalty. The IRS will figure any penalty for

Health coverage tax credit. The health coverage tax credit

underpayment of estimated tax and send you a bill. If you file

has been extended.

your return by April 17, 2018, no interest will be charged on the

Reminders

penalty if you pay the penalty by the date shown on the bill. If

you want us to figure the penalty for you, complete your return as

Saturday, Sunday, or legal holiday. Generally, if a due date

usual. Leave the penalty line on your return blank; don't file Form

for performing any act for tax purposes falls on a Saturday,

2210.

Sunday, or legal holiday, the act is considered to be performed

Other Methods of Figuring the

timely if it's performed no later than the next day that isn't a

Saturday, Sunday, or legal holiday. A legal holiday is any legal

Penalty

holiday in the District of Columbia. These instructions make the

adjustment for Saturdays, Sundays, and legal holidays.

We realize that there are different ways to figure the correct

penalty. You don't have to use the method used on Form 2210

Additional medicare tax. A 0.9% Additional Medicare Tax

as long as you enter the correct penalty amount on the

applies to Medicare wages, railroad retirement act (RRTA)

“Estimated tax penalty” line of your return.

compensation, and self-employment income over a threshold

amount based on your filing status. See Form 8959.

However, if you are required to file Form 2210 because one

or more of the boxes in Part II applies, you must complete

Net investment income tax. You may be subject to Net

certain lines and enter the penalty on the “Estimated tax penalty”

Investment Income Tax (NIIT). NIIT is a 3.8% (0.038) tax on the

line of your return.

lesser of net investment income or the excess of your modified

If you use the short method, complete Part I, check the

adjusted gross income over a threshold amount. See Form

box(es) that applies in Part II, and complete Part III. Enter the

8960.

penalty on Form 2210, line 17, and on the “Estimated tax

Premium tax credit. You may be eligible to claim the premium

penalty” line on your tax return.

tax credit (PTC). The PTC is a tax credit for certain people who

If you use the regular method, complete Part I, check the

enroll, or whose family member enrolls, in a qualified health plan

box(es) that applies in Part II, complete Part IV, Section A, and

offered through a Health Insurance Marketplace (also called an

the penalty worksheet, later. Enter the penalty on Form 2210,

Exchange). The PTC provides financial assistance to pay the

line 27, and on the “Estimated tax penalty” line on your tax

premiums by reducing the amount of tax you owe, giving you a

return.

refund, or increasing your refund amount. Advance payment of

If you use the annualized income installment method,

the PTC may be made through the Marketplace directly to your

complete Part I, check the box(es) that applies in Part II,

insurance provider. If you received premium assistance through

complete Schedule AI, complete Part IV, Section A, and the

advance payments of the PTC in 2017, and the amount

penalty worksheet (Worksheet for Form 2210, Part IV,

advanced exceeded the amount of PTC you can take, you could

Section B-Figure the Penalty), later. Enter the penalty on Form

be subject to a penalty for underpaying your estimated tax. For

2210, line 27, and on the “Estimated tax penalty” line on your tax

example, you completed Form 8962, Premium Tax Credit, and

return.

have additional income tax liability because too much was

advanced to your insurance provider. For more information

about the PTC and advance payments of the PTC, see Form

8962 and Pub. 974.

Jan 04, 2018

Cat. No. 63610I

Instructions For Form 2210 - Underpayment Of Estimated Tax By Individuals, Estates, And Trusts - 2017

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