The IA 2210 is used to determine if an individual taxpayer paid income tax sufficiently throughout the year. This form also calculates if any penalty is due.

If you are an individual taxpayer, other than a qualifying farmer or fisher, you may use this form to determine whether your income tax was sufficiently paid throughout the year by withholding or by estimate payments. If they were not, you may owe a penalty. The estimated tax penalty is 7% per year for the tax period January 1, 2003, through December 31, 2003, and 6% per year for the tax period January 1, 2004, through December 31, 2004. The changes in the estimated tax penalty apply to amounts arising during these periods. This form will help you determine whether you are subject to such a penalty.

Individual taxpayers with W-2 wages/income only are not subject to 2210 penalty and do not complete the 2210.

Taxpayers who do not have tax withheld from their paychecks must pay tax on their income by making estimate tax payments on a quarterly basis.

Basic IA 2210 Calculation Criteria

• Installment period due dates are important. When a due date is missed, penalty applies in most cases.
• Payments are first carried back to any prior period with an underpayment.
• Any overpayments are carried forward to the next period.
• Any credit carryforward from prior year is applied to the April 30 installment.
• There may be more than one penalty calculation for an installment period if more than one payment was made in that period.
• Withholding is credited equally in each installment period.

Tax on Annualized 2003 Income:

If your income varies throughout the tax year, you may be able to reduce or eliminate the amount of one or more of the required installments by using the annualized income installment method. If you use this method, you must check the yes box here.

Back