U.S. Individual Income Tax Return

2210 Inst

U.S. Individual Income Tax Return

OMB: 1545-0074

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Form

2210

Department of the Treasury
Internal Revenue Service

Underpayment of
Estimated Tax by Individuals, Estates, and Trusts
©

See separate instructions.
Attach to Form 1040, 1040A, 1040NR, 1040NR-EZ, or 1041.

OMB No. 1545-0140

2008
Attachment
Sequence No.

Name(s) shown on tax return

Identifying number

Do You Have To File Form 2210?
Complete lines 1 through 7 below. Is line 7 less than $1,000?
Ä

Yes

You do not owe a penalty. Do not file Form 2210
© (but if box E in Part II applies, you must file page 1
of Form 2210).

Yes

You must file Form 2210. Does box B, C, or
© D in Part II apply?

Complete lines 8 and 9 below. Is line 6 equal to or more
than line 9?
Ä

Yes

You may owe a penalty. Does any box in Part II below apply?

Yes

No
No

Part I
1
2
3

4
5
6
7
8
9

B
C
D

You are not required to figure your penalty because
the IRS will figure it and send you a bill for any unpaid
amount. If you want to figure it, you may use Part III
or Part IV as a worksheet and enter your penalty
amount on your tax return, but file only page 1 of
Form 2210.

Required Annual Payment

1
Enter your 2008 tax after credits from Form 1040, line 56 (see instructions if not filing Form 1040)
2
Other taxes, including self-employment tax (see page 2 of the instructions)
Refundable credits. Enter the total of your earned income credit, additional child tax credit, credit
for federal tax paid on fuels, health coverage tax credit, refundable credit for prior year minimum
)
3 (
tax, first-time homebuyer credit, and recovery rebate credit
Current year tax. Combine lines 1, 2, and 3. If less than $1,000, you do not owe a penalty;
4
do not file Form 2210
5
Multiply line 4 by 90% (.90)
6
Withholding taxes. Do not include estimated tax payments. (see page 2 of the instructions)
7
Subtract line 6 from line 4. If less than $1,000, you do not owe a penalty; do not file Form 2210
8
Maximum required annual payment based on prior year’s tax (see page 2 of the instructions)
9
Required annual payment. Enter the smaller of line 5 or line 8
Next: Is line 9 more than line 6?
No. You do not owe a penalty. Do not file Form 2210 unless box E below applies.
Yes. You may owe a penalty, but do not file Form 2210 unless one or more boxes in Part II below applies.
● If box B, C, or D applies, you must figure your penalty and file Form 2210.
● If only box A or E (or both) applies, file only page 1 of Form 2210. You are not required to figure your penalty; the IRS
will figure it and send you a bill for any unpaid amount. If you want to figure your penalty, you may use Part III or IV as
a worksheet and enter your penalty on your tax return, but file only page 1 of Form 2210.

Part II
A

Ä
Do not file Form 2210. You are not required to figure
your penalty because the IRS will figure it and send
you a bill for any unpaid amount. If you want to figure
it, you may use Part III or Part IV as a worksheet and
enter your penalty amount on your tax return, but do
not file Form 2210.

Reasons for Filing. Check applicable boxes. If none apply, do not file Form 2210.
You request a waiver (see page 2 of the instructions) of your entire penalty. You must check this box and file page 1
of Form 2210, but you are not required to figure your penalty.
You request a waiver (see page 2 of the instructions) of part of your penalty. You must figure your penalty and waiver
amount and file Form 2210.
Your income varied during the year and your penalty is reduced or eliminated when figured using the annualized
income installment method. You must figure the penalty using Schedule Al and file Form 2210.
Your penalty is lower when figured by treating the federal income tax withheld from your income as paid on the
dates it was actually withheld, instead of in equal amounts on the payment due dates. You must figure your penalty
and file Form 2210.
You filed or are filing a joint return for either 2007 or 2008, but not for both years, and line 8 above is smaller than
line 5 above. You must file page 1 of Form 2210, but you are not required to figure your penalty (unless box B,
C, or D applies).

For Paperwork Reduction Act Notice, see page 6 of separate instructions.

Cat. No. 11744P

Form

2210

(2008)

Form 2210 (2008)

Page

Part III
Short Method
Can You Use
the Short Method?

Must You Use
the Regular Method?

You may use the short method if:
● You made no estimated tax payments (or your only payments were
withheld federal income tax), or
● You paid the same amount of estimated tax on each of the four
payment due dates.
You must use the regular method (Part IV) instead of the short method if:
● You made any estimated tax payments late,
● You checked box C or D in Part II, or
● You are filing Form 1040NR or 1040NR-EZ and you did not receive
wages as an employee subject to U.S. income tax withholding.

Note: If any payment was made earlier than the due date, you may use the short method, but using it may cause
you to pay a larger penalty than the regular method. If the payment was only a few days early, the difference is
likely to be small.
10

Enter the amount from Form 2210, line 9

Enter the amount, if any, from Form 2210, line 6

Enter the total amount, if any, of estimated tax payments you made

13
14

Add lines 11 and 12
Total underpayment for year. Subtract line 13 from line 10. If zero or less, stop here; you do
not owe the penalty. Do not file Form 2210 unless you checked box E in Part II

Multiply line 14 by .03571

● If the amount on line 14 was paid on or after 4/15/09, enter -0-.
● If the amount on line 14 was paid before 4/15/09, make the following computation to find the
amount to enter on line 16.
Amount on
3
line 14

Number of days paid
3
before 4/15/09

.00014

Penalty. Subtract line 16 from line 15. Enter the result here and on Form 1040, line 76; Form
1040A, line 48; Form 1040NR, line 74; Form 1040NR-EZ, line 26; or Form 1041, line 26. Do not
©
file Form 2210 unless you checked a box in Part II

17
Form

2210

(2008)

Form 2210 (2008)

Page

Part IV

Regular Method (See page 3 of the instructions if you are filing Form 1040NR or 1040NR-EZ.)
Payment Due Dates
Section A—Figure Your Underpayment
(a)
(b)
(c)
(d)
4/15/08
18

20
21
22
23
24
25

Required installments. If box C in Part II applies, enter
the amounts from Schedule AI, line 25. Otherwise, enter
25% (.25) of line 9, Form 2210, in each column
Estimated tax paid and tax withheld (see page 3 of
the instructions). For column (a) only, also enter the
amount from line 19 on line 23. If line 19 is equal to
or more than line 18 for all payment periods, stop
here; you do not owe a penalty. Do not file Form
2210 unless you checked a box in Part II
Complete lines 20 through 26 of one column
before going to line 20 of the next column.
Enter the amount, if any, from line 26 in the previous
column
Add lines 19 and 20
Add the amounts on lines 24 and 25 in the previous column
Subtract line 22 from line 21. If zero or less, enter -0-.
For column (a) only, enter the amount from line 19
If line 23 is zero, subtract line 21 from line 22.
Otherwise, enter -0Underpayment. If line 18 is equal to or more than
line 23, subtract line 23 from line 18. Then go to line
20 of the next column. Otherwise, go to line 26 ©
Overpayment. If line 23 is more than line 18, subtract line
18 from line 23. Then go to line 20 of the next column

6/15/08

9/15/08

1/15/09

20
21
22
23
24

25
26

Rate Period 4

Rate Period 3

Rate Period 2

Rate Period 1

Section B—Figure the Penalty (Complete lines 27 through 34 of one column before going to the next column.)

4/15/08

April 16, 2008—June 30, 2008
Number of days from the date shown above
line 27 to the date the amount on line 25 was paid
or 6/30/08, whichever is earlier

Underpayment on line 25
Number of
(see page 4 of
days on line 27
3
3 .06
the instructions)
366

28 $

Days:

6/15/08
Days:

$
6/30/08

July 1, 2008—September 30, 2008

Days:

Number of days from the date shown above
line 29 to the date the amount on line 25 was paid
or 9/30/08, whichever is earlier

Underpayment on line 25
Number of
(see page 4 of
days on line 29
3
3 .05
the instructions)
366

30 $

6/30/08
Days:

$
9/30/08

October 1, 2008—December 31, 2008

Days:

Number of days from the date shown above
line 31 to the date the amount on line 25 was paid
or 12/31/08, whichever is earlier

Underpayment on line 25
Number of
(see page 4 of
days on line 31
3
3 .06
the instructions)
366

32 $

Days:

Number of days from the date shown above line
33 to the date the amount on line 25 was paid
or 4/15/09, whichever is earlier

Underpayment on line 25
Number of
(see page 4 of
days on line 33
3
3 .05
the instructions)
365

34 $

$
9/30/08

12/31/08

January 1, 2009—April 15, 2009

9/15/08
Days:

9/30/08
Days:

$
12/31/08

Days:

12/31/08
Days:

Penalty. Add all amounts on lines 28, 30, 32, and 34 in all columns. Enter the total here and on Form
1040, line 76; Form 1040A, line 48; Form 1040NR, line 74; Form 1040NR-EZ, line 26; or Form 1041,
©
line 26. Do not file Form 2210 unless you checked a box in Part II

1/15/09
Days:

35 $
Form

2210

(2008)

Form 2210 (2008)

Page

Schedule AI—Annualized Income Installment Method (See pages 5 and 6 of the instructions.)
Estates and trusts, do not use the period ending dates
shown to the right. Instead, use the following: 2/29/08,
4/30/08, 7/31/08, and 11/30/08.

Part I
1

(a)
1/1/08–3/31/08

Enter your adjusted gross income for each period (see
instructions). (Estates and trusts, enter your taxable income
without your exemption for each period)
Annualization amounts. (Estates and trusts, see instructions)

If you itemize, enter itemized deductions for the period shown in
each column. All others enter -0-, and skip to line 7. Exception:
Estates and trusts, skip to line 9 and enter amount from line 3

Annualized income. Multiply line 1 by line 2

Annualization amounts

Multiply line 4 by line 5 (see instructions if line 3 is more than
$79,975)
In each column, enter the full amount of your standard deduction
from Form 1040, line 40, or Form 1040A, line 24 (Form 1040NR
or 1040NR-EZ filers, enter -0-. Exception: Indian students and
business apprentices, see instructions.)

8
9
10

(d)
1/1/08–12/31/08

Annualized Income Installments

2
3

(b)
1/1/08–5/31/08

Enter the larger of line 6 or line 7
Subtract line 8 from line 3
In each column, multiply $3,500 by the total number of
exemptions claimed (see instructions if line 3 is more than
$119,975). (Estates, trusts, and Form 1040NR or 1040NR-EZ
filers, (see instructions)

11
12
13
14
15

Subtract line 10 from line 9. If zero or less, enter -0-

For each period, enter the same type of credits as allowed on
Form 2210, Part I, lines 1 and 3 (see instructions)

17
18
19

Subtract line 16 from line 15. If zero or less, enter -0-

Figure your tax on the amount on line 11 (see instructions)
Self-employment tax from line 34 (complete Part II below)
Enter other taxes for each payment period (see instructions)
Total tax. Add lines 12, 13, and 14

Applicable percentage
Multiply line 17 by line 18

1
2
3

4
5

2.4

1.5

2.4

1.5

22.5%

45%

67.5%

90%

$25,500

$42,500

$68,000

$102,000

0.496

0.2976

0.186

0.124

0.116

0.0696

0.0435

0.029

7
8
9

10
11
12
13
14
15
16
17
18
19

Complete lines 20–25 of one column before going to line 20
of the next column.

20
21
22

Enter the total of the amounts in all previous columns of line 25

Subtract line 25 of the previous column from line 24 of that
column

24
25

Add lines 22 and 23
Enter the smaller of line 21 or line 24 here and on
Form 2210, line 18

Subtract line 20 from line 19. If zero or less, enter -0Enter 25% (.25) of line 9 on page 1 of Form 2210 in each column

Part II

20
21
22
23
24
25

Annualized Self-Employment Tax (Form 1040 filers only)

Net earnings from self-employment for the period (see
instructions)

Prorated social security tax limit

Enter actual wages for the period subject to social security tax or
the 6.2% portion of the 7.65% railroad retirement (tier 1) tax

29
30
31
32
33
34

Subtract line 28 from line 27. If zero or less, enter -0Annualization amounts
Multiply line 30 by the smaller of line 26 or line 29
Annualization amounts
Multiply line 26 by line 32
Add lines 31 and 33. Enter here and on line 13 above

26
27
28
29
30
31
32
33
34

Form

2210

(2008)

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Instructions for Form 2210

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2008

Department of the Treasury
Internal Revenue Service

Instructions for Form 2210
Underpayment of Estimated Tax by Individuals, Estates, and Trusts
Section references are to the Internal Revenue Code unless
otherwise noted.

General Instructions
What’s New—Disaster Areas
Generally, required estimated tax payment deadlines were
extended for taxpayers affected by federally declared disasters.
You will be granted a waiver of all or part of your underpayment
of tax penalty for late payments due to such disaster. See
Federally declared disaster under Waiver of Penalty on page 2.

Purpose of Form
Generally, use Form 2210 to see if you owe a penalty for
underpaying your estimated tax and, if you do, to figure the
amount of the penalty. If you are not required to file Form 2210,
you can use it to figure your penalty if you wish to do so. In that
case, enter the penalty on your return, but do not file Form
2210.

Who Must File Form 2210
In most cases, you do not need to file Form 2210. The IRS will
figure any penalty you owe and send you a bill. See The IRS
Will Figure the Penalty for You below. Use the flowchart at the
top of page 1 of Form 2210 to see if you must file the form.

The IRS Will Figure the Penalty for You
Because Form 2210 is complicated, we strongly encourage you
to let the IRS figure the penalty. If you owe a penalty, we will
send you a bill. If you file your return by April 15, 2009, we will
not charge you interest on the penalty if you pay by the date
specified on the bill.
If you want us to figure the penalty for you, complete your
return as usual. Leave the penalty line on your return blank; do
not file Form 2210.

CAUTION

See Part II of the form. If box B, C, or D is checked, you
must figure the penalty yourself and attach a completed
Form 2210 to your return.

Other Methods of Figuring the Penalty
We realize that there are different ways to figure the correct
penalty. You do not have to use the method used on Form 2210
as long as you enter the correct penalty amount on the penalty
line of your return.
However, if you are required to file Form 2210 because one
or more of the boxes in Part II applies to you, you must
complete certain lines and enter the penalty on the estimated
tax penalty line of your return.
• If you use the short method, check the applicable boxes in
Part II, complete lines 1 through 14, and enter the penalty on
line 17 and the applicable line of your tax return.
• If you use the regular method, check the applicable boxes in
Part II, complete lines 1 through 9 and lines 18 through 26, and
enter the penalty on line 35 and the applicable line of your tax
return.
• If you use the annualized income installment method, check
the applicable boxes in Part II, complete lines 1 through 9,
Schedule AI, and then lines 18 through 26. Enter the penalty on
line 35 and the applicable line of your tax return.

Who Must Pay the Underpayment
Penalty
In general, you may owe the penalty for 2008 if you did not pay
at least the smaller of:
• 90% of the tax shown on your 2008 tax return, or
• 100% of the tax shown on your 2007 tax return (110% of that
amount if you are not a farmer or fisherman and the adjusted
gross income (AGI) shown on that return is more than
$150,000, or, if married filing separately for 2008, more than
$75,000).
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. However, you may be able to reduce or
eliminate the penalty by using the annualized income
installment method. For details, see the Schedule AI
instructions beginning on page 5.
Return. In these instructions, “return” refers to your original
return. However, an amended return is considered the original
return if it is filed by the due date (including extensions) of the
original return. Also, a joint return that replaces previously filed
separate returns is considered the original return.

Exceptions to the Penalty
You will not have to pay the penalty if either (1) or (2) applies.
1. You had no tax liability for 2007, you were a U.S. citizen
or resident alien for the entire year (or an estate of a domestic
decedent or a domestic trust), and your 2007 tax return was (or
would have been had you been required to file) for a full 12
months.
2. The total tax shown on your 2008 return minus the
amount of tax you paid through withholding is less than $1,000.
To determine whether the total tax is less than $1,000,
complete lines 1 through 7.
Estates and trusts. No penalty applies to either of the
following.
• A decedent’s estate for any tax year ending before the date
that is 2 years after the decedent’s death.
• A trust that was treated as owned by the decedent if the trust
will receive the residue of the decedent’s estate under the will
(or if no will is admitted to probate, the trust primarily
responsible for paying debts, taxes, and expenses of
administration) for any tax year ending before the date that is 2
years after the decedent’s death.

Special Rules for Farmers and Fishermen
If you meet both tests 1 and 2 below, you do not owe a penalty
for underpaying estimated tax.
1. Your gross income from farming or fishing is at least
two-thirds of your annual gross income from all sources for
2007 or 2008.
2. You filed Form 1040 or 1041 and paid the entire tax due
by March 2, 2009.
See chapter 2 of Pub. 505, Tax Withholding and Estimated
Tax, for the definition of gross income from farming and fishing.
If you meet test 1 but not test 2, use Form 2210-F,
Underpayment of Estimated Tax by Farmers and Fishermen, to

Cat. No. 63610I

Page 2 of 6

Instructions for Form 2210

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see if you owe a penalty. If you do not meet test 1, use Form
2210.

If you file an amended return by the due date of your original
return, use the amounts shown on your amended return to
figure your underpayment. If you file an amended return after
the due date, use the amounts shown on the original return.

Waiver of Penalty
If you have an underpayment, all or part of the penalty for that
underpayment will be waived if the IRS determines that:
• In 2007 or 2008, you retired after reaching age 62 or became
disabled, and your underpayment was due to reasonable
cause, or
• The underpayment was due to a casualty, disaster, or other
unusual circumstance, and it would be inequitable to impose
the penalty.
Federally declared disaster. Certain estimated tax payment
deadlines for taxpayers who reside or have a business in a
federally declared disaster area are postponed for a period
during and after the disaster. During the processing of your tax
return, the IRS automatically identifies taxpayers located in a
covered disaster area (by county or parish) and applies the
appropriate penalty relief. Do not file Form 2210 if your
underpayment was due to a federally declared disaster. If you
still owe a penalty after the automatic waiver is applied, we will
send you a bill.
Individuals, estates, and trusts not in a covered disaster area
but whose books, records, or tax professionals’ offices are in a
covered area are also entitled to relief. Also eligible are relief
workers affiliated with a recognized government or charitable
organization assisting in the relief activities in a covered
disaster area. If you meet either of these eligibility
requirements, you must call the IRS disaster hotline at
1-866-562-5227 and identify yourself as eligible for this relief.
Details on the applicable disaster postponement period can
be found at http://www.irs.gov/individuals/index.html. Select Tax
Relief in Disaster Situations and then the federally declared
disaster that affected you.
If requesting a waiver, do the following.
• Check box A or box B in Part II.
• If you checked box A, complete only page 1 of Form 2210
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 Form 2210 through line 16
(line 34 if you use the regular method) without regard to the
waiver. Enter the amount you want waived in parentheses on
the dotted line next to line 17 (line 35 for the regular method).
Subtract this amount from the total penalty you figured without
regard to the waiver, and enter the result on line 17 (line 35 for
the regular method).
• Attach Form 2210 and a statement to your return explaining
the reasons you were unable to meet the estimated tax
requirements and the time period for which you are requesting
a waiver.
• If you are requesting a waiver due to retirement or disability,
attach documentation that shows your retirement date (and
your age on that date) or the date you became disabled.
• If you are requesting a waiver due to a casualty, disaster
(other than a federally declared disaster as discussed above),
or other unusual circumstance, attach documentation such as
copies of police and insurance company reports.
The IRS will review the information you provide and decide
whether to grant your request for a waiver.

Exception. If you and your spouse file a joint return after the
due date to replace previously filed separate returns, use the
amounts shown on the joint return to figure your underpayment.

Line 1
Enter the amount from Form 1040, line 56; Form 1040A, line
35; Form 1040NR, line 51; or Form 1040NR-EZ, line 15. For an
estate or trust, enter the amount from Form 1041, Schedule G,
line 4.

Line 2
Enter the total of the following amounts on line 2.
• Self-employment tax.
• Tax from recapture of investment credit, low-income housing
credit, qualified electric vehicle credit, Indian employment credit,
new markets credit, alternative motor vehicle credit, alternative
fuel vehicle refueling property credit, or credit for
employer-provided childcare facilities.
• Tax on early distributions from (a) an IRA or other qualified
retirement plan, (b) an annuity, or (c) a modified endowment
contract entered into after June 20, 1988.
• Tax on distributions from a Coverdell education savings
account or a qualified tuition program not used for qualified
education expenses.
• Tax on Archer MSA, Medicare Advantage MSA, or health
savings account distributions not used for qualified medical
expenses.
• Additional tax on a health savings account because you did
not remain an eligible individual during the test period.
• Section 72(m)(5) excess benefits tax.
• Advance earned income credit payments.
• Tax on accumulation distribution of trusts.
• Interest due under sections 453(l)(3) and 453A(c) on certain
installment sales of property.
• An increase or decrease in tax as a shareholder in a qualified
electing fund.
• Tax on electing small business trusts included on Form 1041,
Schedule G, line 7.
• Tax on income not effectively connected with a U.S. trade or
business from Form 1040NR, lines 52 and 55.
• Additional tax on income you received from a nonqualified
deferred compensation plan that fails to meet certain
requirements.
• Household employment taxes, before subtracting any
advance EIC payments made to your employees. Do not
include this amount if you will enter -0- on Form 2210, line 6,
and the amount on line 4 (excluding household employment
taxes) would be less than $1,000.
• Additional tax on recapture of a charitable contribution
deduction relating to a fractional interest in tangible personal
property.

Line 6
Enter the taxes withheld from Form 1040, lines 62 and 65; Form
1040A, line 38, plus any excess social security and tier 1
railroad retirement tax entered on line 43; Form 1040NR, lines
58, 60, 65, 66a, 66b, 67a, and 67b; or Form 1040NR-EZ, line
18. For an estate or trust, enter the amount from Form 1041,
line 24e.

Additional Information
See Pub. 505, chapter 4, for more details and examples of
filled-in Forms 2210.
For guidance on figuring estimated taxes for trusts and
certain estates, see Notice 87-32, 1987-1 C.B. 477.

Line 8

Part I—Required Annual Payment

Enter the tax shown on your 2007 tax return (110% of that
amount if the adjusted gross income shown on that return is
more than $150,000, or, if married filing separately for 2008,
more than $75,000). Figure your 2007 tax using the taxes and
credits shown on your 2007 tax return. Use the same type of
taxes and credits as shown on lines 1, 2, and 3 of this Form
2210.

Complete lines 1 through 9 to figure your required annual
payment.

If you are filing a joint return for 2008, but you did not file a
joint return for 2007, add the tax shown on your 2007 return to

Specific Instructions

-2-

Page 3 of 6

Instructions for Form 2210

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• Any payment made on your balance due return for 2008. Use
the date you filed (or will file) your return or April 15, 2009,
whichever is earlier, as the payment date.

the tax shown on your spouse’s 2007 return and enter the total
on line 8 (both taxes figured as explained above).
If you filed a joint return for 2007 but you are not filing a joint
return for 2008, see Pub. 505, chapter 4, General Rule, to
figure your share of the 2007 tax to enter on line 8.

Table 1.

If you did not file a return for 2007 or your 2007 tax year was
less than 12 months, do not complete line 8. Instead, enter the
amount from line 5 on line 9. However, see Exceptions to the
Penalty on page 1.

Date

Estimated Tax Payments
Payments

Date

Payments

Part III—Short Method
If you can use the short method (see Form 2210, Part III, Can
You Use the Short Method?), complete lines 10 through 14 to
figure your total underpayment for the year, and lines 15
through 17 to figure the penalty.
In certain circumstances, the IRS will waive all or part of the
underpayment penalty. See Waiver of Penalty on page 2.
Entries on Form 2210. In column (a), enter the tax payments
you made by April 15, 2008; in column (b), enter payments you
made after April 15 through June 15, 2008; in column (c), enter
payments you made after June 15 through September 15,
2008; and in column (d), enter payments you made after
September 15, 2008, through January 15, 2009.

Line 12
If you are a household employer and made advance EIC
payments, include those payments as estimated tax payments
as of the date you paid the wages to your employees.

Part IV—Regular Method
Use the regular method if you are not eligible to use the short
method. See Form 2210, Part III, Must You Use the Regular
Method.

When figuring your payment dates and the amounts to enter
on line 19 of each column, apply the following rules.
• For withheld federal income tax and excess social security or
tier 1 railroad retirement tax (RRTA), you are considered to
have paid one-fourth of these amounts on each payment due
date unless you can show otherwise. You will find these
amounts on Form 1040, lines 62 and 65; Form 1040A, line 38
plus any excess social security and tier 1 RRTA included on
line 43; Form 1040NR, lines 58, 60, 65, 66a, 66b, 67a, and 67b;
Form 1040NR-EZ, line 18; and Form 1041, line 24e.

If you checked box C in Part II, complete Schedule AI before
Part IV.
Form 1040NR or 1040NR-EZ filers. If you are filing Form
1040NR or 1040NR-EZ and did not receive wages as an
employee subject to U.S. income tax withholding, the
instructions for completing Part IV are modified as follows.
1. Skip column (a).
2. On line 18, column (b), enter one-half of the amount on
line 9 of Part I (unless you are using the annualized income
installment method).
3. On line 19, column (b), enter the total tax payments made
through June 15, 2008, for the 2008 tax year. If you are treating
federal income tax (and excess social security or tier 1 railroad
retirement tax) as having been withheld evenly throughout the
year, you are considered to have paid one-third of these
amounts on each payment due date.
4. Skip all lines in column (b) that are shaded in column (a).

If you treat withholding as paid for estimated tax
purposes when it was actually withheld, you must check
CAUTION box D in Part II and complete and attach Form 2210 to
your return.
• Include all estimated tax payments you made, from Table 1
above, for each period. Include any overpayment from your
2007 tax return you elected to apply to your 2008 estimated tax.
If your 2007 return was fully paid by the due date, treat the
overpayment as a payment made on April 15, 2008.
• If an overpayment is generated on your 2007 return from a
payment made after the due date, treat the payment as made
on the date of payment. For example, you paid $500 due on
your 2007 return on July 1 and later amended the return and
were due a $400 refund which you elected to have applied to
your estimated taxes. The $400 overpayment would be treated
as paid on July 1.
• If you file your return and pay the tax due by February 2,
2009, include on line 19, column (d), the amount of tax you pay
with your tax return. In this case, you will not owe a penalty for
the payment due on January 15, 2009.
• If you paid estimated tax on June 16, 2008, it is considered
paid on June 15, 2008, to the extent it is applied to the second
required installment.

Section A—Figure Your Underpayment
Line 18
Enter on line 18, columns (a) through (d), the amount of your
required installment for the due date shown in each column
heading. For most taxpayers, this is one-fourth of the required
annual payment shown in Part I, line 9. However, it may be to
your benefit to figure your required installments by using the
annualized income installment method. See the Schedule AI
instructions beginning on page 5.

Line 19
Table 1 — List your estimated tax payments for 2008.
Before completing line 19, enter in Table 1 the payments you
made for 2008. Include the following payments.
• Any overpayment from your 2007 return applied to your 2008
estimated tax payments. Generally, treat the payment as made
on April 15, 2008.
• Estimated tax payments you made for the 2008 tax year, plus
any federal income tax and excess social security and tier 1
railroad retirement tax withheld.
• Any advance EIC payments you made as a household
employer. Include those payments as estimated tax payments
as of the date you paid the wages to your employees.

Example 1. You filed your 2007 tax return on June 1, 2008,
showing a $2,000 refund. You elected to have $1,000 of your
2007 overpayment applied to your 2008 estimated tax
payments. In 2008, you had $4,000 of federal income tax
withheld from wages. You also made $500 estimated tax
payments on 9/15/08 and 1/15/09. On line 19, column (a), enter
$2,000 ($1,000 withholding + $1,000 overpayment), $1,000
(withholding) in column (b), and $1,500 ($1,000 withholding +
$500 estimated tax payment) in columns (c) and (d).

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Instructions for Form 2210

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Line 25

listed, enter “76” (see Table 2 on this page), the number of days
until 6/30/08, the end of the first rate period.
Example 3. You had an underpayment of $5,000 on line
25, column (a), and your first payment shown in Table 1 was
made on 4/30/08 in the amount of $3,000. Enter “15” (number
of days from 4/15 to 4/30) on line 27, column (a).
More than one payment made. If more than one payment
was applied to fully pay the underpayment amount, enter the
number of days after the due date each payment was made.
Example 4. Assume the same facts as in Example 3. You
made a second payment of $5,000 on June 15. Since the
underpayment amount for column (a) was $5,000, after you
made the first $3,000 payment April 30, your new
underpayment amount would be $2,000. That was paid June
15, 61 days after the due date (4/15). Enter “15” and “61” on
line 27, column (a) (see illustration under Example 5 below).

If line 25 is zero for all payment periods, you do not owe a
penalty. But if you checked box C or D in Part II, you must file
Form 2210 with your return. If you checked box E, you must file
page 1 of Form 2210 with your return.
In certain circumstances, the IRS will waive all or part of the
underpayment penalty. See Waiver of Penalty on page 2.

Section B—Figure the Penalty
Before completing Section B, read the following instructions
through Rate Periods 3 and 4 on page 5.
Figure the penalty for each period by applying the
appropriate rate against each underpayment shown on line 25.
The penalty is figured for the number of days that the
underpayment remained unpaid.
Your payments are applied first to any underpayment
balance on an earlier installment. It does not matter if you
designate a payment for a later period. See Example 2 below.
The rates are established at various times throughout the
year. For the period covered by the 2008 Form 2210, there are
four rates in effect over four rate periods. If an underpayment
remained unpaid for more than one rate period, the penalty on
that underpayment will be figured using more than one
computation.
Use lines 27, 29, 31, and 33 to figure the number of days the
underpayment remained unpaid. Use lines 28, 30, 32, and 34 to
figure the actual penalty amount by applying the rate to the
underpayment for the number of days it remained unpaid.
Example 2. You had a $500 underpayment remaining after
your April 15 payment. The June 15 installment required a
payment of $1,200. On June 10, you made a payment of
$1,200 to cover the June 15 installment. However, $500 of this
payment is applied first to the April 15 installment. The penalty
for the April 15 installment is figured from April 15 to June 10
(56 days). The amount remaining to be applied to the June 15
installment is $700.
Total days per rate period. If an underpayment remained
unpaid for an entire rate period, use the chart below to
determine the number of days to enter in each column. The
chart is organized in the same format as Form 2210, Part IV,
Section B.
Table 2.

Line 28
Make the computation requested on line 28 and enter the
result. If more than one payment was required to fully satisfy
the underpayment amount, you will need to make a separate
computation for each payment. See the examples below and in
chapter 4 of Pub. 505.
Example 5. Assume the same facts as in Example 4. On
line 28, enter the penalty for each underpayment: $7.38 ($3,000
× (15 ÷ 366) × .06) and $20 ($2,000 × (61 ÷ 366) × .06). The
entries are illustrated below.
(a)
4/15/08
Days:
15

7.38
28

(a)

(b)

(c)

(d)

1 (line 27)

—

2 (line 29)

—

3 (line 31)

—

4 (line 33)

105

20.00

Since the underpayment balance in column (a) is fully
satisfied, next go to column (b). See Example 6 below.
Example 6. Assume the same facts as in Example 4 and
Example 5. Your June 15 payment of $5,000 would have fully
paid the second period underpayment amount (column b), but
because payments are applied first to an underpayment
balance in an earlier period, your second required installment is
underpaid by $2,000.
The next unapplied payment is $5,000 made on 9/15/08. On
line 27, column (b), enter “15” — the number of days from 6/15
to 6/30, the end of the first rate period. On line 28, enter $4.92
($2,000 × (15 ÷ 366) × .06).

Chart of Total Days

Rate Period

(a)
4/15/08
Days:
15

Days:
15

For example, if you have an underpayment on line 25,
column (a), but Table 1 shows no payments made by
4/15/08, you would enter “76” on line 27, column (a).

(b)
6/15/08

7.38
28

When you make a payment during a rate period, see

20.00

4.92
$

The remaining underpayment balance will be calculated in
the second rate period on lines 29 and 30, column (b). See
Example 7 on page 5.

TIP Table 4-1 (Pub. 505, chapter 4) for an easy way to
figure the number of days the payment is late.

Rate Period 1

Rate Period 2

First, complete Section B, column (a), lines 27 through 34, for
an underpayment shown on line 25, column (a). If there is also
an underpayment shown in column (b), (c), or (d) on line 25,
then complete lines 27 through 34 for those columns in a similar
manner.

If an underpayment balance remains after applying any
payments made during the first rate period, figure the penalty
attributable to that balance on lines 29 and 30. Generally, use
the same steps as explained under the instructions for Rate
Period 1, but use the dates and interest rate shown on lines 29
and 30.

Line 27

Line 29

If there was only one payment made between 4/15/08 and
6/30/08, enter on line 27, column (a), the number of days from
4/15/08 to the date that payment was made. If no payments are

Enter on line 29, column (a), the number of days from 6/30/08
to the date of the first unapplied payment made during the

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Instructions for Form 2210

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second rate period. If there are no unapplied payments, enter
“92” (see Table 2 earlier).

4. Enter on line 22, column (b), one-half of the amount from
Form 2210, Part I, line 9. In columns (c) and (d), enter
one-fourth of that amount.
5. Skip column (b), lines 20 and 23.

Line 30
Figure line 30 in the same manner as line 28.
Example 7. Assume the same facts as in Example 6. The
$2,000 underpayment for column (b) was paid in full when the
third estimated tax payment was made on 9/15/08.

Part I—Annualized Income Installments
To figure the amount of each required installment, Schedule AI
selects the smaller of the annualized income installment or the
regular installment (that has been increased by the amount
saved by using the annualized income installment method in
figuring any earlier installments).

Enter “77” on line 29, column (b) — the number of days from
6/30/08 to 9/15/08. In the same column, enter $21.04 on line 30
($2,000 × (77 ÷ 366) × .05). See illustration below.

(a)
6/30/08
Days:

(b)
6/30/08

Line 1
For each period (column), figure your total income minus your
adjustments to income. Include your share of partnership or S
corporation income or loss items for the period.

Days:
77

If you are self-employed, be sure to take into account the
deduction for one-half of your self-employment tax. To figure
this amount for each period, complete Schedule AI, Part II, and
divide the amount in columns (a) through (d) on line 34 by 8,
4.8, 3, and 2, respectively.

21.04
30

Rate Periods 3 and 4
If an underpayment balance remains for these rate periods,
calculate the penalty using the same steps as explained under
the instructions for Rate Period 1, but use the dates and interest
rate on lines 31 and 32 for rate period 3 and lines 33 and 34 for
rate period 4.

Line 2
Estates and trusts, do not use the amounts shown in columns
(a) through (d). Instead, use 6, 3, 1.71429, and 1.09091,
respectively, as the annualization amounts.

Schedule AI—Annualized Income
Installment Method

Line 6

If your income varied during the year because, for example, you
operated your business on a seasonal basis, you may be able
to lower or eliminate the amount of one or more required
installments by using the annualized income installment
method. Use Schedule AI to figure the required installments to
enter on Form 2210, Part IV, line 18.

Itemized Deductions Worksheet —Line 6

If you itemized your deductions, multiply line 4 of each column
by line 5 and enter the result on line 6. But if line 3 is more than
$159,950 ($79,975 if married filing separately), use the
worksheet below to figure the amount to enter on line 6.
Complete the worksheet for each period, as necessary.

If you use Schedule AI for any payment due date, you
must use it for all payment due dates.

CAUTION

To use the annualized income installment method to figure
the penalty, you must do all of the following.
1. Complete Schedule AI, Part I (and Part II, if necessary).
Enter the amounts from Schedule AI, Part I, line 25, columns
(a) through (d), in the corresponding columns of Form 2210,
Part IV, line 18.
2. Complete Part IV to figure the penalty.
3. Check box C in Part II.
4. Attach Form 2210, Parts I, II, IV, and Schedule AI to your
return.

1. Enter line 4 of Schedule AI . . . . . . . . . . . . . .

2. Enter the amount included in line 1 for medical
and dental expenses, investment interest,
casualty or theft losses, and gambling losses
(after applying the same limits used in line 1) . .

3. Subtract line 2 from line 1 . . . . . . . . . . . . . . .

4. Enter line 5 of Schedule AI . . . . . . . . . . . . . .

5. Multiply line 1 by line 4 . . . . . . . . . . . . . . . . .
Note. If line 3 is zero, your deduction is not
limited. Stop here and enter line 5 above on
Schedule AI, line 6.

6. Multiply line 3 by line 4 . . . . . . . . . . . . . . . . .

Additional information. See Pub. 505, chapter 4, for more
details about the annualized income installment method and a
completed example. Estates and trusts, see Notice 87-32.

7. Multiply line 6 by 80% (.80) . . . . . . . . . . . . . .

8. Enter line 3 of Schedule AI . . . . . . . . . . . . . .

Individuals filing Form 1040NR or 1040NR-EZ. If you are
filing Form 1040NR or 1040NR-EZ and you did not receive
wages as an employee subject to U.S. income tax withholding,
follow these modified instructions for Schedule AI.
1. Skip column (a).
2. Enter on line 1 your income for the period that is
effectively connected with a U.S. trade or business.
3. Increase the amount on line 17 by the amount
determined by multiplying your income for the period that is not
effectively connected with a U.S. trade or business by the
following.
• In column (b), 72%.
• In column (c), 45%.
• In column (d), 30%.
However, if you can use a treaty rate lower than 30%, use
the percentages determined by multiplying your treaty rate by
2.4, 1.5, and 1, respectively.

9. Enter $159,950 ($79,975 if married filing
separately) . . . . . . . . . . . . . . . . . . . . . . . . .
10. Subtract line 9 from line 8 . . . . . . . . . . . . . . .
Note. If line 10 is zero or less, your deduction is
not limited. Stop here and enter line 5 above on
Schedule AI, line 6.

-5-

9.
10.

11. Multiply line 10 by 3% (.03). Enter the result as
a decimal . . . . . . . . . . . . . . . . . . . . . . . . . .

11.

12. Enter the smaller of line 7 or line 11 . . . . . . . .

12.

13. Divide line 12 by 1.5 . . . . . . . . . . . . . . . . . .

13.

14. Subtract line 13 from line 12 . . . . . . . . . . . . .

14.

15. Subtract line 14 from line 5. Enter the result
here and in the appropriate columns of
Schedule AI, line 6 . . . . . . . . . . . . . . . . . . .

15.

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Instructions for Form 2210

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Deduction for Exemptions Worksheet —Line 10
1. Multiply $3,500 by the number of exemptions you
claimed . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Enter line 3 of Schedule AI . . . . . . . . . . . . . .

To figure the AMT, individuals use Form 6251, Alternative
Minimum Tax — Individuals; estates and trusts use Schedule I
(Form 1041), Alternative Minimum Tax — Estates and Trusts.
Figure alternative minimum taxable income based on your
income and deductions during the periods shown in the column
headings. Multiply this amount by the annualization amounts
shown for each column on Schedule AI, line 2, before
subtracting the AMT exemption.

3. Enter the amount shown below for your filing status
Single — $159,950
Married filing jointly or qualifying
widow(er) — $239,950
Married filing separately — $119,975
Head of household — $199,950 . . . . . . . . . .

4. Subtract line 3 from line 2 . . . . . . . . . . . . . . .

Line 16
For each column, enter the credits you are entitled to because
of events that occurred during the months shown in the column
headings. These are the credits you used to arrive at the
amounts on lines 1 and 3 of Part I, Required Annual Payment.
When figuring your credits, annualize any item of income or
deduction used to figure each credit. For example, if your
earned income (and AGI) for the first period (column (a)) is
$8,000 and you qualify for the earned income credit (EIC), use
your annualized earned income ($32,000) to figure your EIC for
column (a). See the example under Completing Schedule AI, in
chapter 4 of Pub. 505.

5. Is line 4 more than $122,500 (more than $61,250
if married filing separately)? . . . . . . . . . . . . . .
Yes. Multiply $2,333 by the number of
exemptions you claimed and enter the result
here and on Schedule AI, line 10. Do not
complete the rest of this worksheet.

Part II—Annualized Self-Employment Tax

No. Divide line 4 by $2,500 ($1,250 if married
filing separately). If the result is not a whole
number, increase it to the next whole number
(for example, increase 0.0004 to 1) . . . . . . .

6. Multiply line 5 by 2% (.02). Enter the result as a
decimal . . . . . . . . . . . . . . . . . . . . . . . . . . .

7. Multiply line 1 by line 6 . . . . . . . . . . . . . . . . .

8. Divide line 7 by 3.0 . . . . . . . . . . . . . . . . . . . .

9. Subtract line 8 from line 1. Enter the result here
and on Schedule AI, line 10 . . . . . . . . . . . . . .

If you had net earnings from self-employment during any
period, complete Part II for that period to figure your annualized
self-employment tax.
If you are married and filing a joint return and both you and
your spouse had net earnings from self-employment, complete
a separate Part II for each spouse. Enter on line 13 the
combined amounts from line 34 of both Parts II.

Line 26
To figure your net earnings from self-employment on line 26,
multiply your net profit from all trades or businesses for each
period by 92.35% (.9235).

Line 7

Paperwork Reduction Act Notice. We ask for the information
on this form to carry out the Internal Revenue laws of the United
States. You are required to give us the information. We need it
to ensure that you are complying with these laws and to allow
us to figure and collect the right amount of tax.
You are not required to provide the information requested on
a form that is subject to the Paperwork Reduction Act unless
the form displays a valid OMB control number. Books or
records relating to a form or its instructions must be retained as
long as their contents may become material in the
administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by
section 6103.
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated burden
for individual taxpayers filing this form is approved under OMB
control number 1545-0074 and is included in the estimates
shown in the instructions for their individual income tax return.
The estimated burden for all other taxpayers who file this form
is shown below.

If you are an Indian student or business apprentice, enter your
standard deduction from Form 1040NR, line 37; or Form
1040NR-EZ, line 11.

Line 10
For each column, multiply $3,500 by your total exemptions. But
if line 3 is more than the amount shown below for your filing
status, use the worksheet above to figure the amount to enter
on line 10. Complete the worksheet for each period, as
necessary.
Single . . . . . . . . . . . . . . . . . . . . . . . . . .
Married filing jointly or qualifying widow(er)
Married filing separately . . . . . . . . . . . . .
Head of household . . . . . . . . . . . . . . . . .

.
.
.
.

$159,950
$239,950
$119,975
$199,950

Estates, trusts, and Form 1040NR or 1040NR-EZ filers.
Use the exemption amount shown on your return unless you
meet the AGI requirements for reducing your exemption. In that
case, use the information and worksheet for Form 1041 or
1040NR, as appropriate, to determine the exemption based on
annualized income (line 3), modified as required.

Line 12
To compute the tax, use the Tax Table, Tax Computation
Worksheet, Qualified Dividends and Capital Gain Tax
Worksheet, Schedule D Tax Worksheet, Foreign Earned
Income Tax Worksheet, Schedule J, or Form 8615. See the
instructions for your tax return for the applicable Tax Table or
worksheet.

Line 14
Enter all of the other taxes you owed because of events that
occurred during the months shown in the column headings.
Include the same taxes used to figure Form 2210, Part I, line 2
(except self-employment tax), plus the tax from Form 4972, Tax
on Lump-Sum Distributions; Form 8814, Parents’ Election To
Report Child’s Interest and Dividends; and any alternative
minimum tax (AMT).

Short
Method

Regular
Method

Recordkeeping . . . . . . . . . . . . . . . . . . . .

13 min.

Learning about the law or the form . . . . . .

15 min.

34 min.

Preparing the form . . . . . . . . . . . . . . . . . .

35 min. 4 hr., 1 min.

Copying, assembling, and sending the form
to the IRS . . . . . . . . . . . . . . . . . . . . . . . .

16 min.

41 min.

If you have comments concerning the accuracy of these time
estimates or suggestions for making this form simpler, we
would be happy to hear from you. See the instructions for the
tax return with which this form is filed.

-6-

File Type	application/pdf
File Title	2008 Instruction 2210
Subject	Instructions for Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts
Author	W:CAR:MP:FP
File Modified	2009-02-17
File Created	2009-01-05