U.S. Individual Income Tax Return

Form 2210 Instructions

U.S. Individual Income Tax Return

OMB: 1545-0074

⚠️ Notice: This form may be outdated. More recent filings and information on OMB 1545-0074 can be found here:

Document [pdf]

Download: pdf | pdf

Userid: ________

PAGER/SGML
Page 1 of 7

Fileid:

DTD INSTR04

Leadpct: 0%

Pt. size: 9

D:\Users\03nbb\documents\epicfiles\2009 Epic files\I2210 11-24.sgm

Instructions for Form 2210

❏

Draft

❏

Ok to Print

(Init. & date)

8:06 - 22-DEC-2009

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

2009

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

Who Must Pay the
Underpayment Penalty

What’s New
Decreased estimated tax payments for qualified individuals
with small businesses. For 2009, qualified individuals with
small businesses may be eligible to make smaller estimated tax
payments. If you qualify, your required annual payment for 2009
is the smaller of 90% of the tax shown on your 2008 tax return
or 90% of the tax shown on your 2009 tax return.
For more information, see Qualified individuals with small
businesses, on this page.

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
Use the flowchart at the top of page 1 of Form 2210 to see if
you must file this form.

CAUTION

complete Schedule AI and Part IV. Enter the penalty on line 31
and on the “Estimated tax penalty” line on your tax return.

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

The IRS Will Figure the Penalty for You
If you did not check box B, C, or D in Part II, you do not need to
figure the penalty or file Form 2210. The IRS will figure any
penalty for underpayment of estimated tax and send you a bill.
If you file your return by April 15, 2010, no interest will be
charged on the 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 usual. Leave the penalty line on your return blank; do
not file Form 2210.

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
“Estimated tax 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, complete Part I, check the
box(es) that applies in Part II, and complete Part III. Enter the
penalty on line 17 and on the “Estimated tax penalty” line on
your tax return.
• If you use the regular method, complete Part I, check the
box(es) that applies in Part II, and complete Part IV. Enter the
penalty on line 31 and on the “Estimated tax penalty” line on
your tax return.
• If you use the annualized income installment method,
complete Part I, check the box(es) that applies in Part II, and

In general, you may owe the penalty for 2009 if the total of your
withholding and timely estimated tax payments did not equal at
least the smaller of:
1. 90% of your 2009 tax, or
2. 100% of your 2008 tax. (Your 2008 tax return must cover
a 12-month period.)
Special rules for certain individuals. Different percentages
are used for farmers and fishermen, certain higher income
taxpayers, and qualified individuals with small businesses.
Farmers and fishermen. If at least two-thirds of your gross
income for 2008 or 2009 is from farming and fishing, substitute
662/3% for 90% in (1) above. See Farmers and fishermen on
page 2 to see if you qualify.
Higher income taxpayers. If your adjusted gross income
(AGI) for 2008 was more than $150,000 ($75,000 if your 2009
filing status is married filing separately), substitute 110% for
100% in (2) above.
Qualified individuals with small businesses. If you meet
the qualifications listed below and checked box “F” in Part II,
substitute 90% for 100% in (2) above.
• Your AGI in 2008 was less than $500,000 ($250,000 if
married filing separately in 2009).
• More than 50% of your gross income in 2008 was from a
small business, which is defined as a trade or business in which
you were an owner during the calendar year 2008 and that
averaged less than 500 employees for 2008.
Penalty figured separately for each required payment. 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 of the following
applies.
• You had no tax liability for 2008, 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 2008 tax return was (or
would have been had you been required to file) for a full 12
months.
• The total tax shown on your 2009 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.

Cat. No. 63610I

Page 2 of 7

Instructions for Form 2210

8:06 - 22-DEC-2009

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

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.

An individual or a fiduciary for an estate or trust not in a
covered disaster area but whose books, records, or tax
professionals’ offices are in a covered area is 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 www.irs.gov. Click on the “Individuals” tab, select
“Tax Relief in Disaster Situations,” and then the federally
declared disaster that affected you.

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
2008 or 2009.
2. You filed Form 1040 or 1041 and paid the entire tax due
by March 1, 2010.

Additional Information
See Pub. 505, chapter 4, for more details and examples of
filled-in Forms 2210.

See chapter 2 of Pub. 505, Tax Withholding and Estimated
Tax, for the definition of gross income from farming and fishing.

For guidance on figuring estimated taxes for trusts and
certain estates, see Notice 87-32, 1987-1 C.B. 477.

If you meet test 1 but not test 2, use Form 2210-F,
Underpayment of Estimated Tax by Farmers and Fishermen, to
see if you owe a penalty. If you do not meet test 1, use Form
2210.

Specific Instructions

Waiver of Penalty

Part I—Required Annual Payment
Complete lines 1 through 9 to figure your required annual
payment.

If you have an underpayment, all or part of the penalty for that
underpayment will be waived if the IRS determines that:
• In 2008 or 2009, 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. For federally declared disaster areas, see the
separate information below.
• The underpayment was caused by adjustments made to
income tax withholding tables that took effect in spring 2009.

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.
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

To request any of the above waivers, 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 30 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 31 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 31 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 below),
or other unusual circumstance, attach documentation such as
copies of police and insurance company reports.

Enter the amount from Form 1040, line 55; 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.
IF you file...

THEN include on line 2 the amounts on...

1040

Lines 56, 58 (additional tax on distributions only), 59,*
and any write-ins on line 60 with the exception of:
• Uncollected social security and Medicare tax or
RRTA tax on tips or group-term life insurance
(identified as “UT”),
• Tax on excess golden parachute payments
(identified as “EPP”),
• Excise tax on insider stock compensation from an
expatriated corporation (identified as “ISC”),
• Look-back interest due under section 167(g)
(identified as “From Form 8866”),
• Look-back interest due under section 460(b)
(identified as “From Form 8697”),
• Recapture of federal mortgage subsidy (identified
as “FMSR”), and
• Recapture of COBRA health insurance premium
assistance (identified as “COBRA”).

1040A

Line 36

The IRS will review the information you provide and decide
whether to grant your request for a waiver.
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, the IRS
will send you a bill.

*If you are a household employer, include your household employment taxes
(prior to subtracting advance EIC payments made to your employee(s)) on
line 2 only if you had federal income tax withheld from your income and
would be required to make estimated tax payments even if the household
employment taxes were not included.

-2-

Instructions for Form 2210

Page 3 of 7

Instructions for Form 2210

8:06 - 22-DEC-2009

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

IF you file...

THEN include on line 2 the amounts on...

Line 12

1040NR

Lines 52, 54 (additional tax on distributions only), 55,
56,* and any write-ins on line 57 with the exception of:
• Uncollected social security and Medicare tax or
RRTA tax on tips or group-term life insurance
(identified as “UT”),
• Tax on excess golden parachute payments
(identified as “EPP”),
• Excise tax on insider stock compensation from an
expatriated corporation (identified as “ISC”),
• Look-back interest due under section 167(g)
(identified as “From Form 8866”),
• Look-back interest due under section 460(b)
(identified as “From Form 8697”),
• Recapture of federal mortgage subsidy (identified
as “FMSR”), and
• Recapture of COBRA health insurance premium
assistance (identified as “COBRA”).

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.

1041

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.
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, 2009, for the 2009 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).

Schedule G, lines 5, 6,* and any write-ins on line 7
with the exception of:
• Look-back interest due under section 167(g)
(identified as “From Form 8866”), and
• Look-back interest due under section 460(b)
(identified as “From Form 8697”).

Section A—Figure Your Underpayment
Line 18

If you file Form 1040NR-EZ, you will not have an entry on
line 2.

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 6
Enter the taxes withheld from Form 1040, lines 61 and 69; Form
1040A, line 38, plus any excess social security and tier 1
railroad retirement tax (RRTA) included on line 44; Form
1040NR, lines 58a, 58b, 58c, 58d, and 63; or Form
1040NR-EZ, line 18. For an estate or trust, enter the amount
from Form 1041, line 24e.

Line 19
Table 1 — List your estimated tax payments for 2009.
Before completing line 19, enter in Table 1 the payments you
made for 2009. Include the following payments.
• Any overpayment from your 2008 return applied to your 2009
estimated tax payments. Generally, treat the payment as made
on April 15, 2009.
• Estimated tax payments you made for the 2009 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.
• Any payment made on your balance due return for 2009. Use
the date you filed (or will file) your return or April 15, 2010,
whichever is earlier, as the payment date.

Line 8
Figure your 2008 tax using the taxes and credits shown on your
2008 tax return. Use the same type of taxes and credits as
shown on lines 1, 2, and 3 of this Form 2210.
Enter the 2008 tax you figured above unless you meet one
of the following exceptions.
• If the adjusted gross income shown on your 2008 return is
more than $150,000 ($75,000 if married filing separately for
2009), enter 110% of that amount.
• If you are a qualified individual with a small business and you
checked box F in Part II, enter 90% of that amount.
If you are filing a joint return for 2009, but you did not file a
joint return for 2008, add the tax shown on your 2008 return to
the tax shown on your spouse’s 2008 return and enter the total
on line 8 (both taxes figured as explained above).
If you filed a joint return for 2008 but you are not filing a joint
return for 2009, see Pub. 505, chapter 4, General Rule, to
figure your share of the 2008 tax to enter on line 8.
If you did not file a return for 2008 or your 2008 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.

Table 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.
Instructions for Form 2210

Entries on Form 2210. In column (a), enter the tax payments
you made by April 15, 2009; in column (b), enter payments you
made after April 15 through June 15, 2009; in column (c), enter

-3-

Page 4 of 7

Instructions for Form 2210

8:06 - 22-DEC-2009

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

payments you made after June 15 through September 15,
2009; and in column (d), enter payments you made after
September 15, 2009, through January 15, 2010.

Use line 29 to figure the number of days the underpayment
remained unpaid. Use line 30 to figure the actual penalty
amount by applying the rate to the underpayment for the
number of days it remained unpaid.

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 61 and 69; Form 1040A, line 38,
plus any excess social security and tier 1 RRTA included on
line 44; Form 1040NR, lines 58a, 58b, 58c, 58d, and 63; Form
1040NR-EZ, line 18; and Form 1041, line 24e.

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 the 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.

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 for each period.
Include any overpayment from your 2008 tax return you elected
to apply to your 2009 estimated tax. If your 2008 return was
fully paid by the due date, treat the overpayment as a payment
made on April 15, 2009.
• If an overpayment is generated on your 2008 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 2008 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 1,
2010, 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, 2010.

Table 2.

Chart of Total Days

Rate Period

(a)

(b)

(c)

(d)

April 16, 2009 –
April 15, 2010

365

304

212

For example, if you have an underpayment on line 25,
column (a), but Table 1 shows no payments made by
4/15/10, you would enter “365” on line 29, column (a).
If you make a payment during a rate period, see Table

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

Example 1. You filed your 2008 tax return on June 1, 2009,
showing a $2,000 refund. You elected to have $1,000 of your
2008 overpayment applied to your 2009 estimated tax
payments. In 2009, you had $4,000 of federal income tax
withheld from wages. You also made $500 estimated tax
payments on 9/15/09 and 1/15/10. 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).

First, complete Section B, column (a), lines 29 and 30, 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 29 and 30 for those columns in a similar manner.

Line 29
If there was only one payment made between 4/15/09 and
4/15/10, enter on line 29, column (a), the number of days from
4/15/09 to the date that payment was made. If no payments are
listed, enter “365”.

Line 25
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.

Example 3. You had an underpayment of $1,000 on line
25, column (a), and your only estimated tax payment was
$1,500 made on 9/15. Enter “153” (number of days from 4/15 to
9/15) on line 29, column (a).

In certain circumstances, the IRS will waive all or part of the
underpayment penalty. See Waiver of Penalty on page 2.

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.

Section B—Figure the Penalty
Before completing Section B, read the following instructions
through Example 6 on page 5.

Example 4. Your required installment for each payment
due date is $5,000. Your Table 1 shows the following estimated
tax payments.

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.

Date
4/30/09
6/15/09
9/15/09
1/15/10

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 on this
page.

Payments
$2,000
$3,000
$4,000
$4,000

You had an underpayment of $5,000 on line 25, column (a).
After applying your first estimated payment, $2,000, paid April
30, your new underpayment amount would be $3,000. That was
paid June 15. Enter “15” (number of days from 4/15 to 4/30)
and “61” (number of days from 4/15 to 6/15) on line 29, column
(a) (see illustration under Example 5 on page 5).

The rates are established at various times throughout the
year. For the period covered by the 2009 Form 2210, there is
only one rate in effect. Since there is only one rate period, lines
27 and 28 were removed from the 2009 Form 2210.

-4-

Instructions for Form 2210

Page 5 of 7

Instructions for Form 2210

8:06 - 22-DEC-2009

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

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.

Line 30
Make the computation requested on line 30 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 30, enter the penalty for each underpayment: “3.29”
($2,000 × (15 ÷ 365) × .04) and “$20.05” ($3,000 × (61 ÷ 365) ×
.04). The entries are illustrated below.

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.
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.
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.

(a)
4/15/09
Days:
15
61

29
3.29
30

20.05

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. Because payments are applied first to an
underpayment balance in an earlier period, your June 15
payment of $3,000 was fully applied to the underpayment
amount in column (a). Therefore, your second required
installment of $5,000 is fully underpaid.
The next unapplied payment is $4,000 made on 9/15/09. On
line 29, column (b), enter “92” the number of days from 6/15 to
9/15 when the next unapplied payment was made. Also enter
“214,” the number of days from 6/15 until the 1/15/10 estimated
tax payment was made. $1,000 of the $4,000 unapplied
payment was applied to the June 15 underpayment. On line 30,
column (b), enter “$40.33” ($4,000 × (92 ÷ 365) × .04) and
“$23.45” ($1,000 × (214 ÷ 365) × .04).

(a)
4/15/09
Days:
15

Days:
92

214

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.

40.33

3.29
30

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).

(b)
6/15/09

Part I—Annualized Income Installments

20.05

23.45

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.

Figure the remaining underpayment for column (c) and
column (d) in the same manner.

Schedule AI—Annualized Income
Installment Method

Line 2

If your income varied during the year because, for example, you
operated your business on a seasonal basis or had a large
capital gain late in the year, 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.

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.

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
$166,800 ($83,400 if married filing separately), use the Itemized
Deductions Worksheet — Line 6 on page 6 to figure the amount
to enter on line 6.

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

CAUTION

Instructions for Form 2210

-5-

Page 6 of 7

Instructions for Form 2210

8:06 - 22-DEC-2009

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

Itemized Deductions Worksheet —Line 6

Deduction for Exemptions Worksheet —Line 10

Complete this worksheet for each period, as necessary.

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

2. Enter the amount included in line 1 above 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 for this period. Stop here and enter line
5 above on Schedule AI, line 6.

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

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

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

9. Enter $166,800 ($83,400 if married filing
separately) . . . . . . . . . . . . . . . . . . . . . . . . .

1. Multiply $3,650 by the number of exemptions you
claimed . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

3. Enter the amount shown below for your filing status
Single — $166,800
Married filing jointly or qualifying
widow(er) — $250,200
Married filing separately — $125,100
Head of household — $208,500 . . . . . . . . . .

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

5. Is line 4 more than $122,500 (more than $61,250
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.

Yes. Multiply $2,433 by the number of
exemptions you claimed and enter the result
here and in the appropriate column of
Schedule AI, line 10. Do not complete the
rest of this worksheet.

10.

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 higher whole
number (for example, increase 0.0004 to 1)

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

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

11.

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

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

12.

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

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

13.

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

14.

9. Subtract line 8 from line 1. Enter the result here
and in the appropriate column of Schedule AI,
line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15. Total itemized deductions. Subtract line 14
from line 5. Enter the result here and in the
appropriate column of Schedule AI, line 6 . . . .

15.

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).

Line 7
If you are a resident of India and a student or business
apprentice, enter your standard deduction from Form 1040NR,
line 37; or Form 1040NR-EZ, line 11.

Line 10

To figure the AMT, Form 1040 filers use Form 6251,
Alternative Minimum Tax — Individuals; Form 1040A filers use
the Alternative Minimum Tax Worksheet in the Form 1040A
instructions; and 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.

For each column, multiply $3,650 by your total exemptions. But
if line 3 is more than the amount shown below for your filing
status, use the Deduction for Exemptions Worksheet — Line 10
to figure the amount to enter on line 10.
Single . . . . . . . . . . . . . . . . . . . . . . . . . .
Married filing jointly or qualifying widow(er)
Married filing separately . . . . . . . . . . . . .
Head of household . . . . . . . . . . . . . . . . .

.
.
.
.

$166,800
$250,200
$125,100
$208,500

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 (Schedule AI, line 3), modified as required.

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.

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, as
appropriate. See the instructions for your tax return for the
applicable Tax Table or worksheet.

Part II—Annualized Self-Employment Tax

Note. Chapter 4 of Pub. 505 contains a Qualified Dividends
and Capital Gain Tax Worksheet and a Foreign Earned Income
Tax Worksheet designed for use with Schedule AI.

If you had net earnings from self-employment during any
period, complete Part II for that period to figure your annualized
self-employment tax.

-6-

Instructions for Form 2210

Page 7 of 7

Instructions for Form 2210

8:06 - 22-DEC-2009

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

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 of Schedule
AI, Part I, the combined amounts from line 34 of both Parts II.

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.

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 28
If you filed Form 4137 or Form 8919, use the following
instructions to figure the additional amount to include in the
appropriate columns of line 28.
• Form 4137: Include the actual unreported tips for the period
subject to social security tax. This will be the amount on Form
4137, line 10, when the form is completed for a specific period.
• Form 8919: Include the actual wages for the period from
which the social security tax was not withheld. This will be the
amount on Form 8919, line 10, when the form is completed for
a specific period.
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

Instructions for Form 2210

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.

-7-

File Type	application/pdf
File Title	2009 Instruction 2210
Subject	Instructions for Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts
Author	W:CAR:MP:FP
File Modified	2009-12-22
File Created	2009-12-22