Form 2210, Underpayment of Estimated Tax by Individuals, Estate, and Trusts (Long form - Parts 1, 2, 4, and A1))

2013

Instructions for Form 2210

Department of the Treasury
Internal Revenue Service

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

Section references are to the Internal Revenue Code unless
otherwise noted.

General Instructions
Future developments. For the latest information about
developments related to Form 2210 and its instructions, such as
legislation enacted after they were published, go to www.irs.gov/
form2210.

What's New

Change in tax rates. For the 2013 tax year, the highest tax rate
on individuals is 39.6%.
Additional Medicare Tax. Beginning in 2013, a 0.9%
Additional Medicare Tax applies to Medicare wages, railroad
retirement act (RRTA) compensation, and self-employment
income over a threshold amount based on your filing status.
Net Investment Income Tax. Beginning in 2013, you may be
subject to Net Investment Income Tax (NIIT). NIIT is a 3.8%
(.038) tax on the lesser of net investment income or the excess
of your modified adjusted gross income over a threshold
amount.
Medical and dental expenses. Beginning in 2013, you can
deduct only the part of your medical and dental expenses that
exceed 10% of your adjusted gross income (7.5% if either you or
spouse was born before January 2, 1949).
Personal exemption amount increased for certain taxpay­
ers. For tax years beginning in 2013, the personal exemption
amount is increased to $3,900. There is a phaseout of the
exemption, the amount of which is determined by the taxpayer's
filing status and adjusted gross income.
Limit on itemized deductions. Beginning in 2013, itemized
deductions for taxpayers with adjusted gross incomes above
$150,000 may be reduced.

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. Even 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.

!

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

CAUTION

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, 2014, no interest will be charged
on the penalty if you pay the penalty by the date shown on the
bill.

Jan 06, 2014

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, complete Part IV, Section A, and
the Penalty Worksheet, later. Enter the penalty on line 27 of the
form, 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,
complete Schedule AI, complete Part IV, Section A, and the
Penalty Worksheet, later. Enter the penalty on line 27 of the
form, and on the “Estimated tax penalty” line on your tax return.

Who Must Pay the
Underpayment Penalty

In general, you may owe the penalty for 2013 if the total of your
withholding and timely estimated tax payments did not equal at
least the smaller of:
1. 90% of your 2013 tax, or
2. 100% of your 2012 tax. (Your 2012 tax return must cover
a 12-month period.)

Special rules for certain individuals. Different percentages
are used for farmers and fishermen, and certain higher income
taxpayers.
Farmers and fishermen. If at least two-thirds of your gross
income for 2012 or 2013 is from farming and fishing, substitute
662 3% for 90% in (1) above. See Farmers and fishermen, later, to
see if you qualify.
Higher income taxpayers. If your adjusted gross income
(AGI) for 2012 was more than $150,000 ($75,000 if your 2013
filing status is married filing separately), substitute 110% for
100% in (2) above.
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 later.
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

Cat. No. 63610I

2. 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.
3. 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.
4. If you are requesting a waiver due to a casualty, disaster
(other than a federally declared disaster as discussed next), or
other unusual circumstance, attach documentation such as
copies of police and insurance company reports.

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 2012, 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 2012 tax return was (or
would have been had you been required to file) for a full 12
months.
The total tax shown on your 2013 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
Part 1, lines 1 through 7.

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.
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 IRS.gov. Enter "disaster relief" in the search box,
then select “Tax Relief in Disaster Situations.” Select the
federally declared disaster that affected you.

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.
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 2012
or 2013.
2. You filed Form 1040 or 1041 and paid the entire tax due
by March 3, 2014.
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
see if you owe a penalty. If you do not meet test 1, use Form
2210.

Additional Information

See Pub. 505, chapter 4, for more details.
For guidance on figuring estimated taxes for trusts and
certain estates, see Notice 87-32, 1987-1 C.B. 477.

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 2012 or 2013, 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 Federally
declared disaster, later.
To request either of the above waivers, do the following.
1. Check box A or box B in Part II.
a. 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).
b. If you checked box B, complete Form 2210 through
line 16 (or if you use the regular method, line 26 plus the Penalty
Worksheet, later) without regard to the waiver. Enter the amount
you want waived in parentheses on the dotted line next to line 17
(line 27 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 27 for the regular method).

Specific Instructions
Part I—Required Annual Payment

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

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

Enter the amount from Form 1040, line 55; Form 1040A, line 35;
Form 1040NR, line 52; or Form 1040NR-EZ, line 15. For an
estate or trust, enter the amount from Form 1041, Schedule G,
line 3.

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Instructions for Form 2210

Line 2

If you file Form 1040NR-EZ or Form 1040A, you will not have
an entry on 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), 59a*,
59b, and if applicable, the Additional Medicare Tax
and/or Net Investment Income Tax, on line 60, and any
write-ins on line 60 with the exception of:

Line 3

Enter the total amount of the following refundable credits, if any,
that you claim on your tax return.
Earned income credit.
Additional child tax credit.
Refundable American opportunity credit (Form 8863, Line 8).
Credit for federal tax paid on fuels.
Health coverage tax credit.
Credit determined under section 1341(a)(5)(B).

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”),

To figure the amount of the section 1341 credit, see
Repayments in Pub. 525, Taxable and Nontaxable Income.

Excise tax on insider stock compensation from an
expatriated corporation (identified as “ISC”),

Line 6

Look-back interest due under section 167(g)
(identified as “From Form 8866”), and under section
460(b) (identified as “From Form 8697”),

Enter the taxes withheld from Form 1040, lines 62 and 69; Form
1040A, line 36, plus any excess social security and tier 1 railroad
retirement tax (RRTA) included on line 41; Form 1040NR, lines
61a, 61b, 61c, 61d, and 65; or Form 1040NR-EZ, lines 18a and
18b. For an estate or trust, enter the amount from Form 1041,
line 24e.

Recapture of federal mortgage subsidy (identified as
“FMSR”), and
Advance payments of the health coverage tax credit
when not eligible (identified as “HCTC”).
1040NR

Form 8689 filers. Also enter on this line the amount(s) from
Form 8689, lines 40 and 44, that you entered on line 72 of your
2013 Form 1040.

Lines 53, 54, 56 (additional tax on distributions only), 57,
58a*, 58b, and if applicable, Additional Medicare Tax on
line 59, and any write-ins on line 59 with the exception of:

Line 8

Uncollected social security and Medicare tax or RRTA
tax on tips or group-term life insurance (identified as
“UT”),

To figure your 2012 tax, first add the amounts listed in (1) later,
then subtract from that total amount the refundable credits listed
in (2) later that are shown on your 2012 tax return.

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”), and under section
460(b) (identified as “From Form 8697”),
Recapture of federal mortgage subsidy (identified as
“FMSR”), and
Advance payments of the health coverage tax credit
when not eligible (identified as “HCTC”).
1041

Schedule G, lines 4, 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”).

* If you are a household employer, include your household employment
taxes 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.

Instructions for Form 2210

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more than $150,000 ($75,000 if married filing separately), enter
110% of the amount of the tax computed earlier.

(1) Add the amounts listed in the chart below based on
which tax return you filed for 2012.
IF you filed
for 2012...

Add the following amounts shown on your 2012 tax
return.

1040

Lines 55, 56, 58 (additional tax on distributions only),
59a*, 59b, and any write-ins on line 60 with the exception
of:

If you are filing a joint return for 2013, but you did not file a
joint return for 2012, add your 2012 tax (as figured earlier) to
your spouse's 2012 tax (as figured earlier) and enter the total on
line 8.
If you filed a joint return for 2012 but you are not filing a joint
return for 2013, see Pub. 505, chapter 4, General Rule, to figure
your share of the 2012 tax to enter on line 8.

Uncollected social security and Medicare tax or RRTA
tax on tips or group-term life insurance (identified as
“UT”),

If you did not file a return for 2012 or your 2012 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, earlier.

Tax on excess golden parachute payments (identified
as “EPP”),
Excise tax on insider stock compensation from an
expatriated corporation (identified as “ISC”),

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.

Look-back interest due under section 167(g)
(identified as “From Form 8866”), and under section
460(b) (identified as “From Form 8697”),
Recapture of federal mortgage subsidy (identified as
“FMSR”), and

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

Advance payments of the health coverage tax credit
when not eligible (identified as “HCTC”).
1040A

Line 35

1040NR

Lines 52, 53, 54, 56 (additional tax on distributions only),
57, 58a*, 58b, and any write-ins on line 59 with the
exception of:

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.

Uncollected social security and Medicare tax or RRTA
tax on tips or group-term life insurance (identified as
“UT”),

Form 1040NR or 1040NR­EZ 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, 2013, for the 2013 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).

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”), and under section
460(b) (identified as “From Form 8697”),
Recapture of federal mortgage subsidy (identified as
“FMSR”), and
Advance payments of the health coverage tax credit
when not eligible (identified as “HCTC”).
1040NR-EZ

Line 15

1041

Schedule G, lines 4, 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

Section A—Figure Your Underpayment
Line 18

Look-back interest due under section 460(b)
(identified as “From Form 8697”).

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 later.

*If you are a household employer, include your household employment taxes 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) Subtract refundable credits listed below:
Subtract the total of the following refundable credits, if any, that
you claimed on your 2012 tax return:
Your earned income credit.
Additional child tax credit.
Refundable part of the American opportunity credit (Form
8863, line 14).
Credit for federal tax paid on fuels.
Refundable credit for prior year minimum tax (Form 8801,
line 27).
Health coverage tax credit.
Credit determined under section 1341(a)(5)(B).

Line 19
Table 1—List your estimated tax payments for 2013.
Before completing line 19, enter in Table 1 the payments you
made for 2013. Include the following payments.
Any overpayment from your 2012 return applied to your 2013
estimated tax payments. Generally, treat the payment as made
on April 15, 2013.
Estimated tax payments you made for the 2013 tax year, plus
any federal income tax and excess social security and tier 1
railroad retirement tax withheld.
Any payment made on your balance due return for 2013. Use
the date you filed (or will file) your return or April 15, 2014,
whichever is earlier, as the payment date.

Enter the 2012 tax you figured above unless the AGI on your
2012 return is more than $150,000 ($75,000 if married filing
separately for 2013). If the AGI shown on your 2012 tax return is
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Instructions for Form 2210

Line 25

Table 1. Estimated Tax Payments
Date

Payment
amount

Date

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.

Payment
amount

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

Section B—Figure the Penalty

Use the Penalty Worksheet, later, to figure your penalty for each
period by applying the appropriate rate against each
underpayment shown in Section A, line 25. The penalty is
figured for the number of days that each underpayment remains
unpaid.
Your payments are applied first to any underpayment balance
on an earlier installment even if you designate a payment for a
later period. See Example 2.

Entries on Form 2210. Enter on line 19 the following tax
payments.
Column (a)—payments you made by April 15, 2013.
Column (b)—payments you made after April 15, 2013,
through June 15, 2013.
Column (c)—payments you made after June 15, 2013,
through September 15, 2013.
Column (d)—payments you made after September 15, 2013,
through January 15, 2014.
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 69; Form 1040A, line 36, plus any
excess social security and tier 1 RRTA included on line 41; Form
1040NR, lines 61a, 61b, 61c, 61d, and 65; Form 1040NR-EZ,
lines 18a and 18b; and Form 1041, line 24e.

Use lines 3, 6, 9, and 12 of the Penalty Worksheet to show
the number of days an underpayment remained unpaid. Use
lines 4, 7, 10, and 13 to figure the actual penalty amount by
applying the appropriate rate to an 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 the Penalty Worksheet.

Table 2. Chart of Total Days

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.

!

Rate Period

Include all estimated tax payments you made for each period.
Include any overpayment from your 2012 tax return you elected
to apply to your 2013 estimated tax. If your 2012 return was fully
paid by the due date, treat the overpayment as a payment made
on April 15, 2013. If you mail your estimated tax payments, use
the date of the U.S. postmark as the date of payment.
If an overpayment is generated on your 2012 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
2012 return on July 1, 2013, 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 January 31,
2014, 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, 2014.

(b)
6/15/13

(c)
9/15/13

(d)
1/15/14

4/16/13-6/30/13

76

7/1/13-9/30/13

92

15

—

—

92

15

—

10/1/13-12/31/13

92

92

92

—

1/1/14-4/15/14

105

105

105

90

For example, if you have an underpayment on line 25, column
(a), but Table 1 shows you have no payments until after
December 31, 2013, you would enter “76” on line 3, column (a),
of the Penalty Worksheet.

TIP

If you make a payment during a rate period, see
Table 4-1 (Pub. 505, chapter 4) for an easy way to figure
the number of days the payment is late.

Worksheet for Form 2210, Part IV,
Section B—Figure the Penalty

Example 1. You filed your 2012 tax return on June 1, 2013,
showing a $2,000 refund. You elected to have $1,000 of your
2012 overpayment applied to your 2013 estimated tax
payments. In 2013, you had $4,000 of federal income tax
withheld from wages. You also made $500 estimated tax
payments on 9/15/13 and 1/15/14. On line 19, column (a), enter
$2,000 ($1,000 withholding + $1,000 overpayment). In column
(b) enter $1,000 (withholding), and in columns (c) and (d), enter
$1,500 ($1,000 withholding + $500 estimated tax payment).

Instructions for Form 2210

(a)
4/15/13

Line 1b. If more than one payment was applied to fully pay the
underpayment amount in a column (line 1a), enter on line 1b the
date and amount applied up to the underpayment amount. If a
payment was more than the underpayment amount, enter the
excess in the next column with the same date.

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Keep for Your Records

Worksheet for Form 2210, Part IV, Section B—Figure the Penalty

Complete Rate Period 1 of each column before going to the next column; then go to Rate Periods 2, 3, and 4 in the
same manner. If multiple estimated tax payments are applied to the underpayment amount in a column of line 1a,
you will need to make more than one computation for that column.
Payment Due Dates
(a)
4/15/13

(b)
6/15/13

4/15/13

6/15/13

(c)
9/15/13

(d)
1/15/14

1a Enter your underpayment from Part IV, Section A, line 25 . . . . . . . . 1a
1b Date and amount of each payment applied to the underpayment in
the same column. Do not enter more than the underpayment amount
on line 1a for each column (see instructions).
Note. Your payments are applied in the order made first to any
underpayment balance in an earlier column until that underpayment
is fully paid.

1b

Rate Period 1: April 16, 2013—June 30, 2013
2

3

4

Computation starting dates for this period . . . . . . . . . . . . . . . . . . . 2
Days:

Days:

$

$

Number of days from the date on line 2 to the date the amount on
line 1a was paid or 6/30/13, whichever is earlier . . . . . . . . . . . . . . 3
Underpayment
on line 1a

×

Number of days
on line 3
365

× .03

4

Rate Period 2: July 1, 2013—September 30, 2013
5

6

7

Computation starting dates for this period . . . . . . . . . . . . . . . . . . . 5

6/30/13

6/30/13

9/15/13

Days:

Days:

Days:

$

$

$

Number of days from the date on line 5 to the date the amount on
line 1a was paid or 9/30/13, whichever is earlier . . . . . . . . . . . . . . 6
Underpayment
on line 1a

×

Number of days
on line 6
365

× .03

7

Rate Period 3: October 1, 2013—December 31, 2013
8

9

10

Computation starting dates for this period . . . . . . . . . . . . . . . . . . . 8

9/30/13

9/30/13

9/30/13

Days:

Days:

Days:

$

$

$

Number of days from the date on line 8 to the date the amount on
line 1a was paid or 12/31/13, whichever is earlier . . . . . . . . . . . . . 9
Underpayment
on line 1a

×

Number of days
on line 9
365

× .03

10

Rate Period 4: January 1, 2014—April 15, 2014
11 Computation starting dates for this period

. . . . . . . . . . . . . . . . . . 11

12/31/13

12/31/13

12/31/13

1/15/14

Days:

Days:

Days:

Days:

$

$

$

$

12 Number of days from the date on line 11 to the date the amount on
line 1a was paid or 4/15/14, whichever is earlier . . . . . . . . . . . . . . 12
13

Underpayment
on line 1a

×

Number of days
on line 12
365

× .03

13

14 Penalty. Add all amounts on lines 4, 7, 10, and 13 in all columns. Enter the total here and on line 27 of Part IV,
Section B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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▶ 14

$

Instructions for Form 2210

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. This includes
completing the Penalty Worksheet in the instructions.
3. Check box C in Part II.
4. Attach Form 2210, Parts I, II, IV, and Schedule AI to your
return.

.

.

Example 3. Your required installment for each payment due
date is $4,000. You made the following estimated tax payments.
Date
4/30/13
6/15/13
9/15/13
1/15/14

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

Line 1a, column (a), shows $4,000. You enter “4/30 $2,000” and
“6/15 $2,000” on line 1b, column (a). The remaining $1,000
($3,000 – $2,000) of the June 15 payment is entered on line 1b,
column (b), “6/15 $1,000.” Also enter “9/15 $3,000” on line 1b,
column (b), because $3,000 of the $4,000 September payment
must be used to fully pay the June underpayment. Continue in
this manner until all your payments are used.

Additional information. See Pub. 505, chapter 4, for more
details about the annualized income installment method. Estates
and trusts, see Notice 87-32.
Individuals filing Form 1040NR or 1040NR­EZ. 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. Beginning with column (b), 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) of lines 20 and 23.

Line 3. If more than one payment was applied to an
underpayment on line 1a, enter the number of days each
payment was late.
Example 4. Using the same facts as Example 3 above, enter
“15” (number of days from 4/15 to 4/30) and “61” (number of
days from 4/15 to 6/15) on line 3, column (a) (see illustration
under Example 5).
Line 4. Make the computation requested on line 4 and enter the
result. If more than one payment was required to fully satisfy an
underpayment amount, make a separate computation for each
payment. See Example 5 and the example in chapter 4 of Pub.
505.
Example 5. Assume the same facts as in Example 3. On
line 4, enter the penalty for each underpayment: “2.47” ($2,000 ×
(15 ÷ 365) × .03) and “$10.03” ($2,000 × (61 ÷ 365) × .03). The
entries are illustrated below.
(a)
4/15/13

2

Days:
15
3

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).

61

2.47
4

$

10.03

Column (a) is fully paid in the first rate period; therefore, lines
6, 7, 9, 10, 12 and 13 for column (a) would be blank. Continue
with the underpayment in columns (b), (c), and (d) in the same
manner.

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.

Note. If an underpayment balance remains for the remaining
rate periods, calculate the penalty using the same steps as
explained above, but use the dates and interest rates on lines 6
and 7 for rate period 2, lines 9 and 10 for rate period 3, and lines
12 and 13 for rate period 4.

If you are self-employed, be sure to take into account the
deductible part of your self-employment tax. For more
information on how to figure this amount for each period, see
Pub. 505, chapter 4.

Schedule AI—Annualized Income
Installment Method

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.

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.

!

Line 6
If you itemized deductions, multiply line 4 of each column by
line 5 and enter the result on line 6. But if line 3 is more than the
following amounts based on your filing status, use the Itemized
Deductions Worksheet – Line 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

To use the annualized income installment method to figure
the penalty, you must do all of the following.
Instructions for Form 2210

­7­

• Married filing jointly or Qualifying
widow(er) . . . . . . . . . . . . .
• Head of household . . . . . . . .
• Single . . . . . . . . . . . . . . .
• Married filing separately . . . . .

Deduction for Exemptions Worksheet – Line 10
. . .
. . .
. . .
. . .

$300,000

1. Multiply $3,900 by the number of exemptions you plan to
claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

$275,000
$250,000
$150,000

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

2.

3. Enter the amount shown below for your
filing status:

Itemized Deductions Worksheet – Line 6

$250,000 if single,
$300,000 if married filing jointly or
qualifying widow(er),

1. Enter line 4 of Schedule AI . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the total amount included on 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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

$150,000 if married filing
separately, or

3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Enter line 5 of Schedule AI . . . . . . . . . . . . . . . . . . . . . . 4.

$275,000 if head of
household . . . . . . . . . . . . . . . . . .

3.

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

4.

5. Is line 4 more than $122,500 (more than
$61,250 if married filing separately)?

5. Multiply line 1 by line 4 . . . . . . . . . . . . . . . . . . . . . . . . . 5.

Yes. Stop here. Enter -0- on lines 5
and 8. Do not complete the rest of this
worksheet.

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

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 highest whole number (for
example, increase 0.0004 to
1) . . . . . . . . . . . . . . . . . . . . . . . 5.

7. Multiply line 6 by 80% (.80) . . . . . . . 7.
8. Enter line 3 of Schedule AI . . . . . . . 8.
9. Enter:
$300,000 if married filing jointly or
qualifying widow(er),
$275,000 if head of household,

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

6.

$250,000 if single, or

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

7.

8. Deduction for exemptions. Subtract line 7 from line 1.
Enter the result here and in the appropriate column of
the Schedule AI, line 10 . . . . . . . . . . . . . . . . . . . . .

8.

$150,000 if married filing
separately . . . . . . . . . . . . . . . . . 9.
10. Subtract line 9 from line 8

. . . . . . . 10.

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

Estates, trusts, and Form 1040NR or 1040NR­EZ filers. Use
the exemption amount shown on your return.

Line 12

11. Multiply line 10 by 3% (.03) . . . . . . 11.
12. Enter the smaller of line 7 or line 11

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.

. . . . . . . . . . . . . . . 12.

13. Total itemized deductions. Subtract line 12 from line 5.
Enter the result here and in the appropriate column of
Schedule AI, line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.

Line 7

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 are a resident of India and a student or business
apprentice, enter your standard deduction from Form 1040NR,
line 38; or Form 1040NR-EZ, line 11.

Line 14

Line 10

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).

For each column, multiply $3,900 by your total exemptions. But if
line 3 is more than the following amount based on your filing
status, use the Deduction for Exemptions Worksheet – Line 10
to figure the amount to enter on line 10.
• Married filing jointly or Qualifying
widow(er) . . . . . . . . . . . . .
• Head of household . . . . . . . .
• Single . . . . . . . . . . . . . . .
• Married filing separately . . . . .

. . .
. . .
. . .
. . .

$300,000

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.

$275,000
$250,000
$150,000

­8­

Instructions for Form 2210

Line 16

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.

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).

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.

Part II—Annualized Self­Employment 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.

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 of Schedule AI,
Part I, the combined amounts from line 34 of each spouse's
Part II.
Any Additional Medicare Tax on self-employment income will
be computed in Part I.

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
Generally, 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).
However, if your Form W-2 showed church employee income
or you deducted Conservation Reserve Program payments on
your Schedule SE, use a separate Schedule SE as a worksheet
to calculate net earnings from self-employment for each period.
For this purpose, net earnings from self-employment is the
amount on line 4 of the Short Schedule SE or line 6 of the Long
Schedule SE.

Regular
Method

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

13 min.

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.

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.

Instructions for Form 2210

Short
Method

­9­