Instructions for IRS Form 2210 - Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2018

January 1, 2018 "Instructions For Irs Form 2210 - Underpayment Of Estimated Tax By Individuals, Estates, And Trusts" contain the latest filing requirements for the IRS-issued Form 2210. Download your copy of the instructions by clicking the link below.

IRS Form 2210 is a tax form issued by the United States Internal Revenue Service.

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2018
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
Additional medicare tax. A 0.9% Additional Medicare Tax applies
otherwise noted.
to Medicare wages, railroad retirement act (RRTA) compensation,
and self-employment income over a threshold amount based on
General Instructions
your filing status. See Form 8959.
Net investment income tax. You may be subject to Net
Future Developments
Investment Income Tax (NIIT). NIIT is a 3.8% (0.038) tax on the
lesser of net investment income or the excess of your modified
For the latest information about developments related to Form 2210
adjusted gross income over a threshold amount. See Form 8960.
and its instructions, such as legislation enacted after they were
published, go to IRS.gov/Form2210.
Premium tax credit. You may be eligible to claim the premium tax
credit (PTC). The PTC is a tax credit for certain people who enroll, or
What's New
whose family member enrolls, in a qualified health plan offered
through a Health Insurance Marketplace (also called an Exchange).
Waiver of underpayment penalty due to tax reform. The
The PTC provides financial assistance to pay the premiums by
December 22, 2017, enactment of Public Law 115-97, commonly
reducing the amount of tax you owe, giving you a refund, or
referred to as the “Tax Cuts and Jobs Act”, “TCJA,” or “Tax Reform,”
increasing your refund amount. Advance payment of the PTC may
included a broad array of tax changes affecting millions of individual
be made through the Marketplace directly to your insurance
taxpayers. On February 28, 2018, the IRS released an updated
provider. If you received premium assistance through advance
Withholding Calculator at
IRS.gov/W4app
and a new version of
payments of the PTC in 2018, and the amount advanced exceeded
Form W-4 to help individual taxpayers determine their appropriate
the amount of PTC you can take, you could be subject to a penalty
amount of 2018 tax withholding. Despite the release of the updated
for underpaying your estimated tax. For example, you completed
Withholding Calculator and new Form W-4, some individual
Form 8962, Premium Tax Credit, and have additional income tax
taxpayers may have been unable to accurately calculate the amount
liability because too much was advanced to your insurance provider.
of their required estimated income tax payments for 2018 and would
For more information about the PTC and advance payments of the
be liable for a penalty. Therefore, the IRS is providing relief to these
PTC, see Form 8962 and Pub. 974.
taxpayers by waiving the estimated tax penalty in certain instances.
Purpose of Form
To qualify for the waiver, the total of your withholding and estimated
tax payments made on or before January 15, 2019, must be at least
Use Form 2210 to see if you owe a penalty for underpaying your
85% of the tax shown on your 2018 return. See Waiver of Penalty
estimated tax. The IRS will generally figure your penalty for you and
below for more information on how to determine your eligibility for
you should not file Form 2210. You can, however, use Form 2210 to
the waiver and how to request it.
figure your penalty if you wish and include the penalty on your return.
Deduction for qualified business income. For tax years
There are some situations in which you must file Form 2210, such as
beginning after December 31, 2017, individual taxpayers may be
to request a waiver.
entitled to a deduction of up to 20 percent of their qualified business
Who Must File Form 2210
income from a trade or business, including income from a
passthrough entity, but not from a C corporation, plus 20 percent of
Use the flowchart at the top of Form 2210, page 1, to see if you must
qualified real estate investment trust (REIT) dividends and qualified
file this form.
publicly traded partnership (PTP) income. The deduction is subject
to multiple limitations such as the type of trade or business, the
If box B, C, or D in Part II is checked, you must figure the
taxpayer’s taxable income, the amount of W-2 wages paid with
penalty yourself and attach Form 2210 to your return.
!
respect to the trade or business, and the unadjusted basis
CAUTION
immediately after acquisition of qualified property held by the trade
The IRS Will Figure the Penalty for
or business. The deduction can be taken in addition to the standard
or itemized deductions. For more information, see section 199A and
You
Pub. 535, Business Expenses.
If you didn't check box B, C, or D in Part II, you don't need to figure
Treatment of deferred foreign income under section 965. No
the penalty. The IRS will figure any penalty for underpayment of
underpayment penalty will be imposed under section 6654 with
estimated tax and send you a bill. If you file your return by April 15,
respect to your net tax liability under section 965. You may exclude
2019, no interest will be charged on the penalty if you pay the
such amounts when calculating the amount of your required
penalty by the date shown on the bill. If you want us to figure the
installment. For more information, see section 965.
penalty for you, complete your return as usual. Leave the penalty
Reminders
line on your return blank; don't file Form 2210.
Other Methods of Figuring the
Saturday, Sunday, or legal holiday. Generally, if a due date for
Penalty
performing any act for tax purposes falls on a Saturday, Sunday, or
legal holiday, the act is considered to be performed timely if it's
We realize that there are different ways to figure the correct penalty.
performed no later than the next day that isn't a Saturday, Sunday,
You don't have to use the method used on Form 2210 as long as
or legal holiday. A legal holiday is any legal holiday in the District of
you enter the correct penalty amount on the “Estimated tax penalty”
Columbia. These instructions make the adjustment for Saturdays,
line of your return.
Sundays, and legal holidays.
Health coverage tax credit. The health coverage tax credit has
However, if you are required to file Form 2210 because one or
been extended.
more of the boxes in Part II applies, you must complete certain lines
Mar 08, 2019
Cat. No. 63610I
2018
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
Additional medicare tax. A 0.9% Additional Medicare Tax applies
otherwise noted.
to Medicare wages, railroad retirement act (RRTA) compensation,
and self-employment income over a threshold amount based on
General Instructions
your filing status. See Form 8959.
Net investment income tax. You may be subject to Net
Future Developments
Investment Income Tax (NIIT). NIIT is a 3.8% (0.038) tax on the
lesser of net investment income or the excess of your modified
For the latest information about developments related to Form 2210
adjusted gross income over a threshold amount. See Form 8960.
and its instructions, such as legislation enacted after they were
published, go to IRS.gov/Form2210.
Premium tax credit. You may be eligible to claim the premium tax
credit (PTC). The PTC is a tax credit for certain people who enroll, or
What's New
whose family member enrolls, in a qualified health plan offered
through a Health Insurance Marketplace (also called an Exchange).
Waiver of underpayment penalty due to tax reform. The
The PTC provides financial assistance to pay the premiums by
December 22, 2017, enactment of Public Law 115-97, commonly
reducing the amount of tax you owe, giving you a refund, or
referred to as the “Tax Cuts and Jobs Act”, “TCJA,” or “Tax Reform,”
increasing your refund amount. Advance payment of the PTC may
included a broad array of tax changes affecting millions of individual
be made through the Marketplace directly to your insurance
taxpayers. On February 28, 2018, the IRS released an updated
provider. If you received premium assistance through advance
Withholding Calculator at
IRS.gov/W4app
and a new version of
payments of the PTC in 2018, and the amount advanced exceeded
Form W-4 to help individual taxpayers determine their appropriate
the amount of PTC you can take, you could be subject to a penalty
amount of 2018 tax withholding. Despite the release of the updated
for underpaying your estimated tax. For example, you completed
Withholding Calculator and new Form W-4, some individual
Form 8962, Premium Tax Credit, and have additional income tax
taxpayers may have been unable to accurately calculate the amount
liability because too much was advanced to your insurance provider.
of their required estimated income tax payments for 2018 and would
For more information about the PTC and advance payments of the
be liable for a penalty. Therefore, the IRS is providing relief to these
PTC, see Form 8962 and Pub. 974.
taxpayers by waiving the estimated tax penalty in certain instances.
Purpose of Form
To qualify for the waiver, the total of your withholding and estimated
tax payments made on or before January 15, 2019, must be at least
Use Form 2210 to see if you owe a penalty for underpaying your
85% of the tax shown on your 2018 return. See Waiver of Penalty
estimated tax. The IRS will generally figure your penalty for you and
below for more information on how to determine your eligibility for
you should not file Form 2210. You can, however, use Form 2210 to
the waiver and how to request it.
figure your penalty if you wish and include the penalty on your return.
Deduction for qualified business income. For tax years
There are some situations in which you must file Form 2210, such as
beginning after December 31, 2017, individual taxpayers may be
to request a waiver.
entitled to a deduction of up to 20 percent of their qualified business
Who Must File Form 2210
income from a trade or business, including income from a
passthrough entity, but not from a C corporation, plus 20 percent of
Use the flowchart at the top of Form 2210, page 1, to see if you must
qualified real estate investment trust (REIT) dividends and qualified
file this form.
publicly traded partnership (PTP) income. The deduction is subject
to multiple limitations such as the type of trade or business, the
If box B, C, or D in Part II is checked, you must figure the
taxpayer’s taxable income, the amount of W-2 wages paid with
penalty yourself and attach Form 2210 to your return.
!
respect to the trade or business, and the unadjusted basis
CAUTION
immediately after acquisition of qualified property held by the trade
The IRS Will Figure the Penalty for
or business. The deduction can be taken in addition to the standard
or itemized deductions. For more information, see section 199A and
You
Pub. 535, Business Expenses.
If you didn't check box B, C, or D in Part II, you don't need to figure
Treatment of deferred foreign income under section 965. No
the penalty. The IRS will figure any penalty for underpayment of
underpayment penalty will be imposed under section 6654 with
estimated tax and send you a bill. If you file your return by April 15,
respect to your net tax liability under section 965. You may exclude
2019, no interest will be charged on the penalty if you pay the
such amounts when calculating the amount of your required
penalty by the date shown on the bill. If you want us to figure the
installment. For more information, see section 965.
penalty for you, complete your return as usual. Leave the penalty
Reminders
line on your return blank; don't file Form 2210.
Other Methods of Figuring the
Saturday, Sunday, or legal holiday. Generally, if a due date for
Penalty
performing any act for tax purposes falls on a Saturday, Sunday, or
legal holiday, the act is considered to be performed timely if it's
We realize that there are different ways to figure the correct penalty.
performed no later than the next day that isn't a Saturday, Sunday,
You don't have to use the method used on Form 2210 as long as
or legal holiday. A legal holiday is any legal holiday in the District of
you enter the correct penalty amount on the “Estimated tax penalty”
Columbia. These instructions make the adjustment for Saturdays,
line of your return.
Sundays, and legal holidays.
Health coverage tax credit. The health coverage tax credit has
However, if you are required to file Form 2210 because one or
been extended.
more of the boxes in Part II applies, you must complete certain lines
Mar 08, 2019
Cat. No. 63610I
and enter the penalty on the “Estimated tax penalty” line of your
Farmers and fishermen. If you meet both tests 1 and 2 below, you
return.
don't owe a penalty for underpaying estimated tax.
If you use the short method, complete Part I, check the box(es)
1. Your gross income from farming or fishing is at least
that applies in Part II, and complete Part III. Enter the penalty on
two-thirds of your annual gross income from all sources for 2017 or
Form 2210, line 17, and on the “Estimated tax penalty” line on your
2018.
tax return.
2. You filed Form 1040 or 1041 and paid the entire tax due by
If you use the regular method, complete Part I, check the box(es)
March 1, 2019.
that applies in Part II, complete Part IV, Section A, and the penalty
worksheet, later. Enter the penalty on Form 2210, line 27, and on the
See chapter 2 of Pub. 505, Tax Withholding and Estimated Tax,
“Estimated tax penalty” line on your tax return.
for the definition of gross income from farming and fishing.
If you use the annualized income installment method, complete
If you meet test 1 but not test 2, use Form 2210-F, Underpayment
Part I, check the box(es) that applies in Part II, complete
of Estimated Tax by Farmers and Fishermen, to see if you owe a
Schedule AI, complete Part IV, Section A, and the penalty worksheet
penalty. If you don't meet test 1, use Form 2210.
(Worksheet for Form 2210, Part IV, Section B-Figure the Penalty),
later. Enter the penalty on Form 2210, line 27, and on the “Estimated
Waiver of Penalty
tax penalty” line on your tax return.
Who Must Pay the
If you have an underpayment, all or part of the penalty for that
underpayment will be waived if the IRS determines that:
Underpayment Penalty
In 2017 or 2018, you retired after reaching age 62 or became
disabled, and your underpayment was due to reasonable cause
In general, you may owe the penalty for 2018 if the total of your
(and not willful neglect), or
withholding and timely estimated tax payments didn't equal at least
The underpayment was due to a casualty, disaster, or other
the smaller of:
unusual circumstance, and it would be inequitable to impose the
penalty. For federally declared disaster areas, see Federally
1. 90% of your 2018 tax, or
declared disaster.
2. 100% of your 2017 tax. Your 2017 tax return must cover a
12-month period.
To request any of the above waivers, do the following.
1. Check box A or box B in Part II.
Special rules for certain individuals. Different percentages are
a. If you checked box A, complete only page 1 of Form 2210
used for farmers and fishermen, and certain higher income
and attach it to your tax return (you aren't required to figure the
taxpayers.
amount of penalty to be waived).
Farmers and fishermen. If at least two-thirds of your gross
income for 2017 or 2018 is from farming and fishing, substitute
b. If you checked box B, complete Form 2210 through line 16
66
/
% for 90% in (1) above. See Farmers and fishermen, later, to
2
(or if you use the regular method, line 26 plus the penalty worksheet,
3
see if you qualify.
later) without regard to the waiver. Enter the amount you want
Higher income taxpayers. If your adjusted gross income (AGI)
waived in parentheses on the dotted line next to line 17 (line 27 for
for 2017 was more than $150,000 ($75,000 if your 2017 filing status
the regular method). Subtract this amount from the total penalty you
is married filing separately), substitute 110% for 100% in (2) above.
figured without regard to the waiver, and enter the result on line 17
(line 27 for the regular method).
Penalty figured separately for each required payment. The
2. Attach Form 2210 and a statement to your return explaining
penalty is figured separately for each installment due date.
the reasons you were unable to meet the estimated tax
Therefore, you may owe the penalty for an earlier due date even if
requirements and the time period for which you are requesting a
you paid enough tax later to make up the underpayment. This is true
waiver.
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
3. If you are requesting a waiver due to retirement or disability,
annualized income installment method. For details, see the
attach documentation that shows your retirement date (and your age
Schedule AI instructions later.
on that date) or the date you became disabled.
4. If you are requesting a waiver due to a casualty, disaster
Return. In these instructions, “return” refers to your original return.
(other than a federally declared disaster as discussed next), or other
However, an amended return is considered the original return if it is
unusual circumstance, attach documentation such as copies of
filed by the due date (including extensions) of the original return.
police and insurance company reports.
Also, a joint return that replaces previously filed separate returns is
considered the original return.
The IRS will review the information you provide and decide
whether to grant your request for a waiver.
Exceptions to the Penalty
Tax reform waiver. If you are an individual taxpayer and you
You won't have to pay the penalty or file this form if either of the
would otherwise owe an estimated tax penalty, the IRS will waive the
following applies.
penalty under certain conditions. You would otherwise owe a penalty
You had no tax liability for 2017, you were a U.S. citizen or
if line 9 is more than line 6 after completing Part I of Form 2210, and
resident alien for the entire year (or an estate of a domestic
you have an amount of more than zero on line 27 after completing
decedent or a domestic trust), and your 2017 tax return was (or
Part IV (or on line 17 of Part III if you qualify to use the Short
would have been had you been required to file) for a full 12 months.
Method). If you would otherwise owe a penalty, complete the 85%
The total tax shown on your 2018 return minus the amount of tax
Exception Worksheet below to see if you meet the conditions to be
you paid through withholding is less than $1,000. To determine
eligible to claim the waiver. If so, you must check Box A in Part II,
whether the total tax is less than $1,000, complete Part I, lines 1
write "85% Waiver" next to Box A, and file page 1 of Form 2210 with
through 7.
your return to request the waiver. Do not file an additional statement
Estates and trusts. No penalty applies to either of the following.
or attachment to claim the waiver.
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.
-2-
Instructions for Form 2210 (2018)
85% Exception Worksheet
the amount includable on line 1 of Form 2210 only, you may refigure
the amount you reported on line 13 of your Form 1040 return as
Before you begin:
described below.
Complete Part I of Form 2210. If you checked
“Yes” on box 9, complete the worksheet below
to see if you qualify for the 85% Waiver relief.
If you reported a net section 965 inclusion on line 21 of Schedule 1
(Form 1040), for purposes of figuring the amount includable on line 1
of Form 2210 only, the amount of the section 965 inclusion should
1.
Enter the amount from Form 2210, Part I, line 4 here . . . . . . . .
be zero. Refigure lines 6 through 13 on page 2 of Form 1040. Enter
the refigured line 13 amount here.
2.
Multiply line 1 by 85%
. . . . . . . . . . . . . . . . . . . . . . . . . .
3.
Enter your withholding taxes from Form 2210, Part I,
If you are a shareholder of an S corporation and you reported a
line 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
section 965 inclusion on line 21 of Schedule 1 (Form 1040) and
4.
Enter the amount of your 2018 estimated tax payments made on
entered a negative amount on line 11a for the deferred net section
or before January 15, 2019. . . . . . . . . . . . . . . . . . . . . . . .
965 tax liability amount on page 2 of Form 1040, for purposes of
5.
Add lines 3 and 4 above. . . . . . . . . . . . . . . . . . . . . . . . . .
figuring the amount includable on line 1 of Form 2210 only, the
amount of the section 965 inclusion should be zero. Refigure lines 6
6 .
Is line 5 above greater than or equal to the amount on line 2
above? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
through 13 on page 2 of Form 1040. Do not enter any amount on
line 11a for the deferred net section 965 tax liability amount on
Yes
You qualify for the 85% Waiver relief.
.
Check Box A in Part II of Form 2210,
page 2 of Form 1040 when refiguring lines 6 through 13. Enter the
write “85% Waiver” next to Box A, and
refigured line 13 amount here.
file page 1 of Form 2210 with your
return. . . . . . . . . . . . . . . . . . . . . .
If you are a shareholder of an S corporation and entered a positive
No.
You do not qualify for the 85% Waiver
amount on line 11a for the section 965 net tax liability amount, for
relief. Follow the instructions for the
STOP
purposes of figuring the amount includable on line 1 of Form 2210
“Yes” box on line 9 of Form 2210, Part I,
only, the amount of any positive net section 965 tax liability amounts
ignoring the 85% Waiver. . . . . . . . . .
reported on line 11a on page 2 of Form 1040 should be zero.
Refigure lines 11 through 13 on page 2 of Form 1040. Enter the
refigured line 13 amount here.
Federally declared disaster. Certain estimated tax payment
Form 1041 filers: You may exclude the amount of your net
deadlines for taxpayers who reside or have a business in a federally
tax liability under section 965 when calculating the amount
!
declared disaster area are postponed for a period during and after
of your required annual payment. For purposes of figuring
the disaster. During the processing of your tax return, the IRS
CAUTION
the amount includable on line 1 of Form 2210 only, you may refigure
automatically identifies taxpayers located in a covered disaster area
the amount you reported on Form 1041, Schedule G, line 3 as
(by county or parish) and applies the appropriate penalty relief.
described below.
Don't 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 reported a section 965 inclusion on line 8 of Form 1041, the
amount of the section 965 inclusion should be zero. Refigure lines 8
An individual or a fiduciary for an estate or trust not in a covered
through 22 of Form 1041. Next, refigure lines 1 through 3 of Form
disaster area but whose books, records, or tax professionals' offices
1041, Schedule G. Enter the refigured line 3 amount here.
are in a covered area is also entitled to relief. Also eligible are relief
workers affiliated with a recognized government or charitable
Line 2
organization assisting in the relief activities in a covered disaster
area. If you meet either of these eligibility requirements, you must
Enter the total of the following amounts.
call the IRS disaster hotline at 1-866-562-5227 and identify yourself
as eligible for this relief. For information about claiming relief, see
IF you file...
THEN include on line 2 the amounts on...
IRS.gov/DisasterTaxRelief. For more information on disaster
assistance and emergency relief for individuals and businesses, see
1040
Schedule 4 (Form 1040), lines 57, 59 (additional tax on
IRS.gov/DisasterRelief. See Pub. 976, Disaster Relief and Pub. 505,
distributions only), 60a*, 60b, and if applicable, the Additional
chapter 4, for more details. For guidance on figuring estimated taxes
Medicare Tax (Form 8959) and/or Net Investment Income
Tax (Form 8960) on Schedule 4 (Form 1040), line 62, and
for trusts and certain estates, see Notice 87-32, 1987-1 C.B. 477.
any write-ins on Schedule 4 (Form 1040), line 62 with the
exception of:
Specific Instructions
Uncollected social security and Medicare tax or RRTA tax
on tips or group-term life insurance (identified as “UT”);
Part I—Required Annual Payment
Tax on excess golden parachute payments (identified as
“EPP”);
Complete lines 1 through 9 to figure your required annual payment.
Excise tax on insider stock compensation from an
expatriated corporation (identified as “ISC”);
If you file an amended return by the due date of your original
Look-back interest due under section 167(g) (identified
return, use the amounts shown on your amended return to figure
as “8866”), and under section 460(b) (identified as “8697”);
your underpayment. If you file an amended return after the due date,
Recapture of federal mortgage subsidy (identified as
use the amounts shown on the original return.
“FMSR”); and
Interest accrued on deferred tax under a section 1294
Exception. If you and your spouse file a joint return after the due
election for the year of termination (see Form 8621, Part VI,
date to replace previously filed separate returns, use the amounts
line 24, and Instructions for Form 8621). Also, subtract the
shown on the joint return to figure your underpayment.
amount from Form 8621, line 9c, that has been entered in
brackets to the left of Form 1040, line 15.
Line 1
* If you’re a household employer, include your household employment taxes on
Enter the amount from Form 1040, line 13; Form 1040NR, line 53; or
line 2. Don’t include household employment taxes if both of the following are
Form 1040NR-EZ, line 13. For an estate or trust, enter the amount
true: (1) You didn’t have federal income tax withheld from your income and, (2)
from Form 1041, Schedule G, line 3.
You wouldn’t be required to make estimated tax payments even if the
household employment taxes weren't included.
Form 1040 filers: You may exclude the amount of your net
tax liability under section 965 when calculating the amount
!
of your required annual payment. For purposes of figuring
CAUTION
Instructions for Form 2210 (2018)
-3-
IF you file...
THEN include on line 2 the amounts on...
IF you filed
Add the following amounts shown on your 2017 tax
for 2017...
return.
1040NR
Lines 54, 55, 57 (additional tax on distributions only), 58,
59a*, 59b, and if applicable, Additional Medicare Tax (Form
1040
Lines 56, 57, 59 (additional tax on distributions only), 60a*,
8959) and/or Net Investment Income Tax (Form 8960) on
60b, and any write-ins on line 62 with the exception of:
line 60, and any write-ins on line 60 with the exception of:
Uncollected social security and Medicare tax or RRTA
Uncollected social security and Medicare tax or RRTA tax
tax on tips or group-term life insurance (identified as “UT”);
on tips or group-term life insurance (identified as “UT”);
Tax on excess golden parachute payments (identified as
Tax on excess golden parachute payments (identified as
“EPP”);
“EPP”);
Excise tax on insider stock compensation from an
Excise tax on insider stock compensation from an
expatriated corporation (identified as “ISC”);
expatriated corporation (identified as “ISC”);
Look-back interest due under section 167(g) (identified
Look-back interest due under section 167(g) (identified
as “8866”), and under section 460(b) (identified as “8697”);
as “From Form 8866”), and under section 460(b) (identified
Recapture of federal mortgage subsidy (identified as
as “From Form 8697”);
“FMSR”); and
Recapture of federal mortgage subsidy (identified as
Interest accrued on deferred tax under a section 1294
“FMSR”); and
election for the year of termination (see Form 8621, Part VI,
Interest accrued on deferred tax under a section 1294
line 24, and Instructions for Form 8621). Also, subtract the
election for the year of termination (see Form 8621, Part VI,
amount from Form 8621, line 9c, that has been entered in
line 24, and Instructions for Form 8621).
brackets to the left of Form 1040, line 63.
1041
Schedule G, lines 4, 5, 6*, and any write-ins on line 7 with
1040A
Line 37
the exception of:
1040NR
Lines 53, 54, 55, 57 (additional tax on distributions only), 58,
Look-back interest due under section 167(g) (identified
59a*, 59b, and any write-ins on line 60 with the exception of:
as “From Form 8866”);
Uncollected social security and Medicare tax or RRTA
Look-back interest due under section 460(b) (identified
tax on tips or group-term life insurance (identified as “UT”);
as “From Form 8697”); and
Tax on excess golden parachute payments (identified as
Interest accrued on deferred tax under a section 1294
“EPP”);
election for the year of termination (see Form 8621, Part VI,
Excise tax on insider stock compensation from an
line 24, and Instructions for Form 8621).
expatriated corporation (identified as “ISC”);
* If you’re a household employer, include your household employment taxes on
Look-back interest due under section 167(g) (identified
line 2. Don’t include household employment taxes if both of the following are
as “From Form 8866”), and under section 460(b) (identified
true: (1) You didn’t have federal income tax withheld from your income and, (2)
as “From Form 8697”);
You wouldn’t be required to make estimated tax payments even if the
Recapture of federal mortgage subsidy (identified as
household employment taxes weren't included.
“FMSR”); and
Interest accrued on deferred tax under a section 1294
election for the year of termination (see Form 8621, Part VI,
line 24, and Instructions for Form 8621).
If you file Form 1040NR-EZ, you won't have an entry on line 2.
1040NR-EZ
Line 15
Line 3
1041
Schedule G, lines 4, 5, 6*, and any write-ins on line 7 with
the exception of:
Enter the total amount of the following refundable credits, if any, that
Look-back interest due under section 167(g) (identified
you claim on your tax return.
as “From Form 8866”);
Earned income credit.
Look-back interest due under section 460(b) (identified
Additional child tax credit.
as “From Form 8697”); and
Refundable part of the American opportunity credit (Form 8863,
Interest accrued on deferred tax under a section 1294
Line 8).
election for the year of termination (see Form 8621, Part VI,
Credit for federal tax paid on fuels.
line 24, and Instructions for Form 8621).
Health coverage tax credit.
* If you’re a household employer, include your household employment taxes on
Premium tax credit (Form 8962).
line 2. Don’t include household employment taxes if both of the following are
Credit determined under section 1341(a)(5)(B).
true: (1) You didn’t have federal income tax withheld from your income and, (2)
You wouldn’t be required to make estimated tax payments even if the
To figure the amount of the section 1341 credit, see Repayments
household employment taxes weren't included.
in Pub. 525.
Line 6
(2) Subtract refundable credits listed below:
Enter the taxes withheld from Form 1040, line 16, and Schedule 5
Subtract the total of the following refundable credits, if any, that you
(Form 1040), line 72; Form 1040NR, lines 62a, 62b, 62c, 62d, and
claimed on your 2017 tax return:
67; or Form 1040NR-EZ, lines 16a and 16b. For an estate or trust,
Earned income credit.
enter the amount from Form 1041, line 25e.
Additional child tax credit.
Refundable part of the American opportunity credit (Form 8863,
Filers of Form 8689, Allocation of Individual Income Tax to the
line 8).
U.S. Virgin Islands. Also enter on this line the amount(s) from
Credit for federal tax paid on fuels.
Form 8689, lines 40 and 45, that you entered on line 18 of your 2018
Health coverage tax credit.
Form 1040.
Premium tax credit (Form 8962).
Credit determined under section 1341(a)(5)(B).
Line 8
Enter the 2017 tax you figured above unless the AGI on your
To figure your 2017 tax, first add the amounts listed in (1) later, then
2017 return is more than $150,000 ($75,000 if married filing
subtract from that total amount the refundable credits listed in (2)
separately for 2018). If the AGI shown on your 2017 tax return is
later that are shown on your 2017 tax return. (1) Add the amounts
more than $150,000 ($75,000 if married filing separately), enter
listed in the chart below based on which tax return you filed
110% of the amount of the tax computed earlier.
for 2017.
If you are filing a joint return for 2018, but you didn't file a joint
return for 2017, add your 2017 tax (as figured earlier) to your
spouse's 2017 tax (as figured earlier) and enter the total on line 8. If
you filed a joint return for 2017 but you aren't filing a joint return for
-4-
Instructions for Form 2210 (2018)
2018, see Pub. 505, chapter 4, General Rule, to figure your share of
federal income tax (and excess social security or tier 1 railroad
the 2017 tax to enter on line 8. If you didn't file a return for 2017 or
retirement tax) as having been withheld evenly throughout the year,
your 2017 tax year was less than 12 months, don't complete line 8.
you are considered to have paid one-third of these amounts on each
Instead, enter the amount from line 5 on line 9. However, see
payment due date.
Exceptions to the Penalty, earlier.
4. Skip all lines in column (b) that are shaded in column (a).
Form 1040 filers: You may exclude the amount of your net
Section A—Figure Your Underpayment
tax liability under section 965 when calculating the amount
!
of your maximum required annual payment based on your
Line 18
CAUTION
prior year's tax. For purposes of figuring out the amount includable
Enter on line 18, columns (a) through (d), the amount of your
on line 8 of Form 2210 only, you may refigure the amount you
required installment for the due date shown in each column heading.
reported on line 44 of your 2017 Form 1040 return as described
For most taxpayers, this is one-fourth of the required annual
below.
payment shown in Part I, line 9. However, it may be to your benefit to
If you reported a net section 965 amount on line 21 of your 2017
figure your required installments by using the annualized income
installment method. See the Schedule AI instructions later.
Form 1040, for purposes of figuring the amount includable on line 8
of Form 2210 only, the amount of the section 965 inclusion should
be zero. Refigure lines 22, 37, and 38–56 on your 2017 Form 1040,
Line 19
and enter the refigured line 56 amount here.
Table 1—List your estimated tax payments for 2018. Before
If you are a shareholder of an S corporation and you reported a net
completing line 19, enter in Table 1 the payments you made for
section 965 amount on line 21 of your 2017 Form 1040, and you
2018. Include the following payments.
reduced line 44 by the amount of your net tax liability deferred under
Any overpayment from your 2017 return applied to your 2018
section 965(i), for purposes of figuring the amount includable on
estimated tax payments. Generally, treat the payment as made on
line 8 of Form 2210 only, the amount of the section 965 inclusion
April 17, 2018.
should be zero. Do not enter any amount on line 44 for the amount of
Estimated tax payments you made for the 2018 tax year, plus any
net tax liability deferred under section 965(i). Refigure lines 22, 37,
federal income tax and excess social security and tier 1 railroad
and 38–56 on your 2017 Form 1040, and enter the refigured line 56
retirement tax withheld.
amount here.
Any payment made on your balance due return for 2018. Use the
For Form 1041 filers: You may exclude the amount of your net tax
date you filed (or will file) your return or April 15, 2019, whichever is
liability under section 965 when calculating the amount of your
earlier, as the payment date.
maximum required annual payment based on your prior year's tax.
For purposes of figuring the amount includable on line 8 of Form
2210 only, you may refigure the amount you reported on
Table 1. Estimated Tax Payments
Schedule G, line 7, of your 2017 Form 1041 as described below.
If you reported a net section 965 amount to the extent it was
Date
Payment
Date
Payment
distributed to a beneficiary or beneficiaries on line 8 of Form 1041,
amount
amount
the amount of the net section 965 amount should be zero. Refigure
lines 8 through 22 of Form 1041, and then refigure lines 1 through 3
and 7 of Schedule G. Enter the refigured amount from Schedule G,
line 7, here.
If you did not report a net section 965 amount on your 2017 Form
1041 but instead included the net tax liability under section 965 on
Schedule G, line 7 (either in its entirety or reduced by the amount of
the net tax liability deferred under section 965(i)), that amount
Entries on Form 2210. Enter on line 19 the following tax
should not be included. Refigure Schedule G, line 7, by not including
payments.
the section 965 net tax liability (in its entirety or reduced for section
Column (a)—payments you made by April 17, 2018.
965(i)). Enter the refigured amount from Schedule G, line 7, here.
Column (b)—payments you made after April 17, 2018, through
Part III—Short Method
June 15, 2018.
Column (c)—payments you made after June 15, 2018, through
If you can use the short method (see Form 2210, Part III, Can You
September 17, 2018.
Use the Short Method?), complete lines 10 through 14 to figure your
Column (d)—payments you made after September 17, 2018,
total underpayment for the year, and lines 15 through 17 to figure the
through January 15, 2019.
penalty. Fiscal year filers: See Pub. 505 to see if you can use the
When figuring your payment dates and the amounts to enter on
short method. In certain circumstances, the IRS will waive all or part
line 19 of each column, apply the following rules.
of the underpayment penalty. See Waiver of Penalty, earlier.
For withheld federal income tax and excess social security or tier
Part IV—Regular Method
1 railroad retirement tax (RRTA), you are considered to have paid
one-fourth of these amounts on each payment due date unless you
Use the regular method if you aren't eligible to use the short method.
can show otherwise. You will find these amounts on Form 1040,
See Form 2210, Part III, Must You Use the Regular Method? If you
line 16, and Schedule 5 (Form 1040), line 72; Form 1040NR, lines
checked box C in Part II, complete Schedule AI before Part IV.
62a, 62b, 62c, 62d, and 67; Form 1040NR-EZ, lines 16a and 16b;
and Form 1041, line 25e.
Form 1040NR or 1040NR-EZ filers. If you are filing Form 1040NR
or 1040NR-EZ and didn't receive wages as an employee subject to
If you treat withholding as paid for estimated tax purposes
U.S. income tax withholding, the instructions for completing Part IV
when it was actually withheld, you must check box D in Part
!
are modified as follows.
II and complete and attach Form 2210 to your return.
CAUTION
1. Skip column (a).
Include all estimated tax payments you made for each period.
2. On line 18, column (b), enter one-half of the amount on line 9
Include any overpayment from your 2017 tax return you elected to
of Part I (unless you are using the annualized income installment
apply to your 2018 estimated tax. If your 2017 return was fully paid
method).
by the due date, treat the overpayment as a payment made on April
17, 2018. If you mail your estimated tax payments, use the date of
3. On line 19, column (b), enter the total tax payments made
the U.S. postmark as the date of payment.
through June 15, 2018, for the 2018 tax year. If you are treating
Instructions for Form 2210 (2018)
-5-

Download Instructions for IRS Form 2210 - Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2018

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