Form NJ-2210 "Underpayment of Estimated Tax by Individuals, Estates or Trusts" - New Jersey

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NJ-2210
UNDERPAYMENT OF ESTIMATED TAX
2018
FORM
BY INDIVIDUALS, ESTATES OR TRUSTS
Fill in the oval at Line 51, Form NJ-1040 and enclose this form with your return.
Name(s) as shown on Form NJ-1040
Social Security Number
PART I
FIGURING YOUR UNDERPAYMENT
1. 2018 Tax (Line 49, Form NJ-1040) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the total of Lines 53, 54, 56, 57, 58, 59, and 60, Form NJ-1040 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Subtract Line 2 from Line 1 (If less than $400, do not complete the rest of this form) . . . . . . . . . . . . . . . . . . . . . 3.
4a. Multiply the amount on Line 1 by .80 (80%) (Two-thirds for qualified farmers) . . . . . . . . . . . . . . . . . . . . . . . . . 4a.
4b. Enter 2017 tax (From Form NJ-1040, Line 44) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4b.
PAYMENT DUE DATES
(A)
(B)
(C)
(D)
APRIL 17, 2018
JUNE 15, 2018
SEPT 17, 2018
JAN 15, 2019
5. Use the lesser amount on either line 4a or 4b and divide by
four. Enter the result in each column . . . . . . . . . . . . . . . . . . .
5.
6. Estimated tax paid and tax withheld per period (see instr.)
If each column on Line 6 is greater than the corresponding
column on Line 5, do not complete the rest of this form . . . .
6.
7. Enter the overpayment (Line 13) from the previous column
(Complete Lines 7 through 13 for one column before
completing the next column.) . . . . . . . . . . . . . . . . . . . . . . . . .
7.
8. Add Line 6 and Line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.
9. Enter the total underpayment (Line 11 plus Line 12) from
the previous column . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.
10. Enter Line 8 minus Line 9. If zero or less, enter zero . . . . . . 10.
11. Remaining underpayment from previous period. If Line
10 is zero, enter Line 9 minus Line 8. Otherwise enter zero . 11.
12. UNDERPAYMENT (If Line 5 is greater than Line 10, enter
Line 5 minus Line 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. OVERPAYMENT (If Line 10 is greater than Line 5, enter
Line 10 minus Line 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
PART II
EXCEPTIONS
(See instructions. Complete worksheets for exceptions 2, 3, and 4 and enclose calculations for each exception claimed.)
If you meet exception 1 at Line 15, do not file this form.
These amounts will be verified by the Division of Taxation.
14. Total amount paid and withheld from January 1 through
APRIL 17, 2018
JUNE 15, 2018
SEPT 17, 2018
JAN 15, 2019
payment due date shown. (Do not include withholdings
after December 31, 2018.) (See instructions) . . . . . . . . . . . . . . 14.
25% of 2017 Tax
50% of 2017 Tax
75% of 2017 Tax
100% of 2017 Tax
15. Exception 1 – Enter 2017 tax (Line 44) . $
15.
25% of Tax
50% of Tax
75% of Tax
100% of Tax
16. Exception 2 – Tax on 2017 gross income using
2018 exemptions and tax rates . . . . . . . . . . . . . . . . . . . . . . . . . 16.
20% of Tax
40% of Tax
60% of Tax
17. Exception 3 – Tax on annualized 2018 income . . . . . . . . . . . . 17.
90% of Tax
90% of Tax
90% of Tax
18. Exception 4 – Tax on 2018 income over 3, 5 and 8-month
periods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.
IF THE AMOUNT OF ANY EXCEPTION IS EQUAL TO OR LESS THAN THE CORRESPONDING AMOUNT
AT LINE 14, INTEREST WILL NOT BE CHARGED FOR THAT PERIOD.
$
19. TOTAL INTEREST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Include this amount on Line 51, Form NJ-1040).
NJ-2210
UNDERPAYMENT OF ESTIMATED TAX
2018
FORM
BY INDIVIDUALS, ESTATES OR TRUSTS
Fill in the oval at Line 51, Form NJ-1040 and enclose this form with your return.
Name(s) as shown on Form NJ-1040
Social Security Number
PART I
FIGURING YOUR UNDERPAYMENT
1. 2018 Tax (Line 49, Form NJ-1040) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the total of Lines 53, 54, 56, 57, 58, 59, and 60, Form NJ-1040 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Subtract Line 2 from Line 1 (If less than $400, do not complete the rest of this form) . . . . . . . . . . . . . . . . . . . . . 3.
4a. Multiply the amount on Line 1 by .80 (80%) (Two-thirds for qualified farmers) . . . . . . . . . . . . . . . . . . . . . . . . . 4a.
4b. Enter 2017 tax (From Form NJ-1040, Line 44) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4b.
PAYMENT DUE DATES
(A)
(B)
(C)
(D)
APRIL 17, 2018
JUNE 15, 2018
SEPT 17, 2018
JAN 15, 2019
5. Use the lesser amount on either line 4a or 4b and divide by
four. Enter the result in each column . . . . . . . . . . . . . . . . . . .
5.
6. Estimated tax paid and tax withheld per period (see instr.)
If each column on Line 6 is greater than the corresponding
column on Line 5, do not complete the rest of this form . . . .
6.
7. Enter the overpayment (Line 13) from the previous column
(Complete Lines 7 through 13 for one column before
completing the next column.) . . . . . . . . . . . . . . . . . . . . . . . . .
7.
8. Add Line 6 and Line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.
9. Enter the total underpayment (Line 11 plus Line 12) from
the previous column . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.
10. Enter Line 8 minus Line 9. If zero or less, enter zero . . . . . . 10.
11. Remaining underpayment from previous period. If Line
10 is zero, enter Line 9 minus Line 8. Otherwise enter zero . 11.
12. UNDERPAYMENT (If Line 5 is greater than Line 10, enter
Line 5 minus Line 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. OVERPAYMENT (If Line 10 is greater than Line 5, enter
Line 10 minus Line 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
PART II
EXCEPTIONS
(See instructions. Complete worksheets for exceptions 2, 3, and 4 and enclose calculations for each exception claimed.)
If you meet exception 1 at Line 15, do not file this form.
These amounts will be verified by the Division of Taxation.
14. Total amount paid and withheld from January 1 through
APRIL 17, 2018
JUNE 15, 2018
SEPT 17, 2018
JAN 15, 2019
payment due date shown. (Do not include withholdings
after December 31, 2018.) (See instructions) . . . . . . . . . . . . . . 14.
25% of 2017 Tax
50% of 2017 Tax
75% of 2017 Tax
100% of 2017 Tax
15. Exception 1 – Enter 2017 tax (Line 44) . $
15.
25% of Tax
50% of Tax
75% of Tax
100% of Tax
16. Exception 2 – Tax on 2017 gross income using
2018 exemptions and tax rates . . . . . . . . . . . . . . . . . . . . . . . . . 16.
20% of Tax
40% of Tax
60% of Tax
17. Exception 3 – Tax on annualized 2018 income . . . . . . . . . . . . 17.
90% of Tax
90% of Tax
90% of Tax
18. Exception 4 – Tax on 2018 income over 3, 5 and 8-month
periods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.
IF THE AMOUNT OF ANY EXCEPTION IS EQUAL TO OR LESS THAN THE CORRESPONDING AMOUNT
AT LINE 14, INTEREST WILL NOT BE CHARGED FOR THAT PERIOD.
$
19. TOTAL INTEREST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Include this amount on Line 51, Form NJ-1040).
NJ-2210
FORM
WORKSHEETS
EXCEPTION II
Tax on 2017 Gross Income using 2018 exemptions and tax rates
1. Enter 2017 NJ Gross Income (Line 28, 2017 NJ-1040) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter 2018 Total Exemptions (Line 30, 2018 NJ-1040) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Subtract Line 2 from Line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Calculate Tax on Line 3 (2018 tax rates) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Enter Credit for Income Taxes Paid to Other Jurisdictions (Line 42, 2018 NJ-1040) . . . . . . . . . . . . . . 5.
6. Subtract Line 5 from Line 4. Enter the applicable percentage of this amount on
Line 16, Part II of this form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
EXCEPTION III
Tax on 2018 Annualized Income (attach calculations)
states and trusts, do not use the period ending dates shown, instead use the following ending dates:
E
2/28/18, 4/30/18, and 7/31/18. Also, estates and trusts cannot use the annualization amounts shown on
Line 2 and must use 6, 3, and 1.7143, respectively.
1/1/18 – 3/31/18
1/1/18 – 5/31/18
1/1/18 – 8/31/18
1. Enter the portion of NJ Gross Income (Line 29, NJ-1040)
that is applicable to each period shown . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.
2. Annualization amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.
4
2.4
1.5
3. Annualized Income (Multiply Line 1 by Line 2) . . . . . . . . . . . . . . . . . . . .
3.
4. Enter Total Exemptions (Line 30, NJ-1040) . . . . . . . . . . . . . . . . . . . . . . . .
4.
5. Subtract Line 4 from Line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
6. Calculate Tax on Line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
7. Enter the portion of the Credit for Income Taxes Paid to Other
Jurisdictions (Line 42, NJ-1040) that is applicable to each period . . . . . . .
7.
8. Subtract Line 7 from Line 6. Enter the applicable percentage of
this amount on Line 17, Part II of this form . . . . . . . . . . . . . . . . . . . . . . . .
8.
EXCEPTION IV
Tax on Actual 2018 Taxable Income over 3, 5, and 8-month periods. (Attach calculations)
1/1/18 – 3/31/18
1/1/18 – 5/31/18
1/1/18 – 8/31/18
1. Enter the actual amount of NJ Taxable Income (Line 40, NJ-1040)
that is applicable to each period shown . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.
2. Calculate Tax on Line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.
3. Enter the portion of the Credit for Income Taxes Paid to Other
Jurisdictions (Line 42, NJ-1040) that is applicable to each
period shown. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
4. Subtract Line 3 from Line 2. Enter 90% of this amount on Line 18,
Part II of this form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
New Jersey Gross Income Tax
Instructions for Form NJ-2210
Underpayment of Estimated Tax by Individuals, Estates, or Trusts
2018
Use Form NJ-2210 to determine if you are subject to interest on the underpayment of estimated tax. Estates and trusts
are subject to interest on underpayment of estimated tax and may need to complete Form NJ-2210, except estates and trusts
that meet the two year limitation and other criteria of federal Internal Revenue Code section 6654(1)(2). Complete Part I,
Figuring your Underpayment, to determine if you have not paid enough estimated tax during any of the payment periods. If
you have not, complete Part II, Exceptions, to determine if an exception applies to any of the payment periods. If no excep-
tion applies, use the worksheet on the next page to calculate the interest for that period.
In General – You may owe interest if you did not make estimated
Line 14 – Based on the amounts indicated on Line 6, Part I, enter
the total amount of all estimated tax payments and taxes withheld
payments, including withholdings (see Line 6), equal to at least
80% of your 2018 tax liability (Line 49, Form NJ-1040) or 100%
by each of the due dates indicated on Part II.
of your 2017 tax liability, provided your 2017 New Jersey Gross
Income Tax return covered a full 12-month period.
Exceptions 1, 2, 3 & 4 – You must complete the appropriate
worksheet for exemptions 2, 3, and 4 and attach all calculations
If an underpayment does exist for any column in Part I, you
for each of the exceptions claimed. If you meet exception 1 at
should complete Part II, Exceptions, and the appropriate work-
Line 15 do not file this form. These amounts will be automati-
sheet on page 2, NJ-2210 to determine if any of the exceptions on
cally verified by the Division of Taxation.
Part II may apply. You must complete the appropriate worksheet
for exceptions 2, 3, and 4 and attach all calculations for each of
Exception 1 – Enter your prior year tax liability in the space pro-
the exceptions claimed.
vided at Line 15. Exception 1 only applies if your prior year tax
SPECIFIC INSTRUCTIONS
return covered a full 12-month period and your current tax year
payments (Line 14) are at least equal to your prior year tax liabil-
PART I
ity. Your prior year tax liability is zero, if a return was not
required to be filed. Enter the applicable percentage of your prior
Line 3 – If Line 3 is $400 or more, complete Lines 4 through 13.
year tax liability in each column at Line 15, as indicated.
Line 6 – For the purpose of determining your underpayment of
estimated tax, tax withheld includes the amount of New Jersey
Exception 2 – Exception 2 is calculated by subtracting the total
Tax Withheld (Line 53, Form NJ-1040), Property Tax Credit
amount of your current tax year exemptions from your prior year
(Line 54, Form NJ-1040), New Jersey Earned Income Tax Credit
Gross Income. Tax is calculated using the current year tax rates.
(Line 56, Form NJ-1040), Excess NJ UI/WF/SWF Withheld
Subtract your Credit for Income Taxes Paid to Other
(Line 57, Form NJ-1040), Excess NJ Disability Insurance
Jurisdictions, if any. Enter the applicable percentage of Line 6 of
Withheld (Line 58, NJ-1040), Excess NJ Family Leave Insurance
the worksheet on each column at Line 16, as indicated. Exception
Withheld (Line 59, NJ-1040), and Wounded Warrior Caregivers
2 only applies if your current year tax payments (Line 14) are at
Credit (Line 60, NJ-1040). The total amount of tax withheld is
least equal to the amounts indicated at Line 16.
considered to have been paid evenly (one-fourth of total amount)
on each payment due date, unless you can show otherwise.
Exception 3 – Exception 3 is calculated by multiplying the actu-
Include this amount with the amount of any estimated tax pay-
al portion of NJ Gross Income that is applicable to each period
ments on each of the columns on Part I. The total amount of cred-
shown, by the annualization amounts at Line 2 of the worksheet.
it, if any, from your prior year tax return should be included in the
Subtract the total amount of exemptions from your Annualized
amount of your payment on Column A. If each column on Line
Income on Line 3. Calculate tax on this amount. Subtract your
6 is greater than the corresponding column on Line 5, do not com-
Credit for Income Taxes Paid to Other Jurisdictions, if any. Enter
plete the rest of this form.
the applicable percentage of each amount from Line 8 of the
worksheet on the corresponding column at Line 17 as indicated.
Line 7 – Complete Lines 7 through 13 for one column before
Exception 3 only applies if your current year tax payments (Line
completing the next column.
14) are at least equal to the amounts indicated at Line 17.
Line 12 – If Line 12 is zero for all payment periods, you are not
subject to the interest and therefore do not have to file Form NJ-
Exception 4 – Exception 4 is calculated using the tax on the actu-
2210. If you have an underpayment in any column on Line 12,
al amount of NJ Taxable Income that is applicable to each period
complete Part II.
shown. Subtract your Credit for Income Taxes Paid to Other
Jurisdictions, if any. Enter 90% of each amount from Line 4 of the
PART II
worksheet on the corresponding column at Line 18. Exception 4
only applies if your current year tax payments (Line 14) are at
You will not have to pay interest if (1) you have paid your 2018
least equal to the amounts indicated at Line 18.
tax payments (Line 14) on time; and (2) the amount on Line 14 is
equal to or more than the tax calculated under any of the four
exceptions for the same payment period.
Calculating the Interest
Use the table in Option 1 to calculate interest on the amount of the underpayment from page 1, NJ-2210. If your estimated tax payments
for Tax Year 2018 were not paid timely, interest must be calculated based on the Interest Rate Schedule in Option 2.
OPTION 1
A
B
C
D
E
F
G
Q
U
PERIOD
Amount Due
Balance Due
Total Due
Total Paid
Balance
Interest
A
R
(Line 5, NJ-2210)
Previous Qtr.
(Col. A + B)
(Line 6, NJ-2210)
(Col. C - D)
Multiplier
(Col. E x Col. F)
T
E
(Col. E)
R
1.
4/16 – 6/15
.012
2.
6/16 – 9/15
.018
3.
9/16 – 1/15
.024
4.
1/16 – 4/15
.021
TOTAL INTEREST
Column A
Enter the amount due per quarter (Line 5, NJ-2210).
Column B
Enter the balance due (Column E) from the previous quarter.
Column C
Enter the total of Column A plus Column B.
If Column B is negative, subtract Column B from Column A.
Column D
Enter the total estimated tax paid and withheld (Line 6, NJ-2210).
Column E
Subtract Column D from Column C.
Column F
The multiplier is based on the interest rates in effect during each quarter.
Column G
Multiply Column E by the multiplier in Column F. If Column E is negative, enter zero in Column G.
TOTAL INTEREST
Add the interest for each quarter and enter this amount in the block marked TOTAL INTEREST on Line 19,
NJ-2210 and on Line 51, NJ-1040.
OPTION 2
Calculate the interest on the amount of the underpayment on Line 12 from the date the underpayment was incurred to the date the
underpayment was satisfied or the original due date of the final tax return (Form NJ-1040), whichever is earlier. Interest is assessed at the
annual rate of 3% above the average predominant prime rate and is imposed each month or fraction thereof the underpayment exists. The
interest rate will be reviewed quarterly and will only change if there has been a cumulative change of more than 1% since it was last set.
INTEREST RATE SCHEDULE
PERIOD
INTEREST RATE
4/17/18 – 1/15/19
7.25%
1/16/19 – 4/15/19
8.25%
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