Instructions for Form R-210NRA Underpayment of Individual Income Tax Penalty 2018

ADVERTISEMENT
R-210NRA-i (1/19)
2018
Underpayment of Individual Income Tax Penalty
Computation 2018 Taxable Year
Nonresident Professional Athlete
GENERAL INFORMATION
Underpayment Penalty
Revised Statute 47:118 provides for a 12 percent penalty for underpayment of individual income tax. The penalty may be imposed if
you did not pay enough estimated tax for the year or did not make estimated payments on time or in the required amount. The penalty
is imposed on each underpayment for the number of days it was unpaid.
Filing an Estimate and Paying the Tax for Calendar Year Taxpayers
If you file a return on a calendar year basis and are required to file Form IT-540ES, Louisiana Estimated Tax Declaration Vouchers for
Individuals, you are generally required to file estimated tax by April 15, and to pay the tax in four installments. If you are not required
to file estimated tax until later in the year because of a change in income, you may be required to pay in fewer installments. Below is a
table that shows the due date(s) for estimated tax and the maximum number of installments required.
Period in Which
Due Date
Maximum Number of
Requirements are First Met
of Payment
Installments Required
Between Jan 1 and April 1
April 15, 2018
4
After April 1 and before June 2
June 15, 2018
3
After June 1 and before Sept 2
Sept. 15, 2018
2
After September 1
Jan. 15, 2019
1
Items Needed to Complete Form R-210NRA, Underpayment of Individual Income Tax Penalty Computation, for 2018
1.
A copy of your 2017 Louisiana individual income tax return.
2.
Your 2018 Louisiana individual income tax return.
3.
The dates and amounts of your declaration payments made for the 2018 taxable year.
4.
The date and amount of your extension payment for 2018, if any.
Penalty Exceptions
You will need to complete Exception 1 on page 3 to determine if you are possibly subject to an underpayment penalty for any period.
Exception 1
The underpayment of estimated tax penalty will not be imposed on any installment if no declaration of estimated tax is required to be filed
because the taxpayer did not reasonably expect for their taxes to exceed $1,000 for single filers and $2,000 for joint filers as required
by Revised Statute 47:116(A).
If you do not meet Exception 1, complete Form R-210NRA and attach it to your 2018 Form IT-540B-NRA, Louisiana Nonresident
Professional Athlete Individual Income Tax Return. Exceptions 2 through 5 determine if the amount that was paid for a period satisfies
the required period payment as calculated by the specific exception. You may apply a different exception to any period. Once you have
determined an exception exists, you do not have an underpayment for that period.
Exceptions 2 through 5
The underpayment of estimated tax penalty will not be imposed on any installment if the total amount of all estimated tax payments made
on or before the last date prescribed for the payment of the installment equals or exceeds the lesser of the following:
1.
The amount which would have been required to be paid on or before the date if the estimated tax were whichever of the following
is the least.
The tax due on the preceding tax year’s return, if the individual filed a tax return for the preceding year and the year was a
taxable year of 12 months (See Exception 2);
The tax that would have been due for the preceding taxable year based on the current tax year’s rates, the taxpayer’s filing
status and number of dependents. (See Exception 3); or
Ninety percent (66.66 percent for qualified farmers and fisherman) of the tax due on an annualized basis for each quarterly
period (See Exception 4).
2.
Ninety percent of the tax computed at the applicable rates on the basis of the actual taxable income for the months in the taxable
year ending before the month in which the installment is required to be paid (See Exception 5).
Applying Credits and Withholding
When applying credits and withholding to a period, you may equally distribute the amounts to each period based upon the number of
months in the period. You may use the actual date when those amounts were withheld or the date on which the credit was earned. Any
extension payment made on or before January 15, 2019, must be applied to the fourth installment period. Any credit carry forward from
the 2017 tax year to the 2018 tax year must be included in the first installment period.
Page 1
R-210NRA-i (1/19)
2018
Underpayment of Individual Income Tax Penalty
Computation 2018 Taxable Year
Nonresident Professional Athlete
GENERAL INFORMATION
Underpayment Penalty
Revised Statute 47:118 provides for a 12 percent penalty for underpayment of individual income tax. The penalty may be imposed if
you did not pay enough estimated tax for the year or did not make estimated payments on time or in the required amount. The penalty
is imposed on each underpayment for the number of days it was unpaid.
Filing an Estimate and Paying the Tax for Calendar Year Taxpayers
If you file a return on a calendar year basis and are required to file Form IT-540ES, Louisiana Estimated Tax Declaration Vouchers for
Individuals, you are generally required to file estimated tax by April 15, and to pay the tax in four installments. If you are not required
to file estimated tax until later in the year because of a change in income, you may be required to pay in fewer installments. Below is a
table that shows the due date(s) for estimated tax and the maximum number of installments required.
Period in Which
Due Date
Maximum Number of
Requirements are First Met
of Payment
Installments Required
Between Jan 1 and April 1
April 15, 2018
4
After April 1 and before June 2
June 15, 2018
3
After June 1 and before Sept 2
Sept. 15, 2018
2
After September 1
Jan. 15, 2019
1
Items Needed to Complete Form R-210NRA, Underpayment of Individual Income Tax Penalty Computation, for 2018
1.
A copy of your 2017 Louisiana individual income tax return.
2.
Your 2018 Louisiana individual income tax return.
3.
The dates and amounts of your declaration payments made for the 2018 taxable year.
4.
The date and amount of your extension payment for 2018, if any.
Penalty Exceptions
You will need to complete Exception 1 on page 3 to determine if you are possibly subject to an underpayment penalty for any period.
Exception 1
The underpayment of estimated tax penalty will not be imposed on any installment if no declaration of estimated tax is required to be filed
because the taxpayer did not reasonably expect for their taxes to exceed $1,000 for single filers and $2,000 for joint filers as required
by Revised Statute 47:116(A).
If you do not meet Exception 1, complete Form R-210NRA and attach it to your 2018 Form IT-540B-NRA, Louisiana Nonresident
Professional Athlete Individual Income Tax Return. Exceptions 2 through 5 determine if the amount that was paid for a period satisfies
the required period payment as calculated by the specific exception. You may apply a different exception to any period. Once you have
determined an exception exists, you do not have an underpayment for that period.
Exceptions 2 through 5
The underpayment of estimated tax penalty will not be imposed on any installment if the total amount of all estimated tax payments made
on or before the last date prescribed for the payment of the installment equals or exceeds the lesser of the following:
1.
The amount which would have been required to be paid on or before the date if the estimated tax were whichever of the following
is the least.
The tax due on the preceding tax year’s return, if the individual filed a tax return for the preceding year and the year was a
taxable year of 12 months (See Exception 2);
The tax that would have been due for the preceding taxable year based on the current tax year’s rates, the taxpayer’s filing
status and number of dependents. (See Exception 3); or
Ninety percent (66.66 percent for qualified farmers and fisherman) of the tax due on an annualized basis for each quarterly
period (See Exception 4).
2.
Ninety percent of the tax computed at the applicable rates on the basis of the actual taxable income for the months in the taxable
year ending before the month in which the installment is required to be paid (See Exception 5).
Applying Credits and Withholding
When applying credits and withholding to a period, you may equally distribute the amounts to each period based upon the number of
months in the period. You may use the actual date when those amounts were withheld or the date on which the credit was earned. Any
extension payment made on or before January 15, 2019, must be applied to the fourth installment period. Any credit carry forward from
the 2017 tax year to the 2018 tax year must be included in the first installment period.
Page 1
Instructions – Form R-210NRA
Section 1 — Required annual payment computation
The required annual payment is the lesser of: 90 percent of your 2018 Louisiana income tax liability OR 100 percent of your 2017
Louisiana income tax liability. The underpayment period is from the date the installment was required to be paid to whichever of the
following dates is earlier: the 15th day of the fourth month following the close of the taxable year OR the date on which any portion of
the underpayment is paid limited to the payment amount.
Line 1 — Ninety percent of current year’s tax liability. Use the steps below to compute this amount from your 2018 Form IT-540B-NRA.
1.
Enter the amount of your Louisiana Income Tax from your 2018 Form IT-540B-NRA, Line 12.
.00
2.
Enter the total amount of Nonrefundable Credits from your 2018 Form IT-540B-NRA, Lines 13 and 20.
.00
3.
Enter the total amount of Refundable Credits from your 2018 Form IT-540B-NRA, Lines 17 and 23.
.00
4.
Subtract Lines 2 and 3 from Line 1 and enter the result.
.00
5.
Multiply Line 4 by 90 percent and enter the result here and on Form R-210NRA, Line 1.
.00
Line 2 — One hundred percent of previous year’s tax liability. Use the steps below to compute this amount from your 2017 Form IT-540B-NRA.
1.
Enter the amount of your Louisiana Income Tax from your 2017 Form IT-540B-NRA, Line 12.
.00
2.
Enter the amount of Nonrefundable Credits from your 2017 Form IT-540B-NRA, Line 13 and 20.
.00
3.
Enter the total amount of Refundable Credits from your 2017 Form IT-540B-NRA, Lines 17 and 23.
.00
4.
Subtract Lines 2 and 3 from Line 1 and enter the result here and on Form R-210NRA, Line 2.
.00
Line 3 — On Form R-210NRA, Line 3 enter the amount of Line 1 or Line 2, whichever is smaller. If no return was filed for 2017, use the
amount from Form R-210NRA, Line 1.
Line 4 — Number of installments. Generally, a person is required to make four installments beginning on April 15, 2018. You may be
required to pay in fewer installments if you had a change in income. Enter the number of installments required to be paid. (See General
Information, “Filing an Estimate.”)
Section 2 – Underpayment computation
Line 5 — Required payment - From Form R-210NRA Section 1, divide the amount on Line 3 by the amount on Line 4. Round to nearest
dollar and enter the result in the appropriate columns.
Line 6 — Amount paid for each period - For each period, enter the amounts paid for estimated tax, withholding, and credit carry forward.
Include any extension payment made on or before January 15, 2019, in the last period. (See General Information, “Applying Credits And
Withholding.”)
Line 7 — Carryforward - Overpayment or underpayment from previous period shown on Line 9 of each column. Carryforward amounts
from the previous period can be a positive number or a negative number. Note: No carryforward amount can be shown for the first period.
Example:
04/15/18
06/15/18
09/15/18
01/15/19
Required payment - Amount on Line 3 divided by amount on Line 4.
400.00
400.00
400.00
400.00
Amount paid for each period
300.00
600.00
350.00
0
Carryforward - No carryforward amount can be shown for the first period.
-100.00
100.00
50.00
Amounts available for period - Add the amount paid for each period plus any
300.00
500.00
450.00
50.00
carryforward amount.
Overpayment (positive number) or Underpayment (negative number)
-100.00
100.00
50.00
-350.00
Line 8 — Amount available for period. Add Lines 6 and 7.
Line 9 — Underpayment or overpayment - Subtract the amount of the required payment on Line 5 in each column from the amount of
payments available for each respective period on Line 8 in each column. A positive number indicates an overpayment for that particular
period. A negative number indicates an underpayment for that particular period. Copy the number on this line to Line 7 in next column.
Page 2
Section 3 – Exceptions
Line 10 — Exception 1
You are not legally responsible for an underpayment penalty if your tax liability does not exceed $1,000, or $2,000 for joint filers. Use
the calculation below to determine if your 2018 tax liability exceeds these guidelines.
Exception 1
1.
Enter the amount from your 2018 Form IT-540B-NRA, Line 12.
.00
2.
Enter the total amount from your 2018 Form IT-540B-NRA, Lines 13 and 20.
.00
3.
Enter the total amount from your 2018 Form IT-540B-NRA, Lines 17 and 23 through 27.
.00
4.
Subtract Lines 2 and 3 from Line 1 and enter the result.
.00
5.
Enter any extension payment(s) included on your 2018 Form IT-540B-NRA, Line 27
that were made after January 15, 2019.
.00
6.
Add Line 4 to Line 5 and enter result here.
.00
7
.
If your filing status is Single, Married Filing Separately, Head of Household, or Qualifying Widow AND the amount on Line 6 above
STOP – NO PENALTY IS DUE.
is less than or equal to $1,000,
If your filing status is Married Filing Joint AND the amount on Line 6 above is less than or equal to $2,000,
8.
STOP – NO PENALTY IS DUE.
If you meet this exception, do not proceed with any other calculations. You do not owe an underpayment penalty.
Line 11 — Exception 2 – Prior Year’s Tax Liability. This exception does NOT apply if you did not file a 2017 IT-540B-NRA.
This exception applies if your 2018 payments (withholding, declarations, and any extension payments made before January 15, 2019)
equal or exceed your 2017 income tax liability for each installment period. Your Louisiana income tax return for 2017 must have covered
a full twelve month taxable year and must have reflected an income tax liability.
Exception 2
Line A — In each column, enter the total amount of payments for the indicated period. Payments include declarations, withholding, and
any extension payment made on or before January 15, 2019.
Line B — Use the amount from Form R-210NRA, Line 2. This is 100% of your 2017 tax liability. Multiply the 2017 tax liability by the
percentage in each column and enter the result.
April 15, 2018
June 15, 2018
Sept. 15, 2018
Jan. 15, 2019
Total amount paid and withheld from January 1, 2018,
A.
through the installment date indicated.
.00
.00
.00
.00
Amount from Form R-210NRA, Line 2 ( _____________ )
25%
50%
75%
100%
2017 tax. Multiply the 2017 tax by the percentage in
B.
each column.
.00
.00
.00
.00
If Line A is greater than or equal to Line B, the period has met the exception. On Form R-210NRA, Line 11 enter “Exception” for each
period exempted. If you have an exception for all periods, you do not owe an underpayment penalty.
Page 3
Line 12 — Exception 3 – Prior Year’s Income. This exception does NOT apply if you did not file a 2017 IT-540B-NRA.
This exception applies if your 2018 payments equal or exceed the tax computed on prior year’s income using 2018 rates and filing status.
Exception 3
Line A — In each column, enter the total amount of payments for the indicated period. Payments include declarations, withholding, and any
extension payment made on or before January 15, 2019.
Line B — Use the following worksheet to compute the amount for Line B.
1.
Enter the amount of your taxable income from your 2017 Form IT-540B-NRA, Line 11.
.00
2.
Compute tax on above amount using 2018 filing status and 2018 Tax
Computation Worksheet shown below.
.00
3.
Enter the amount of 2017 Nonrefundable Credits from Form IT-540B-NRA, Line 13 and 20.
.00
4.
Enter the total amount of 2017 Refundable Credits from Form IT-540B-NRA, Lines 17 and 23.
.00
5.
Subtract Lines 3 and 4 from Line 2.
.00
April 15, 2018
June 15, 2018
Sept. 15, 2018
Jan. 15, 2019
Total amount paid and withheld from January 1, 2018,
A.
through the installment date indicated.
.00
.00
.00
.00
25%
50%
75%
100%
2017 tax. Multiply the 2017 recomputed tax (Line 5
B.
above) by the percentage in each column.
.00
.00
.00
.00
If Line A is greater than or equal to Line B, the period has met the exception. On Form R-210NRA, Line 12 enter “Exception” for each period
exempted. If you have an exception for all periods, you do not owe an underpayment penalty.
2018 Tax Computation Worksheet (Keep this worksheet for your records.)
A Taxable Income: Enter the amount from 2018 Form IT-540B-NRA, Line 11.
A
00
First Bracket: If Line A is greater than $12,500 ($25,000 if filing status is 2 or 5), enter $12,500 ($25,000 if fil-
B
B
00
ing status is 2 or 5). If Line A is less than $12,500 ($25,000 if filing status is 2 or 5), enter amount from Line A.
Combined Personal Exemption – Standard Deduction: If your filing
C1
C1
00
status is 2, 4, or 5, enter $9,000; if 1 or 3, enter $4,500.
Credit for Dependents: Enter $1,000 for taxpayers and/or spouses
C2
C2
who are 65 or over, or blind, and for each dependent claimed on Form
00
IT-540B-NRA, Line 6C.
C3 Total: Add Lines C1 and C2, and enter the result.
C3
00
D Ratio: Enter the ratio from Form IT-540B-NRA, Line 9.
D
%
E Allowable Deduction: Multiply Line C3 by the ratio on Line D, and enter the result.
E
TAX
00
Taxable First Bracket: Subtract Line E from Line B. Multiply balance by 2% and enter the result in the
2%
F
F
00
00
TAX column.
Rate
Second Bracket: Subtract Line B from Line A; and, if the balance is greater than zero, enter the balance or
4%
G
$37,500 or $75,000 if filing status is 2 or 5, whichever is less. Note: Reduce this amount by the amount that Line
G
00
00
Rate
E exceeds Line B. Multiply balance by 4%, and enter the result in the TAX column.
Third Bracket: Subtract $50,000 or $100,000 if filing status is 2 or 5 from Line A, and enter the balance. If less
6%
H
H
00
00
Rate
than zero, enter “0.” Multiply the balance by 6%, and enter the result in the TAX column.
I
Total Tax: Add the amounts in the TAX column on Lines F, G, and H. Enter here and on Line 2 above.
I
00
Page 4
Line 13
Exception 4 – Annualized Income
quarters. This exception applies if your 2018 payments equal
This exception provides for annualizing the income for the 1
, 2
, and 3
st
nd
rd
or exceed 90 percent of the tax computed on annualized income for the period ending based on calendar quarters. Important:
Except for the first installment period, the remaining installment periods do not coincide with calendar quarters. You must
be careful when calculating your payments for each quarter. “Annualized income” means the actual income (Federal Adjusted Gross
Income) received during the period.
For each column, compare the amount on Line L to the amount on Line M. If Line M is equal to or greater than the amount on Line L,
you have met the exception for that period. If using this exception, please attach a schedule indicating your computation for the federal
income tax deduction taken on Line D. On Form R-210NRA, Line 13 enter “Exception” for each period exempted. If you have an excep-
tion for all periods, you do not owe an underpayment penalty. Note: If you are a farmer or fisherman, on Line K substitute 16.67% for
the period ending 03/31/18; 33.33% for the period ending 06/30/18; and 50% for the period ending 09/30/18.
01/01/18
01/01/18
01/01/18
through
through
through
03/31/18
06/30/18
09/30/18
A Enter the amount of your Federal Adjusted Gross Income for each period.
A
.00
.00
.00
B Annualization factors
B
4
2
1.33
C Multiply Line A by Line B.
C
.00
.00
.00
Enter the amount of federal income tax associated with the income for each
D
D
period.
.00
.00
.00
E Multiply Line D by corresponding annualization factor on Line B.
E
.00
.00
.00
F Subtract Line E from Line C.
F
.00
.00
.00
For the amounts on Line F, determine the correct Louisiana tax based on filing
G
status and number of exemptions claimed on your 2018 Form IT-540B-NRA,
G
Line 6D.
.00
.00
.00
Enter the amount of nonrefundable and refundable credits associated with
H
H
each period. Refer to your 2018 Form IT-540B-NRA, Lines 13, 17, 20, and 23.
.00
.00
.00
I
Multiply Line H by corresponding annualization factor on Line B.
I
.00
.00
.00
J Subtract Line I from Line G.
J
.00
.00
.00
K Applicable percentage - (Farmers and fishermen see instructions above.)
K
22.5%
45%
67.5%
L Multiply Line J by Line K.
L
.00
.00
.00
Enter the total of credit carry forward, declarations and withholding associ-
ated with each period. First, second, and third period declaration payments
M
M
paid during the extended time to file should be attributed to their respective
periods.
.00
.00
.00
Page 5

Download Instructions for Form R-210NRA Underpayment of Individual Income Tax Penalty 2018

269 times
Rate
4.5(4.5 / 5) 13 votes
ADVERTISEMENT
Page of 6