Instructions for Form DE2210 "Delaware Underpayment of Estimated Taxes" - Delaware

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DELAWARE FORM 2210
Delaware Underpayment of Estimated Taxes
INSTRUCTIONS
PURPOSE OF THE FORM
SPECIFIC INSTRUCTIONS
Use Form DE2210 to compute your penalty for underpaying your
The DE2210 is divided into 5 parts as follows:
1.
The Required Annual Payment
estimated taxes. If you choose to compute your penalty using this form
2.
The Short Method
and a penalty due is calculated OR if you use Part 3 – Annualized
3.
Annualized Income Installment Method
Installment Method:
4.
Computation of the Over/Underpayment
Check the “Form DE2210 Attached” box on the front of
5.
Computation of the Penalty
your Delaware personal income tax return and
Attach your completed Form DE 2210 to your return.
1.
The Required Annual Payment.
Do not submit a Federal Form 2210 instead of a Delaware Form DE2210.
Use this part to figure the amount of your required annual payment.
Do not submit computer worksheets in lieu of the Form DE2210.
Note: line numbers in parentheses refer to lines on the Non-Resident Form.
A. Enter 90% of Line 16 (Line 47) from your 2019 Delaware Return.
Use of Form
B. Enter 100% of the Tax Balance on Line 16 of your 2018 Delaware
return (Line 47 of 2018) (110% if your 2018 Delaware AGI is more than
You may choose to use the Short Method (Part 2) of this form if you made
.
$150,000 or $75,000 if filing status is 3)
equal estimated payments on or before the dates they were due or made no
C. Enter the smaller of Line A or B. This is your required annual
estimated tax payments. You may choose to use the Annualized Method
payment, which should have been made in 4 equal payments.
D. Enter the total amount of Delaware tax withheld, S Corporation
(Part 3) of this form if your income was earned unevenly throughout the
payments made on your behalf, and approved Refundable
year. Resident filers using Filing Status 4 should combine (net) the amounts
Business Credits.
in both columns of their tax return before transferring figures to the (create
E. Subtract Line D from Line C. Note: if this amount is $800 or less,
one combined form DE2210 for both spouses).
stop here. You do not owe the penalty.
Who Must Pay the Underpayment Penalty:
2.
The Short Method.
Once you have figured the required annual payment, you may use the
In general, you will owe the penalty for 2019 if you did not pay at least
Short Method ONLY if:
the smaller of:
a.
You made no estimated payments; or
1. 90% of the Tax Balance shown on Line 16 of the 2019 Delaware
b. You paid estimated tax in 4 equal amounts on or before the due
Resident Tax Return (Line 47 on the Non-Resident Form); or
dates (April 30, June 15th, September 17th, and January 15th).
2. 100% of the Tax Balance shown on Line 16 of your 2018 return
You may not use the Short Method if you made any of the payments late.
(Line 47 on the Non-Resident Return). Note: If you are not a
Farmer
You may not use the Short Method if any capital gain tax payments
or fisherman and your Adjusted Gross Income (AGI) on your
2018
were made on your behalf.
return is in excess of $150,000 ($75,000 if married Filing Separate
Returns, Filing Status 3), you must use 110% of the 2018 Tax
Line by Line instructions:
Balance.
F.
Enter the total of your estimated tax payments.
The penalty is figured separately for each installment due date.
G.
Enter the total amount of Delaware tax withheld, S Corp
Therefore, you may owe the penalty for an earlier due date even if you
payments made on your behalf, and approved Refundable
paid enough tax to make up the underpayment (even if you are due a
Business Credits.
refund when you file your return).
H. Add lines F and G.
Exceptions to the Penalty:
I.
Total Underpayment for the year (Subtract Line H from Line C).If
zero or less stop here. You do not owe the penalty.
You will not have to pay the penalty if either:
J.
Multiply Line I by 0.12.
K.
If the amount on Line I was paid on or after April 30, 2020 enter
1. You had no Delaware tax liability in the previous year (Line 16
zero (0). If it was paid before April 30, 2020, count the number of
on the 2018 Resident return or Line 47 on the Non-Resident
days from the date you paid the amount on Line I to April 30,
form); or
2020 multiply the number of days by 0.0005 and then multiply
2. The tax liability minus non-refundable credits (Line 16 on the 2018
that number by the amount on Line I. Enter the results on Line K.
Resident return or Line 47 on the Non-Resident form) minus
refundable credits (Line 21 on the 2018 Resident return or Line 52
L.
Subtract Line K from Line J. This is your penalty for
on the 2018 Non-Resident return) is less than $800; or
underpayment of estimated taxes. Add this amount to the other
3. You were a Part-Year resident during 2019; or
penalties and interest due on Line 25 of the Resident return and
4. You derived at least 2/3 of your Gross Income from farming or
Line 56 of the Non-Resident return.
fishing, and paid the total estimated tax due by January 15, 2020,
or filed your return by March 1, 2020 AND paid the total tax due
3.
The Annualized Installment Method.
at that time.
This method should be used by individuals whose income is earned in
Waiver of the Penalty:
an uneven fashion throughout the year. Examples would be receiving
large capital gains or bonuses late in the year.
Once the penalty has been assessed you may request a waiver of the penalty
by writing to: Tax Conferee Delaware Division of Revenue
To use this form, enter the income and deductions applicable to each
P O Box 8714 Wilmington, DE 19899-8714
period as follows:
Reasons for requesting a waiver are:
Column 1 enter the income/deductions for the period 01/01/2019 through 03/31/2019.
1.
The underpayment was due to a casualty, disaster, or other
unusual circumstance (explain the circumstance); or
Column 2 enter the income/deductions for the period 01/01/2019 through 05/31/2019.
2.
In 2018 or 2019 you retired after age 62 or became disabled.
Column 3 enter the income/deductions for the period 01/01/2019 through 08/31/2019.
If one of these reasons applies to you, DO NOT check the 2210 indicator
box and DO NOT submit the form. You will be given a chance to request a
Column 4 enter the income/deductions for the period 01/01/2019 through 12/31/2019.
waiver after the penalty has been assessed.
-
1-
DELAWARE FORM 2210
Delaware Underpayment of Estimated Taxes
INSTRUCTIONS
PURPOSE OF THE FORM
SPECIFIC INSTRUCTIONS
Use Form DE2210 to compute your penalty for underpaying your
The DE2210 is divided into 5 parts as follows:
1.
The Required Annual Payment
estimated taxes. If you choose to compute your penalty using this form
2.
The Short Method
and a penalty due is calculated OR if you use Part 3 – Annualized
3.
Annualized Income Installment Method
Installment Method:
4.
Computation of the Over/Underpayment
Check the “Form DE2210 Attached” box on the front of
5.
Computation of the Penalty
your Delaware personal income tax return and
Attach your completed Form DE 2210 to your return.
1.
The Required Annual Payment.
Do not submit a Federal Form 2210 instead of a Delaware Form DE2210.
Use this part to figure the amount of your required annual payment.
Do not submit computer worksheets in lieu of the Form DE2210.
Note: line numbers in parentheses refer to lines on the Non-Resident Form.
A. Enter 90% of Line 16 (Line 47) from your 2019 Delaware Return.
Use of Form
B. Enter 100% of the Tax Balance on Line 16 of your 2018 Delaware
return (Line 47 of 2018) (110% if your 2018 Delaware AGI is more than
You may choose to use the Short Method (Part 2) of this form if you made
.
$150,000 or $75,000 if filing status is 3)
equal estimated payments on or before the dates they were due or made no
C. Enter the smaller of Line A or B. This is your required annual
estimated tax payments. You may choose to use the Annualized Method
payment, which should have been made in 4 equal payments.
D. Enter the total amount of Delaware tax withheld, S Corporation
(Part 3) of this form if your income was earned unevenly throughout the
payments made on your behalf, and approved Refundable
year. Resident filers using Filing Status 4 should combine (net) the amounts
Business Credits.
in both columns of their tax return before transferring figures to the (create
E. Subtract Line D from Line C. Note: if this amount is $800 or less,
one combined form DE2210 for both spouses).
stop here. You do not owe the penalty.
Who Must Pay the Underpayment Penalty:
2.
The Short Method.
Once you have figured the required annual payment, you may use the
In general, you will owe the penalty for 2019 if you did not pay at least
Short Method ONLY if:
the smaller of:
a.
You made no estimated payments; or
1. 90% of the Tax Balance shown on Line 16 of the 2019 Delaware
b. You paid estimated tax in 4 equal amounts on or before the due
Resident Tax Return (Line 47 on the Non-Resident Form); or
dates (April 30, June 15th, September 17th, and January 15th).
2. 100% of the Tax Balance shown on Line 16 of your 2018 return
You may not use the Short Method if you made any of the payments late.
(Line 47 on the Non-Resident Return). Note: If you are not a
Farmer
You may not use the Short Method if any capital gain tax payments
or fisherman and your Adjusted Gross Income (AGI) on your
2018
were made on your behalf.
return is in excess of $150,000 ($75,000 if married Filing Separate
Returns, Filing Status 3), you must use 110% of the 2018 Tax
Line by Line instructions:
Balance.
F.
Enter the total of your estimated tax payments.
The penalty is figured separately for each installment due date.
G.
Enter the total amount of Delaware tax withheld, S Corp
Therefore, you may owe the penalty for an earlier due date even if you
payments made on your behalf, and approved Refundable
paid enough tax to make up the underpayment (even if you are due a
Business Credits.
refund when you file your return).
H. Add lines F and G.
Exceptions to the Penalty:
I.
Total Underpayment for the year (Subtract Line H from Line C).If
zero or less stop here. You do not owe the penalty.
You will not have to pay the penalty if either:
J.
Multiply Line I by 0.12.
K.
If the amount on Line I was paid on or after April 30, 2020 enter
1. You had no Delaware tax liability in the previous year (Line 16
zero (0). If it was paid before April 30, 2020, count the number of
on the 2018 Resident return or Line 47 on the Non-Resident
days from the date you paid the amount on Line I to April 30,
form); or
2020 multiply the number of days by 0.0005 and then multiply
2. The tax liability minus non-refundable credits (Line 16 on the 2018
that number by the amount on Line I. Enter the results on Line K.
Resident return or Line 47 on the Non-Resident form) minus
refundable credits (Line 21 on the 2018 Resident return or Line 52
L.
Subtract Line K from Line J. This is your penalty for
on the 2018 Non-Resident return) is less than $800; or
underpayment of estimated taxes. Add this amount to the other
3. You were a Part-Year resident during 2019; or
penalties and interest due on Line 25 of the Resident return and
4. You derived at least 2/3 of your Gross Income from farming or
Line 56 of the Non-Resident return.
fishing, and paid the total estimated tax due by January 15, 2020,
or filed your return by March 1, 2020 AND paid the total tax due
3.
The Annualized Installment Method.
at that time.
This method should be used by individuals whose income is earned in
Waiver of the Penalty:
an uneven fashion throughout the year. Examples would be receiving
large capital gains or bonuses late in the year.
Once the penalty has been assessed you may request a waiver of the penalty
by writing to: Tax Conferee Delaware Division of Revenue
To use this form, enter the income and deductions applicable to each
P O Box 8714 Wilmington, DE 19899-8714
period as follows:
Reasons for requesting a waiver are:
Column 1 enter the income/deductions for the period 01/01/2019 through 03/31/2019.
1.
The underpayment was due to a casualty, disaster, or other
unusual circumstance (explain the circumstance); or
Column 2 enter the income/deductions for the period 01/01/2019 through 05/31/2019.
2.
In 2018 or 2019 you retired after age 62 or became disabled.
Column 3 enter the income/deductions for the period 01/01/2019 through 08/31/2019.
If one of these reasons applies to you, DO NOT check the 2210 indicator
box and DO NOT submit the form. You will be given a chance to request a
Column 4 enter the income/deductions for the period 01/01/2019 through 12/31/2019.
waiver after the penalty has been assessed.
-
1-
DELAWARE FORM 2210
Delaware Underpayment of Estimated Taxes
INSTRUCTIONS
Line by Line Instructions:
29.
Enter the amount of Estimated and Capital Gain Tax Payments
made on your behalf FOR EACH PERIOD ONLY. In Column 1,
(Line numbers in parenthesis refer to the Non-Resident Return).
enter the payments for the period January 1st through April 30th.
1.
Non-Resident indicator. If you are a Non-Resident or Part year
In the second column enter the payments made for the period May
Resident using the Non-Resident tax form, put an “X” in this
st
1
through June 15th. In the third column enter the payments made
box. Part-year Residents using the Non-Resident return should
for the period June 16 through September 17
th
. In the fourth column
follow the instructions for Non-Residents.
enter the payments made for the period September 18
th
through
2.
Enter your Delaware AGI from Line 1 (Line 37) of your 2019
th
January 15
.
Delaware return for the period indicated. Example: in the third
column enter your AGI for the period January 1, 2019 through
30. FOR EACH PERIOD ONLY. Enter the amount of Delaware
August 31, 2019.
withholding, S Corporation payments and Refundable Business
3.
This line has been pre-filled.
Credits.
4.
Multiply Line 2 by Line 3 for each column (this is your
31. Add Lines 29 and 30.
annualized income for each period).
5.
Enter your Delaware itemized deductions for each period. If
NOTE: Complete Lines 32 through Line 38 down each column
you did not itemize your deductions, enter zero (0) and skip to
before going to the next column.
Line 8.
32. Blank for Column 1. Enter previous Line 38 amount for all other
6.
This Line has been pre-filled.
columns (i.e. Column 2 equals Line 38 Column 1, Column 3 equals
7.
Multiply Line 5 by Line 6 for each column.
Line 38 Column 2, etc.).
8.
Enter the Delaware standard deduction and additional standard
deduction (if applicable) amounts. Note: the same number
33. Leave Column 1 blank. For all other columns, add Line 31 and Line
should be entered in each column.
32.
9.
Delaware Deductions. If you itemized deductions, enter the
34. Leave Column 1 blank. For all other columns, add amounts from
amounts from Line 7 in each column. If you used the Delaware
Line 36 and 37 of the previous Column (i.e. Column 2 equals Line 36
standard deduction, enter the amount from Line 8 in each
Column 1 plus Line 37 Column 1, etc.).
column.
10. Delaware Taxable Income. Subtract Line 9 from Line 4.
35. For Column 1, only enter the amount from Line 31. For other
11. Tax. Using the tax table or tax schedule, figure the tax onthe
columns, subtract Line 34 from Line 33. If zero (0) or less, enter
amount on Line 10 for each column.
zero (0).
12. Tax on Lump Sum. See the instructions for tax on lump sum
36. Leave Column 1 blank. For all other column, if Line 35=0, then
distributions (Line 7) in the Resident Instruction Booklet
subtract Line 33 from Line 34. Otherwise, enter zero (0).
(Page 6).
37. Underpayment. If Line 28 is equal to or larger than Line 35, subtract
13. This is your total tax. Add Lines 11 and 12.
Line 35 from Line 28 and go to Line 32 of the next column.
14. Non-Residents only. Multiply Line 13 time the Proration
Otherwise, go to Line 38.
Percentage from the center of Line 42 of your tax return.
15. Enter the total personal credit amount. Include any personal
38. Overpayment. If Line 35 is larger than Line 28, subtract Line 27
credits for being 60 or over (if applicable).
from Line 35. Then go to Line 32 of the next column.
16. Non-Residents only. Multiply Line 15 by the proration
5.
Computing the Penalty.
percentage from the center of Line 42 of your tax return.
17. Other non-refundable credits. Add Lines 10,11,12,13 & 14 of
Figure the penalty by applying the appropriate rate against each
the Resident (or Lines 44 & 45 of Non-Resident) tax return and
underpayment shown on Line 37 for as long as an underpayment
enter here.
remains. Adjust this amount as payments were made.
18. Residents, add Line 15 and Line 17 and subtract the total from
39. This lists the dates the payments on Line 37 are due.
Line 13. Non-residents and part year residents, add Line 16 to
Line 17 and subtract the total from Line 14.
40. Compute the number of days between the due date on Line 39 and
19. Multiplier. This number has been pre-filled.
the date the amount on Line 37 is paid or April 30, 2019 whichever is
20. Multiply Line 18 by the amount on Line 19 for each column.
earlier. Stop the computation when the total underpayment for the
NOTE: From this point on, complete Lines 21 through Line 27
year has been paid or April 30, 2019 (whichever is earlier). Repeat
down each column before going to the next column.
the computation for each column. (NOTE: If the amount due is not
21. Leave the first column blank. Enter the sum of all previous
paid with one payment, the penalty for the period should be figured
Lines 27 for the remaining columns (in column 3 you are
on a separate sheet and the total entered on this Line. For example,
adding Line 27, Column 1 plus Line 27, Column 2).
if Line 37 column 1 shows an underpayment of $300, and $200 was
22. Subtract Line 21 from Line 20. If 0 or less, enter 0.
th
th
paid on June 17
, and $200 was paid on September 16
, the penalty
th
23. Enter 1/4
of your Required Annual Payment from Part 1,
would be figured for 48 days on $300, and 93 days on $100. The
Line C.
remaining $100 of the payment made in September is available to be
24. Blank for the first column. For all other columns enter the
th
applied to a June 17
underpayment, if necessary.)
amount from Line 26 of the previous column.
41. Multiply Line 40 by 0.0005.
25. Add Line 23 and Line 24.
26. Subtract Line 22 from Line 25. If zero or less, enter zero (0).
42. Multiply Line 41 by Line 37. This is the penalty for the period.
27. Enter the Smaller of Line 22 or 25 here and on Line 28.
Repeat the computation for each column.
43. Add the columns together to determine the total penalty.
4.
Computing the over/under payment
Enter the amount of the penalty you computed by either the Short Method
In this section you will compute the amount of your
or the Annualized Method on Line 25 of the Resident Return or Line 56 of
over/under payment for each period.
the Non-Resident return.
28. Enter the amount from Part 3, Line 27.
Please remember to check the Form DE2210 Attached box section and
submit a copy of this form with your return. Checking the box without
submitting a form will unnecessarily delay the processing of your return.
(Revised 11/2019)
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