General Instructions Future Developments What’s New Elective payment election. Reminders Saturday, Sunday, or legal holiday. Additional Medicare Tax. Net Investment Income Tax. Premium tax credit. Forms for the qualified business income deductions. Tax Withholding Estimator. Purpose of Form Who Must File Form 2210 The IRS Will Figure the Penalty for You Other Methods of Figuring the Penalty Who Must Pay the Underpayment Penalty Special rules for certain individuals. Farmers and fishermen. Higher income taxpayers. Penalty figured separately for each required payment. Return. Exceptions to the Penalty Estates and trusts. Farmers and fishermen. Waiver of Penalty Federally declared disaster. Specific Instructions Part I—Required Annual Payment Exception. Line 1 Line 2 Line 3 Line 6 Filers of Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands. Line 8 Part III—Penalty Computation Form 1040-NR filers. Section A—Figure Your Underpayment Line 10 Line 11 Table 1—List your estimated tax payments for 2023. Entries on Form 2210. Line 17 Section B—Figure the Penalty Total days per rate period. Table 4-1. Calendar To Determine the Number of Days a Payment Is Late Worksheet for Form 2210, Part III, Section B—Figure the Penalty (Penalty Worksheet) Worksheet for Form 2210, Part III, Section B—Figure the Penalty (Penalty Worksheet) Line 1b. Line 3. Line 4. Schedule AI—Annualized Income Installment Method Additional information. Individuals filing Form 1040-NR. Part I—Annualized Income Installments Line 1 Line 2 Line 6 Line 7 Line 9 2023 Estimated Tax. Part I, Line 4 Qualified Dividends and Capital Gain Tax Worksheet 2023 Estimated Tax. Part I, Line 4 Qualified Dividends and Capital Gain Tax Worksheet (Continued) Line 12 Line 14 Line 16 Line 18 Part II—Annualized Self-Employment Tax Line 28 Line 30 Instructions for Form 2210 - Notices Paperwork Reduction Act Notice. Instructions for Form 2210 (2023) Underpayment of Estimated Tax by Individuals, Estates, and Trusts Section references are to the Internal Revenue Code unless otherwise noted. 2023 General Instructions Future Developments For the latest information about developments related to Form 2210 and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form2210. What’s New Elective payment election. Beginning with tax year 2023, certain applicable entities and electing taxpayers can elect to treat certain Inflation Reduction Act of 2022 and Creating Helpful Incentives to Produce Semiconductors Act of 2022 credits as elective payments. While resulting overpayments may result in refunds, the required annual payment amount is reduced only by the amount of the credit allowed for the current year. Under the election, the unused current year credit is treated as a payment made on the later of the due date of the return (without extension) or the date on which the return is filed. It does not reduce the required annual payment amount and is not counted as an estimated tax payment for the year. For more information about the elective payment election, see Form 3800, General Business Credit, and its instructions. Reminders Saturday, Sunday, or legal holiday. Generally, if a due date for 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 performed no later than the next day that isn't a Saturday, Sunday, or legal holiday. A legal holiday includes any legal holiday in the District of Columbia. These instructions make the adjustment for Saturdays, Sundays, and federal legal holidays. Additional Medicare Tax. A 0.9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income over a threshold amount based on your filing status. See Form 8959. Net Investment Income Tax. You may be subject to Net 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 adjusted gross income over a threshold amount. See Form 8960. 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 whose family member enrolls, in a qualified health plan offered through a Health Insurance Marketplace (also called an Exchange). The PTC provides financial assistance to pay the premiums by reducing the amount of tax you owe, giving you a refund, or increasing your refund amount. Advance payment of the PTC may be made through the Health Insurance Marketplace directly to your insurance provider. If you received premium assistance through advance payments of the PTC in 2023, and the amount advanced exceeded the amount of PTC you can take, you could be subject to a penalty for underpaying your estimated tax. For example, you completed Form 8962, Premium Tax Credit, and have additional income tax liability because too much was advanced to your insurance provider. For more information about the PTC and advance payments of the PTC, see Form 8962 and Pub. 974. Forms for the qualified business income deductions. See Form 8995-A, Qualified Business Income Deduction, or Form 8995, Qualified Business Income Deduction Simplified Computation, and their separate instructions for information about your qualified business income deduction. Tax Withholding Estimator. To determine adjustments to your withholdings, go to the Tax Withholding Estimator at IRS.gov/W4App. Purpose of Form Use Form 2210 to see if you owe a penalty for underpaying your estimated tax. The IRS will generally figure your penalty for you and you should not file Form 2210. You can, however, use Form 2210 to figure your penalty if you wish and include the penalty on your return. There are some situations in which you must file Form 2210, such as to request a waiver. Who Must File Form 2210 Use the flowchart at the top of Form 2210, page 1, to see if you must file this form. If box B, C, or D in Part II is checked, you must figure the penalty yourself and attach Form 2210 to your return. The IRS Will Figure the Penalty for You If you didn't check box B, C, or D in Part II, you don't need to figure the penalty. The IRS will figure any penalty for underpayment of estimated tax and send you a bill. If you file your return by April 15, 2024, no interest will be charged on the penalty if you pay the penalty by the date shown on the bill. If you want us to figure the penalty for you, complete your return as usual. Leave the penalty line on your return blank; don't file Form 2210. Other Methods of Figuring the Penalty There are different ways to figure the correct penalty. You don't have to use the method used on Form 2210 as long as you enter the correct penalty amount on the “Estimated tax penalty” line on your return. However, if you’re required to file Form 2210 because one or more of the boxes in Part II applies, you must complete certain lines and enter the penalty on the “Estimated tax penalty” line on your return. If you use the regular method, complete Part I; check the applicable box(es) in Part II; and complete Part III, Section A, and the penalty worksheet (Worksheet for Form 2210, Part III, Section B—Figure the Penalty). Enter the penalty on Form 2210, line 19, and on the “Estimated tax penalty” line on your tax return. If you use the annualized income installment method, complete Part I; check the applicable box(es) in Part II; and complete Schedule AI and Part III, Section A. Complete the penalty worksheet (Worksheet for Form 2210, Part III, Section B—Figure the Penalty). Enter the penalty on Form 2210, line 19, and on the “Estimated tax penalty” line on your tax return. Who Must Pay the Underpayment Penalty In general, you may owe the penalty for 2023 if the total of your withholding and timely estimated tax payments didn't equal at least the smaller of: 90% of your 2023 tax, or 100% of your 2022 tax. Your 2022 tax return must cover a 12-month period. Special rules for certain individuals. Different percentages are used for farmers and fishermen, and certain higher income taxpayers. Farmers and fishermen. If at least two-thirds of your gross income for 2022 or 2023 is from farming and fishing, substitute 662/3% for 90% in (1) above. See Farmers and fishermen, later, to see if you qualify. Higher income taxpayers. If your adjusted gross income (AGI) for 2022 was more than $150,000 ($75,000 if your 2022 filing status was married filing separately), substitute 110% for 100% in (2) above. Penalty figured separately for each required payment. The penalty is figured separately for each installment due date. Therefore, you may owe the penalty for an earlier due date even if you paid enough tax later to make up the underpayment. This is true even if you’re due a refund when you file your tax return. However, you may be able to reduce or eliminate the penalty by using the annualized income installment method. For details, see Schedule AI Annualized Income Installment Method, later. Return. In these instructions, “return” refers to your original return. However, a second, subsequent, or amended return filed by the due date (including extensions) of the original return is a “superseding” return and is considered as if it were the original return. The first return filed is ignored to the extent it was changed by the superseding return. Also, a joint return that replaces previously filed separate returns is considered the original return. Exceptions to the Penalty You won't have to pay the penalty or file this form if either of the following applies. You had no tax liability for 2022, you were a U.S. citizen or resident alien for the entire year (or an estate of a domestic decedent or a domestic trust), and your 2022 tax return was (or would have been had you been required to file) for a full 12 months. The total tax shown on your 2023 return minus the amount of tax you paid through withholding is less than $1,000. To determine whether the total tax is less than $1,000, complete Part I, lines 1 through 7. Estates and trusts. No penalty applies to either of the following. A decedent's estate for any tax year ending before the date that is 2 years after the decedent's death. A trust that was treated as owned by the decedent if the trust will receive the residue of the decedent's estate under the will (or if no will is admitted to probate, the trust primarily responsible for paying debts, taxes, and expenses of administration) for any tax year ending before the date that is 2 years after the decedent's death. Farmers and fishermen. If you meet both tests 1 and 2 below, you don't owe a penalty for underpaying estimated tax. Your gross income from farming or fishing is at least two-thirds of your annual gross income from all sources for 2022 or 2023. You filed Form 1040, 1040-SR, or 1041 and paid the entire tax due by March 1, 2024. See chapter 2 of Pub. 505, Tax Withholding and Estimated Tax, for the definition of gross income from farming and fishing. If you meet test 1 but not test 2, use Form 2210-F, Underpayment of Estimated Tax by Farmers and Fishermen, to see if you owe a penalty. When using Form 2210-F, refer to the Instructions for Form 2210-F, which discuss special rules that may apply. If you don't meet test 1, use Form 2210. Waiver of Penalty If you have an underpayment, all or part of the penalty for that underpayment will be waived if the IRS determines that: In 2022 or 2023, you retired after reaching age 62 or became disabled, and your underpayment was due to reasonable cause (and not willful neglect); or The underpayment was due to a casualty, disaster, or other unusual circumstance, and it would be inequitable to impose the penalty. For federally declared disaster areas, see Federally declared disaster, later. To request any of the above waivers, do the following. Check box A or box B in Part II, as applicable. If you checked box A, complete only page 1 of Form 2210 and attach it to your tax return (you aren't required to figure the amount of penalty to be waived). If you checked box B, complete Form 2210 through line 18 without regard to the waiver. Enter the amount you want waived in parentheses on the dotted line next to line 19. Subtract this amount from the total penalty you figured without regard to the waiver, and enter the result on line 19 . Attach Form 2210 and a statement to your return explaining the reasons you were unable to meet the estimated tax requirements and the time period for which you are requesting a waiver. If you’re requesting a waiver due to retirement or disability, attach documentation that shows your retirement date (and your age on that date) or the date you became disabled. If you’re requesting a waiver due to a casualty, disaster (other than a federally declared disaster, as discussed next), or other unusual circumstance, attach documentation such as copies of police and insurance company reports. The IRS will review the information you provide and decide whether to grant your request for a waiver. Federally declared disaster. Certain estimated tax payment deadlines for taxpayers who reside or have a business in a federally declared disaster area are postponed for a period during and after the disaster. During the processing of your tax return, the IRS automatically identifies taxpayers located in a covered disaster area (by county or parish) and applies the appropriate penalty relief. 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. An individual or a fiduciary for an estate or trust not in a covered disaster area but whose books, records, or tax professionals' offices are in a covered area is also entitled to relief. Also eligible are relief workers affiliated with a recognized government or charitable organization assisting in the relief activities in a covered disaster area. If you meet either of these eligibility requirements, you must call the IRS disaster hotline at 866-562-5227 and identify yourself as eligible for this relief. For information about claiming relief, see IRS.gov/DisasterTaxRelief. For more information on disaster assistance and emergency relief for individuals and businesses, see IRS.gov/DisasterRelief. See Pub. 976, Disaster Relief, for more details. For guidance on figuring estimated taxes for trusts and certain estates, see Notice 87-32, 1987-1 C.B. 477. Specific Instructions Part I—Required Annual Payment Complete lines 1 through 9 to figure your required annual payment. If you file an amended return by the due date of your original return, use the amounts shown on your amended return to figure your underpayment. If you file an amended return after the due date, use the amounts shown on the original return. Exception. If you and your spouse file a joint return after the due date to replace previously filed separate returns, use the amounts shown on the joint return to figure your underpayment. Line 1 Enter the amount from Form 1040, 1040-SR, or 1040-NR, line 22. For an estate or trust, enter the amount from Form 1041, Schedule G, line 3. Form 1040, 1040-SR, or 1041 filers: You may exclude the amount of your net tax liability under section 965 when calculating the amount of your required annual payment. Line 2 Enter the total of the following amounts. IF you file... THEN include on line 2 the amounts on... 1040, 1040-NR, or 1040-SR Schedule 2 (Form 1040): Line 4, Line 8 (additional tax on distributions only), Line 9,* Line 10, Line 11, Line 12, Line 14, Line 15, Line 16, Line 17a, Line 17c, Line 17d, Line 17e, Line 17f, Line 17g, Line 17h, Line 17i, Line 17j, Line 17l, and Line 17z. * If you’re a household employer, include your household employment taxes on line 2. Don’t include household employment taxes if both of the following are 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 household employment taxes weren't included. IF you file... THEN include on line 2 the amounts on... 1041 Schedule H (Form 1040): Line 8d,* Form 1041, Schedule G: Line 4, Line 5, Line 6 (6a, 6b, and 6c), and Line 8, don’t include the following write-ins: Look-back interest due under section 167(g) (identified as “From Form 8866”); Look-back interest due under section 460(b) (identified as “From Form 8697”); and Interest accrued on deferred tax under a section 1294 election for the year of termination (see Form 8621, Part VI, line 24, and the Instructions for Form 8621). * If you’re a household employer, include your household employment taxes on line 2. Don’t include household employment taxes if both of the following are 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 household employment taxes weren't included. Line 3 Enter the total amount of the following payments and refundable credits, if any, that you claim on your tax return. Earned income credit. Additional child tax credit. Refundable part of the American opportunity credit (Form 8863, line 8). Premium tax credit (Form 8962). Credit for federal tax paid on fuels. Qualified sick and family leave credits from Schedule(s) H (Schedule 3 (Form 1040), line 13z). Credit determined under section 1341(a)(5)(B). To figure the amount of the section 1341 credit, see Repayments in Pub. 525, Taxable and Nontaxable Income. Line 6 Enter the taxes withheld shown on the following lines: Form 1040 or 1040-SR, line 25d; Form 1040-NR, lines 25d, 25e, 25f, and 25g; Also, Schedule 3 (Form 1040), line 11, if you filed the above forms; Form 1041, Schedule G, line 14. Filers of Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands. Also enter on this line the amount(s) from Form 8689, lines 41 and 46, that you entered on line 33 of your 2023 Form 1040 or 1040-SR. Line 8 To figure your 2022 tax, first add the amounts listed in (1) below, then subtract from that total amount the refundable credits listed in (2), later, that are shown on your 2022 tax return. (1) Add the amounts listed in the chart below based on which tax return you filed for 2022. IF you filed for 2022... THEN add the following amounts shown on your 2022 tax return. 1040, 1040-NR, or 1040-SR Line 22, Schedule 2 (Form 1040): Line 4, Line 8 (additional tax on distributions only), Line 9,* Line 10, Line 11, Line 12, Line 14, Line 15, Line 16, Line 17a, Line 17c, Line 17d, Line 17e, Line 17f, Line 17g, Line 17h, Line 17i, Line 17j, Line 17l, and Line 17z * If you’re a household employer, include your household employment taxes on line 8. Don’t include household employment taxes if both of the following are 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 household employment taxes weren't included. IF you filed for 2022... THEN add the following amounts shown on your 2022 tax return. 1041 Schedule H (Form 1040): Line 8d,* Form 1041, Schedule G: Line 3, Line 4, Line 5, Line 6, and Line 8, don’t include the following write-ins: Look-back interest due under section 167(g) (identified as “From Form 8866”); Look-back interest due under section 460(b) (identified as “From Form 8697”); and Interest accrued on deferred tax under a section 1294 election for the year of termination (see Form 8621, Part VI, line 24, and the Instructions for Form 8621). * If you’re a household employer, include your household employment taxes on line 8. Don’t include household employment taxes if both of the following are 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 household employment taxes weren't included. (2) Subtract refundable credits listed below. Subtract the total of the following refundable credits, if any, that you claimed on your 2022 tax return. Earned income credit. Additional child tax credit. Refundable part of the American opportunity credit (Form 8863, line 8). Premium tax credit (Form 8962). Credit for federal tax paid on fuels. Qualified sick and family leave credits from Schedule(s) H (Schedule 3 (Form 1040), lines 13b and 13h). Credit determined under section 1341(a)(5)(B). Enter the 2022 tax you figured above unless the AGI on your 2022 return is more than $150,000 ($75,000 if married filing separately for 2023). If the AGI shown on your 2022 tax return is more than $150,000 ($75,000 if married filing separately), enter 110% of the amount of the tax computed earlier. If you are filing a joint return for 2023, but you didn't file a joint return for 2022, add your 2022 tax (as figured earlier) to your spouse's 2022 tax (as figured earlier) and enter the total on line 8. If you file a separate return for 2023, but you filed a joint return with your spouse for 2022, your 2022 tax is your share of the tax on the joint return. You are filing a separate return if you file as single, head of household, or married filing separately. If you didn't file a return for 2022 or your 2022 tax year was less than 12 months, don't complete line 8. Instead, enter the amount from line 5 on line 9. However, see Exceptions to the Penalty, earlier. Form 1040, 1040-SR, or 1041 filers: You may exclude the amount of your net tax liability under section 965 when calculating the amount of your maximum required annual payment based on your prior year's tax. Part III—Penalty Computation If you checked box C in Part II, complete Schedule AI before Part III. Form 1040-NR filers. If you’re filing Form 1040-NR and didn't receive wages as an employee subject to U.S. income tax withholding, the instructions for completing Part III are modified as follows. Skip column (a). On line 10, column (b), enter one-half of the amount on line 9 of Part I (unless you’re using the annualized income installment method). On line 11, column (b), enter the total tax payments made through June 15, 2023, for the 2023 tax year. If you’re treating federal income tax (and excess social security or tier 1 RRTA) as having been withheld evenly throughout the year, you’re considered to have paid one-third of these amounts on each payment due date. Section A—Figure Your Underpayment Line 10 Enter on line 10, columns (a) through (d), the amount of your required installment for the due date shown in each column heading. For most taxpayers, this is one-fourth of the required annual payment shown on Part I, line 9. However, it may be to your benefit to figure your required installments by using the annualized income installment method. See the Schedule AI Annualized Income Installment Methodinstructions, later. Line 11 Table 1—List your estimated tax payments for 2023. Before completing line 11, enter in Table 1 the payments you made for 2023. Include the following payments. Any overpayment from your 2022 return applied to your 2023 estimated tax payments. Generally, treat the payment as made on April 15, 2023. Estimated tax payments you made for the 2023 tax year, plus any federal income tax and excess social security and RRTA tax withheld. Any payment made on your balance due return for 2023. Use the date you filed (or will file) your return or April 15, 2024, whichever is earlier, as the payment date for these purposes. Table 1. Estimated Tax Payments Date Payment amount Date Payment amount Entries on Form 2210. Enter on line 11 the applicable tax payments. Column (a)—payments you made by April 15, 2023. Column (b)—payments you made after April 15, 2023, through June 15, 2023. Column (c)—payments you made after June 15, 2023, through September 15, 2023. Column (d)—payments you made after September 15, 2023, through January 15, 2024. When figuring your payment dates and the amounts to enter on line 11 of each column, apply the following rules. For withheld federal income tax and excess social security or tier 1 RRTA, you are considered to have paid one-fourth of these amounts on each payment due date unless you can show otherwise. You’ll find these amounts on the following lines. If you treat withholding as paid on the dates it was actually withheld for estimated tax purposes, you must check box D in Part II and complete and attach Form 2210 to your return. Include all estimated tax payments you made for each period. Include any overpayment from your 2022 tax return you elected to apply to your 2023 estimated tax. If your 2022 return was fully paid before April 15, 2023, treat the overpayment as a payment made on April 15, 2023. If you mail your estimated tax payments, use the date of the U.S. postmark as the date of payment. If an overpayment is generated on your 2022 return from a payment made after April 15, 2023, treat the payment as made on the date of payment. For example, you paid $500 due on your 2022 return on August 1, 2023, and later amended the return and were due a $400 refund which you elected to have applied to your estimated taxes. The $400 overpayment would be treated as paid on August 1. If you file your return and pay the tax due by January 31, 2024, include on line 11, column (d), the amount of tax you pay with your tax return. In this case, you won't owe a penalty for the payment due on January 15, 2024. Example 1. You filed your 2022 tax return on August 1, 2023, showing a $2,000 refund. You elected to have $1,000 of your 2022 overpayment applied to your 2023 estimated tax payments. In 2023, you had $4,000 of federal income tax withheld from wages. You also made $500 estimated tax payments on September 15, 2023, and January 15, 2024. On line 11, column (a), enter $3,000 ($2,000 withholding + $1,000 overpayment). In columns (c) and (d), enter $1,500 ($1,000 withholding + $500 estimated tax payment). Line 17 If line 17 is zero for all payment periods, you don't owe a penalty. But if you checked box C or D in Part II, you must file Form 2210 with your return. If you checked box E, you must file page 1 of Form 2210 with your return. In certain circumstances, the IRS will waive all or part of the underpayment penalty. See Waiver of Penalty, earlier. Section B—Figure the Penalty Use the penalty worksheet (Worksheet for Form 2210, Part III, Section B Figure the Penalty), to figure your penalty for each period by applying the appropriate rate against each underpayment shown in Section A, line 17. The penalty is figured for the number of days that each underpayment remains unpaid. Your payments are applied first to any underpayment balance on an earlier installment even if you designate a payment for a later period. See Example 2 below. Use lines 3, 6, 9, and 12 of the penalty worksheet to show the number of days an underpayment remained unpaid. Use lines 4, 7, 10, and 13 to figure the actual penalty amount by applying the appropriate rate to an underpayment for the number of days it remained unpaid. Example 2. You had a $500 underpayment remaining after your April 15 payment. The June 15 installment required a payment of $1,200. On June 10, you made a payment of $1,200 to cover the June 15 installment. However, $500 of this payment is applied first to the April 15 installment. The penalty for the April 15 installment is figured from April 15 to June 10 (56 days). The amount remaining to be applied to the June 15 installment is $700. Total days per rate period. If an underpayment remained unpaid for an entire rate period, use Table 2 below to determine the number of days to enter in each column. The chart is organized in the same format as the penalty worksheet. Table 2. Chart of Total Days Rate Period (a) 04/15/23 (b) 06/15/23 (c) 09/15/23 (d) 01/15/24 04/16/23–06/30/23 76 15 — — 07/01/23–09/30/23 92 92 15 — 10/01/23–12/31/23 92 92 92 — 01/01/24–04/15/24 106 106 106 91 For example, if you have an underpayment on line 17, column (a), but Table 1 shows you have no payments until after January 4, 2024, you would enter “76” on line 6, column (a), of the penalty worksheet. If you make a payment during a rate period, see Table 4-1, below, for an easy way to figure the number of days the payment is late. Table 4-1. Calendar To Determine the Number of Days a Payment Is Late Instructions. Use this table with Form 2210 if you’re completing Part III, Section B. First, find the number for the payment due date by going across to the column of the month the payment was due and moving down the column to the due date. Then, in the same manner, find the number for the date the payment was made. Finally, subtract the due date number from the payment date number. The result is the number of days the payment is late. Example . The payment due date is June 15 (61). The payment was made on November 4 (203). The payment is 142 days late (203 – 61). Tax Year 2023 Day of 2023 2023 2023 2023 2023 2023 2023 2023 2023 2024 2024 2024 2024 Month April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. April 1 16 47 77 108 139 169 200 230 261 292 321 352 2 17 48 78 109 140 170 201 231 262 293 322 353 3 18 49 79 110 141 171 202 232 263 294 323 354 4 19 50 80 111 142 172 203 233 264 295 324 355 5 20 51 81 112 143 173 204 234 265 296 325 356 6 21 52 82 113 144 174 205 235 266 297 326 357 7 22 53 83 114 145 175 206 236 267 298 327 358 8 23 54 84 115 146 176 207 237 268 299 328 359 9 24 55 85 116 147 177 208 238 269 300 329 360 10 25 56 86 117 148 178 209 239 270 301 330 361 11 26 57 87 118 149 179 210 240 271 302 331 362 12 27 58 88 119 150 180 211 241 272 303 332 363 13 28 59 89 120 151 181 212 242 273 304 333 364 14 29 60 90 121 152 182 213 243 274 305 334 365 15 0 30 61 91 122 153 183 214 244 275 306 335 366 16 1 31 62 92 123 154 184 215 245 276 307 336 17 2 32 63 93 124 155 185 216 246 277 308 337 18 3 33 64 94 125 156 186 217 247 278 309 338 19 4 34 65 95 126 157 187 218 248 279 310 339 20 5 35 66 96 127 158 188 219 249 280 311 340 21 6 36 67 97 128 159 189 220 250 281 312 341 22 7 37 68 98 129 160 190 221 251 282 313 342 23 8 38 69 99 130 161 191 222 252 283 314 343 24 9 39 70 100 131 162 192 223 253 284 315 344 25 10 40 71 101 132 163 193 224 254 285 316 345 26 11 41 72 102 133 164 194 225 255 286 317 346 27 12 42 73 103 134 165 195 226 256 287 318 347 28 13 43 74 104 135 166 196 227 257 288 319 348 29 14 44 75 105 136 167 197 228 258 289 320 349 30 15 45 76 106 137 168 198 229 259 290 350 31 46 107 138 199 260 291 351 Worksheet for Form 2210, Part III, Section B—Figure the Penalty (Penalty Worksheet) Complete Rate Period 1 of each column before going to the next column; then go to Rate Periods 2, 3, and 4 in the same manner. If multiple estimated tax payments are applied to the underpayment amount in a column of line 1a, you’ll need to make more than one computation for that column. Payment Due Dates (a) 04/15/23 (b) 06/15/23 (c) 09/15/23 (d) 01/15/24 1a Enter your underpayment from Part III, Section A, line 17 1a 1b Date and amount of each payment applied to the underpayment in the same column. Don't enter more than the underpayment amount on line 1a for each column (see instructions). Note. Your payments are applied in the order made first to any underpayment balance in an earlier column until that underpayment is fully paid. 1b Rate Period 1: April 16, 2023–June 30, 2023 2 Computation starting dates for this period 2 04/15/23 06/15/23 Days: Days: 3 Number of days from the date on line 2 to the date the amount on line 1a was paid or 06/30/23, whichever is earlier 3 4 Underpayment on line 1a × Number of days on line 3 365 × 0.07 4 $ $ Rate Period 2: July 1, 2023–September 30, 2023 5 Computation starting dates for this period 5 06/30/23 06/30/23 09/15/23 Days: Days: Days: 6 Number of days from the date on line 5 to the date the amount on line 1a was paid or 09/30/23, whichever is earlier 6 7 Underpayment on line 1a × Number of days on line 6 365 × 0.07 7 $ $ $ Rate Period 3: October 1, 2023–December 31, 2023 8 Computation starting dates for this period 8 09/30/23 09/30/23 09/30/23 Days: Days: Days: 9 Number of days from the date on line 8 to the date the amount on line 1a was paid or 12/31/23, whichever is earlier 9 10 Underpayment on line 1a × Number of days on line 9 365 × 0.08 10 $ $ $ Rate Period 4: January 1, 2024–April 15, 2024 11 Computation starting dates for this period 11 12/31/23 12/31/23 12/31/23 01/15/24 Days: Days: Days: Days: 12 Number of days from the date on line 11 to the date the amount on line 1a was paid or 04/15/24, whichever is earlier 12 13 Underpayment on line 1a × Number of days on line 12 366 × 0.08 13 $ $ $ $ 14 Penalty. Add all amounts on lines 4, 7, 10, and 13 in all columns. Enter the total here and on line 19 of Part III, Section B 14 $ Worksheet for Form 2210, Part III, Section B—Figure the Penalty (Penalty Worksheet) Line 1b. If more than one payment was applied to fully pay the underpayment amount in a column (line 1a), enter on line 1b the date and amount applied up to the underpayment amount. If a payment was more than the underpayment amount, enter the excess in the next column with the same date. However, for each column, only enter payments you made or plan to make after the date at the top of the column. Do not enter any withheld federal income tax and excess social security or tier 1 RRTA on line 1b. Example 3. Your required installment for each payment due date is $4,000. You made the following estimated tax payments. Date Payments 04/30/23 $2,000 06/15/23 $3,000 09/15/23 $4,000 01/15/24 $4,000 On line 1a, column (a), shows $4,000 and columns (b) through (d) show $3,000. Enter “04/30 $2,000” and “06/15 $2,000” on line 1b, column (a). The remaining $1,000 ($3,000 – $2,000) of the June 15 payment cannot be entered on line 1b, column (b), because the payment was not made after 06/15/23, and is already used to reduce the underpayment on line 1a, column (b). Also enter “09/15 $3,000” on line 1b, column (b), because $3,000 of the $4,000 September payment must be used to fully pay the June underpayment. Also enter “01/15 $3,000” on line 1b, column (c), because $3,000 of the $4,000 January payment must be used to fully pay the September underpayment. Do not enter any payment on line 1b, column (d). Line 3. If more than one payment was applied to an underpayment on line 1a, enter the number of days each payment was late. Example 4. Using the same facts as Example 3 above, enter “15” (number of days from 04/15 to 04/30) and “61” (number of days from 04/15 to 06/15) on line 3, column (a) (see illustration under Example 5 below). Line 4. Make the computation requested on line 4 and enter the result. If more than one payment was required to fully satisfy an underpayment amount, make a separate computation for each payment. See Example 5 below. Example 5. Assume the same facts as in Example 3, earlier. On line 4, enter the penalty for each underpayment: “$5.75” ($2,000 × (15 ÷ 365) × 0.07) and “$23.40” ($2,000 × (61 ÷ 365) × 0.07). The entries are illustrated below. (a) 2 04/15/23 3 Days: 15 Days: 61 4 $5.75 $23.40 Column (a) is fully paid in the second rate period; therefore, lines 6, 7, 9, 10, 12, and 13 for column (a) would be blank. Continue with the underpayment in columns (b), (c), and (d) in the same manner. Note. If an underpayment balance remains for the remaining rate periods, calculate the penalty using the same steps as explained above, but use the days and interest rates on lines 6 and 7 for rate period 2, lines 9 and 10 for rate period 3, and lines 12 and 13 for rate period 4. Schedule AI—Annualized Income Installment Method If your income varied during the year because, for example, you operated your business on a seasonal basis or had a large capital gain late in the year, you may be able to lower or eliminate the amount of one or more required installments by using the annualized income installment method. Use Schedule AI to figure the required installments to enter on Form 2210, Part III, line 10. If you use Schedule AI for any payment due date, you must use it for all payment due dates. To use the annualized income installment method to figure the penalty, you must do all of the following. Complete Schedule AI, Part I (and Part II, if necessary). Enter the amounts from Schedule AI, Part I, line 27, columns (a) through (d), in the corresponding columns of Form 2210, Part III, line 10. Complete Part III to figure the penalty. This includes completing the penalty worksheet in the instructions. Check box C in Part II. For each period shown on Schedule AI, figure your income and deductions based on your method of accounting. If you use the cash method of accounting (used by most people), include all income actually or constructively received during the period and all deductions actually paid during the period. Attach Form 2210, Parts I, II, III, and Schedule AI to your return. Note. Each period (see the top of Schedule AI) includes amounts from the previous period(s). Period (a) includes items for January 1 through March 31. Period (b) includes items for January 1 through May 31. Period (c) includes items for January 1 through August 31. Period (d) includes items for the entire year. Additional information. Estates and trusts, see Notice 87-32. Individuals filing Form 1040-NR. If you’re filing Form 1040-NR and you didn't receive wages as an employee subject to U.S. income tax withholding, follow these modified instructions for Schedule AI. Skip column (a). Beginning with column (b), enter on line 1 your income for the period that is effectively connected with a U.S. trade or business. Increase the amount on line 19 by the amount determined by multiplying your income for the period that isn't effectively connected with a U.S. trade or business by the following. In column (b), 72%. In column (c), 45%. In column (d), 30%. However, if you can use a treaty rate lower than 30% for all your income during the year that isn’t effectively connected with a U.S. trade or business, use the percentages determined by multiplying your treaty rate by 2.4, 1.5, and 1, respectively. If different treaty rates are applicable, substitute your weighted average treaty rate during the year for the treaty rate in the previous sentence. For example, if you have $1,000 of income during the year that isn’t effectively connected with a U.S. trade or business, and $500 is subject to a 15% treaty rate, $200 is subject to a 5% treaty rate, and $300 is subject to a 30% treaty rate, the weighted average treaty rate would be 17.5%. You would use the percentages for columns (b), (c), and (d) determined by multiplying 17.5% by 2.4, 1.5, and 1, respectively. Enter on line 24, column (b), one-half of the amount from Form 2210, Part I, line 9. In columns (c) and (d), enter one-fourth of that amount. Skip column (b) of lines 22 and 25. Part I—Annualized Income Installments To figure the amount of each required installment, Schedule AI selects the smaller of the annualized income installment or the regular installment (that has been increased by the amount saved by using the annualized income installment method in figuring any earlier installments). Line 1 For each period (column), figure your total income minus your adjustments to income. Include your share of partnership or S corporation income or loss items for the period. If you’re self-employed, be sure to take into account the deductible part of your self-employment tax. Line 2 Estates and trusts don't use the amounts shown in columns (a) through (d). Instead, use 6, 3, 1.71429, and 1.09091, respectively, as the annualization amounts. Line 6 If you itemized deductions, multiply line 4 of each column by line 5 and enter the result on line 6. Line 7 If you’re a resident of India and a student or business apprentice, enter your standard deduction from Form 1040-NR, line 12. Line 9 Enter your deduction for qualified business income. For information on how to compute your deduction for qualified business income, see the instructions for Forms 8995 and 8995-A. 2023 Estimated Tax. Part I, Line 4 Qualified Dividends and Capital Gain Tax Worksheet 1. Enter the amount from the appropriate worksheet. Line 3 of your 2023 Estimated Tax Worksheet. (Worksheet 2-1 in Pub. 505) Line 3 of Worksheet 2-6 in Pub. 505 (use if you will exclude or deduct foreign earned income or housing) 1. _____ 2. Enter your qualified dividends expected for 2023 1 2. _____ 3. Enter your net capital gain expected for 2023 1 3. _____ 4. Add lines 2 and 3 4. _____ 5. Enter your 28% rate gain or loss expected for 2023 2 5. _____ 6. Enter your unrecaptured section 1250 gain expected for 2023 6. _____ 7. Add lines 5 and 6 7. _____ 8. Enter the smaller of line 3 or line 7 8. _____ 9. Subtract line 8 from line 4 9. _____ 10. Subtract line 9 from line 1. If zero or less, enter -0- 10. _____ 11. Enter the smaller of line 1 or $89,250 ($44,625 if single or married filing separately, or $59,750 if head of household) 11. _____ 12. Enter the smaller of line 10 or line 11 12. _____ 13. Subtract line 4 from line 1. If zero or less, enter -0- 13. _____ 14. Enter the larger of line 12 or line 13 14. _____ Note. If line 11 and line 12 are the same, skip line 15 and go to line 16. 15. Subtract line 12 from line 11. This is the amount taxed at 0% 15. _____ Note. If lines 1 and 11 are the same, skip lines 16 through 36 and go to line 37. 16. Enter the smaller of line 1 or line 9 16. _____ 17. Enter the amount from line 15. If line 15 is blank, enter -0- 17. _____ 18. Subtract line 17 from line 16. If zero or less, enter -0- 18. _____ 19. Enter: $492,300 if single, $276,900 if married filing separately, $553,850 if married filing jointly or surviving spouse, or $523,050 if head of household 19. _____ 20. Enter the smaller of line 1 or line 19 20. _____ 21. Add lines 14 and 15 21. _____ 22. Subtract line 21 from line 20. If zero or less, enter -0- 22. _____ 23. Enter the smaller of line 18 or line 22 23. _____ 24. Multiply line 23 by 15% (0.15) 24. _____ 25. Add line 17 and line 23. If line 1 equals the sum of lines 21 and 23, then skip lines 26 through 36 and go to line 37 25. _____ 26. Subtract line 25 from line 16 26. _____ 27. Multiply line 26 by 20% (0.20) 27. _____ 28. Enter the smaller of line 3 or line 6 28. _____ 29. Add lines 4 and 14 29. _____ 30. Enter the amount from line 1 above 30. _____ 31. Subtract line 30 from line 29. If zero or less, enter -0- 31. _____ 32. Subtract line 31 from line 28. If zero or less, enter -0- 32. _____ 33. Multiply line 32 by 25% (0.25) 33. _____ Note. If line 5 is zero or blank, skip lines 34 through 36 and go to line 37 . 34. Add lines 14, 15, 23, 26, and 32 34. _____ 35. Subtract line 34 from line 1 35. _____ 36. Multiply line 35 by 28% (0.28) 36. _____ 37. Figure the tax on the amount on line 14 from the 2023 Tax Rate Schedules 37. _____ 38. Add lines 24, 27, 33, 36, and 37 38. (Continued on next page) 2023 Estimated Tax. Part I, Line 4 Qualified Dividends and Capital Gain Tax Worksheet (Continued) 39. Figure the tax on the amount on line 1 from the 2023 Tax Rate Schedules 39. _____ 40. Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 38 or line 39 here and on Part I, line 4 (or line 4 of Worksheet 2-6 in Pub. 505) 40. 1 If you expect to deduct investment interest expense, don’t include on this line any qualified dividends or net capital gain that you will elect to treat as investment income. 2 This includes a section 1202 exclusion from eligible gain on qualified small business stock and gain or loss from the sale or exchange of collectibles. See the Instructions for Schedule D (Form 1040) for more information. Line 12 Form 1040, 1040-SR, or 1040-NR filers, enter -0- in each column. Estates and trusts, use the exemption amount shown on your return. Line 14 To compute the tax, see the instructions for your tax return for the applicable Tax Table or worksheet to use. For example, Form 1040 or 1040-SR filers can use the Tax Table; Tax Computation Worksheet; Qualified Dividends and Capital Gain Tax Worksheet; Schedule D Tax Worksheet; Foreign Earned Income Tax Worksheet; Schedule J; or Form 8615, Tax for Certain Children Who Have Unearned Income. Line 16 Enter all of the other taxes you owed because of events that occurred during the months shown in the column headings. Include the same taxes used to figure Form 2210, Part I, line 2 (except self-employment tax), plus the tax from Form 4972, Tax on Lump-Sum Distributions; Form 8814, Parents' Election To Report Child's Interest and Dividends; and any alternative minimum tax (AMT). To figure the AMT, Form 1040 or 1040-SR filers use Form 6251; estates and trusts use Schedule I (Form 1041). Figure alternative minimum taxable income based on your income and deductions during the periods shown in the column headings. Multiply this amount by the annualization amounts shown for each column on Schedule AI, line 2, before subtracting the AMT exemption. Line 18 For each column, enter the credits you’re entitled to because of events that occurred during the months shown in the column headings. These are the credits you used to arrive at the amounts on lines 1 and 3 of Part I, Required Annual Payment. When figuring your credits, annualize any item of income or deduction used to figure each credit. For example, if your earned income (and AGI) for the first period (column (a)) is $8,000 and you qualify for the earned income credit (EIC), use your annualized earned income ($32,000) to figure your EIC for column (a). Part II—Annualized Self-Employment Tax If you had net earnings from self-employment during any period, complete Part II for that period to figure your annualized self-employment tax. If you’re married and filing a joint return and both you and your spouse had net earnings from self-employment, complete a separate Part II for each spouse. Enter on line 15 of Schedule AI, Part I, the combined amounts from line 36 of each spouse's Part II. Any Additional Medicare Tax on self-employment income will be computed in Part I. Line 28 Generally, to figure your net earnings from self-employment on line 28, multiply your net profit from all trades or businesses for each period by 92.35% (0.9235). However, if your Form W-2 showed church employee income or you deducted Conservation Reserve Program payments on your Schedule SE, use a separate Schedule SE as a worksheet to calculate net earnings from self-employment for each period. For this purpose, net earnings from self-employment is the amount on Schedule SE, line 6. Line 30 If you filed Form 4137, Social Security and Medicare Tax on Unreported Tip Income, or Form 8919, Uncollected Social Security and Medicare Tax on Wages, use the following instructions to figure the additional amount to include in the appropriate columns of line 30. Form 4137: Include the actual unreported tips for the period subject to social security tax. This will be the amount on Form 4137, line 10, when the form is completed for a specific period. Form 8919: Include the actual wages for the period from which the social security tax wasn't withheld. This will be the amount on Form 8919, line 10, when the form is completed for a specific period. Instructions for Form 2210 - Notices Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You’re required to give us the information. We need it to ensure that you’re complying with these laws and to allow us to figure and collect the right amount of tax. You aren’t required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual taxpayers filing this form is approved under OMB control number 1545-0074 and is included in the estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this form is shown below. Recordkeeping 13 min. Learning about the law or the form 50 min. Preparing the form 3 hr., 42 min. Copying, assembling, and sending the form to the IRS 41 min. If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we’d be happy to hear from you. See the instructions for the tax return with which this form is filed.
