Enlarge image | 01 0000000000111111111122222222223333333333444444444455555555556666666666777777777788888 1234567890123456789012345678901234567890123456789012345678901234567890123456789012345 04 Schedule Indiana Department of Revenue Enclosure Sequence No. 13 05 StateIT-2210Form 46002 2023 Underpayment of 06 (R24 / 9-23) Estimated Tax By Individuals 07 Enclose with Form IT-40 or Form IT-40PNR 08 Name(s) shown on Form IT-40/IT-40PNR Your Social Security Number 09 10 Section A - Farmers and Fishermen Only - See Instructions Section B: 11 Two-Thirds of Gross Income from Early Filers Annual Gross Income 12 from All Sources Gross Income Farming and Fishing Check box if you filed 13 your 2023 tax return 14 2022 00 X 66.7% = 00 00 and paid the total tax 15 2023 00 X 66.7% = 00 00 due by Jan. 31, 2024 16 17 - Required Annual Payment Round all entries Section C 18 1. 2023 tax ____________________________________________________________________ 1 00 19 2. 2023 credits (not including withholding credits or estimated tax payments) ________________ 2 00 20 21 3. Subtract line 2 from line 1 _______________________________________________________ 3 00 22 4. Multiply line 3 by 90% (.90) (farmers/fishermen multiply by .667, see instructions) ___________ 4 00 23 5. 2023 withholding tax and PTET credit _____________________________________________ 5 24 00 25 6. Subtract line 5 from line 3 - If less than $1,000, STOP HERE! You do not owe a penalty ____ 6 00 26 7. Prior year’s tax (see instructions) _________________________________________________ 7 00 27 28 8. Minimum required annual payment - Enter the lesser of line 4 or line 7 - If less than or equal 29 to the amount on line 5, STOP HERE! You do not owe a penalty _____________________ 8 00 30 31 Section D - Short Method - Read the instructions to determine if you can use the short method 32 9. Enter the withholding tax and PTET credit amount from line 5 above _____________________ 9 00 33 10. Enter the total amount, if any, of estimated tax payments you made for tax year 2023 _________ 10 00 34 35 11. Add lines 9 and 10 ____________________________________________________________ 11 00 36 12. Total Underpayment. Subtract line 11 from line 8. If zero or less, STOP HERE! You do not 37 owe a penalty. Attach this schedule to your tax return _________________________________ 12 00 38 13. Multiply line 12 by 10% (.10). Enter this amount on line 20 on Form IT-40 or Form IT-40PNR __ 13 39 00 40 Installment Period Due Dates A B C D 41 Section E - Regular Method 1st Installment 2nd Installment 3rd Installment 4th Installment 42 April 18, 2023 June 15, 2023 September 15, 2023 January 16, 2024 43 14. Minimum required installment 44 payment: divide amount on 45 line 8 by 4 ___________________ 14 00 00 00 14 00 46 15. 2023 withholding and PTET - 47 Divide line 5 by 4 _____________ 15 00 00 00 15 00 48 49 STOP! Complete lines 16 through 19 for each column before going to the next one. 50 51 16. 2023 estimated taxes paid per period 16 00 00 00 16 00 52 53 17. Total installment payments (add lines 15 and 16) __________ 17 54 00 00 00 17 00 55 18. Installment period overpayment __ 18 00 00 00 18 00 56 19. Installment period underpayment _ 19 57 00 00 00 19 00 58 20. Total underpayment - Add line 19, Columns A + B + C + D and enter total here ____________________ 20 00 59 21. Underpayment penalty - Multiply line 20 by 10%. Enter this amount on line 20 on Form IT-40 or IT-40PNR 21 60 00 61 62 *24100000000* 63 24100000000 64 65 66 |
Enlarge image | Schedule Indiana Department of Revenue IT-2210 Underpayment of Estimated Tax by Individuals WHAT is the purpose of Schedule WHAT ELSE do I need to know about Section B – Early Filers IT-2210? This schedule is used for one this schedule? If you file your individual income tax of two reasons: return and pay the tax due by Jan. 31, • If you are a farmer or fisherman, 2024, you will not be required to make 1. To help you figure any penalty you you should review Section A below a fourth installment estimated tax owe for not paying enough tax and Section D - Short Method payment. For additional information throughout the year, or instructions on page 2. see the instructions for line 16. 2. To show you paid enough tax • All taxpayers need to know about Section C – Required Annual throughout the year to be exempt the short method of figuring the Payments from the penalty. penalty in Section D. Section C will determine if you should have paid estimated taxes during the WHY is a penalty charged? The • If you received seasonal income year and the minimum amount required. Indiana income tax system is a “pay (i.e., you had fireworks sales, you as you go” system. Many taxpayers worked during a Christmas season, Line 1 – 2023 Tax: Add together have enough taxes withheld from their etc.) that is not evenly received the state adjusted gross income tax income throughout the year to cover throughout the year, you might want and county income tax from lines 8 their year-end total tax due. However, to complete Schedule IT-2210A, and 9 of either Form IT-40 or Form if you don’t have taxes withheld Annualized Income Schedule. IT-40PNR, any recapture of certain from your income, or if you don’t Annualization could possibly Indiana credits from line 3 of Indiana’s have enough tax withheld from your reduce your required installment Schedule 4 or Schedule E, plus income, you may owe a penalty for tax payments. You may download any nonresident professional team underpaying estimated tax. Schedule IT-2210A from the member’s county tax from Schedule E, following web address: line 4. Enter the total here. WHO should use Schedule IT-2210? www.in.gov/dor/tax-forms/2023- You should complete this schedule if: individual-income-tax-forms/. Line 2 – 2023 Credits: Add together • The amount you owe for tax year Section A – Farmers and any credits from lines 5 through 12 of Indiana’s Schedule 5 or Schedule F, 2023, after credits, is $1,000 or Fishermen plus any offset credits from line 8 of more. The amount you owe is from If at least two-thirds of your gross Indiana’s Schedule 6 or Schedule G. Form IT-40 and Form IT-40PNR, income for 2022 or 2023 was from Enter the total here. line 15 minus line 14, or farming or fishing, you have only one payment due date for 2023 estimated • You underpaid the minimum tax - Jan. 16, 2024. Line 4 – To determine 90% of your amount due for one or more of the total expected tax, multiply line 3 by installment periods. This is true To meet an exception to the 90% (.90). even if you are due a refund. underpayment penalty for 2023, you may use Option 1 or Option 2. Note. If at least 2/3 of your gross in- HOW much is the penalty? The come is from farming or fishing, multi- penalty is 10% of the underpayment If you are eligible for treatment as a ply line 3 by 66 2/3% (.667). for each underpaid installment period. farmer or fisherman, please mark “F” That is why Section E of this schedule in the box on Line 20a of Form IT-40 Line 5 – 2023 Withholding and Pass is set up by periods, and should be or Form IT-40PNR. Through Entity Tax: Add together filled out one column at a time. any state and county withholding Option 1 – Pay all your estimated tax amounts from lines 1 and 2 along with WHAT DO I NEED to complete this by Jan. 16, 2024, and file your Form any pass through entity tax (PTET) form? You’ll need a copy of: IT-40 by April 15, 2024, OR from line 3 of Indiana’s Schedule 5 or • Your completed 2023 Form IT-40 or Schedule F. Enter the total here. Form IT-40PNR, Option 2 – File your Form IT-40 by March 1, 2024, and pay all the tax Line 6 – Subtract line 5 from line 3. If • Your 2022 Form IT-40 or Form IT- due. You are not required to make an this amount is less than $1,000, you 40PNR, and estimated tax payment if you choose do not owe a penalty. Stop here and this second option. If you pay all the keep a copy as DOR may request to • Records of actual estimated tax tax due, you will not be penalized for see it at a later date. payments you made for 2023. failure to pay estimated tax. |
Enlarge image | Line 7 – Prior Year’s Tax Example for when 2022 Form IT-40PNR was filed as a part-year resident: If you filed Exception: See if you are eligible for a 2022 Form IT-40PNR as a part-year resident of Indiana, you must figure the tax for that any of the following exceptions. year on an annualized basis. You can accomplish this by multiplying the Form IT-40PNR line 1 income by 12 and dividing the result by the number of months you were an Indiana • If you filed a 2022 Form IT-40, resident. Then figure the state tax and county tax, if applicable, by 1) subtracting your 2023 add the tax from lines 8 and 9; exemptions from the result and 2) multiplying that total by the combined state and applicable subtract the total of the credits county tax rate(s) from your 2023 Indiana individual income tax return. See the example on line 13 plus any amounts on below. Note. See CAUTION box below. Schedule 5, lines 4 through 11. Enter the result here. Note. See Example CAUTION box below. • Jane moved to Indiana on Sept. 15, 2022, so she was a resident for 3.5 months. • Her 2022 Form IT-40PNR line 1 income is $10,000. • If you filed a 2022 Form • Her 2023 total exemptions are $3,500. IT-40PNR as a full-year • The 2023 adjusted gross income tax rate is 3.15% (.0315). Her 2023 county tax rate nonresident, add the tax from is .01 (for a 4.15% [.0415] combined state and county tax rate). lines 8 and 9; subtract the total of the credits on line 13 plus any Use Steps 1 - 4 below to figure her prior year’s tax exception for line 7 of the IT-2210. amounts on Schedule F, lines 4 through 11. Enter the result here. $ 10,000 2022 Indiana income Step 1 Note. See CAUTION box below x 12 months $ 120,000 annualized income • If your federal AGI for 2022 was more than $150,000 ($75,000 if married filing separately) and $ 120,000 annualized income Step 2 you are not subject to the special ÷ 3.5 months of 2022 residency rules for farmers or fishermen, 34,286 enter the result multiplied by 110% (1.10). See the CAUTION box on this page for this Step 3 $ 34,286 calculation. - 3,500 2023 exemptions 30,786 • If you filed a 2022 Form IT- 40PNR as a part-year resident of Indiana, you must figure the Step 4 $ 30,786 tax for that year on an annualized x 4.15% 2023 combined state and county tax rate basis. See the instruc tion and $ 1,278* Example for when 2022 Form IT- 40PNR was filed as a part-year * The $1,278 Step 4 amount should be entered as an exception on line 7 of resident in the right-hand column. Jane’s Schedule IT-2210. • If you did not file a 2022 tax return, enter “N/A” for line 7 and see instructions for line 8. CAUTION. If your 2022 federal adjusted gross income is more than $150,000 ($75,000 if your 2022 filing status is married filing separately), and you are not subject to the Line 8 – Minimum required annual payment: Enter the lesser of line 4 or special rules for farmers and fishermen, you must enter 110% of last year’s tax (instead line 7. If the line 7 entry is N/A, enter of 100%) on line 7. the amount from line 4 on this line. Continue to Section D or Section E, Example. Chris and Kate’s 2022 federal adjusted gross income is $158,000. They must take whichever applies. the following steps to arrive at the exception amount for line 7: a) 2022 IT-40 total income tax (line 8 plus line 9) ............................$ 6,952 Section D – Short Method b) 2022 IT-40 credits (line 13 plus Schedule 5, lines 4 through 10) - 1,952 You can use the short method only if: c) Subtotal .......................................................................................$ 5,000 • You made no estimated tax d) Exception to the penalty percentage ...........................................x 110% e) Amount for line 7 of Schedule IT-2210 ........................................$ 5,500 payments, or • You paid estimated tax in four Note. If Chris and Kate’s 2022 federal adjusted gross income is less than or equal to equal amounts by the due dates, $150,000, they would enter $5,000 instead of $5,500 on line 7. or 2 |
Enlarge image | • At least two-thirds of your gross Line 16 – 2023 Estimated Taxes Example. Dana had a $100 income from 2022 or 2023 was from Paid: Enter the actual amount of underpayment on line 19, Column A. farming or fishing and an estimated estimated tax you timely paid for each She had a $130 overpayment on line tax payment (if any) was made by installment period. Payments made 18, Column B. The net overpayment Jan. 16, 2024. after the due dates are to be reported from the first two installment periods is in the next column. $30 ($130 minus $100). She will add You can’t use the short method if this net overpayment to any estimated either of the following applies: Example. Joe paid $800 in estimated tax paid for the third installment period taxes for 2023. His third installment on line 16, Column C. • You made any estimated tax payment of $200 was not made until payments late, or Oct. 1 (after the Sept. 15 due date). Line 19 – Installment Period • You made estimated payments in The $200 payment should be reported Underpayment: If the total payment unequal amounts. as a 4th period installment payment. (line 17) is less than the required tax (line 14) for an installment period, Section E – Regular Method Note for Early Filers. If you file your enter the difference on this line. Use the regular method if you aren’t individual income tax return and pay eligible to use the short method. the tax due by Jan. 31, 2024, you Line 21 – Underpayment Penalty will not be required to make a 4th This amount must also be entered If you are a fiscal year taxpayer, you installment estimated tax payment. on line 20 of your 2023 Form IT-40 or must change the dates in Columns You should include on line 16, Column Form IT-40PNR. A through D to correspond with your D, the amount of tax you paid with fiscal year. your tax return (Form IT-40 or Form Who Must Submit Schedule IT-40PNR) minus any household IT-2210? Line 14 – Minimum Required employment tax, use tax, recapture • A farmer/fisherman utilizing Installment: Divide the amount on line of certain Indiana credits, nonresident Section A, Option 1 or 2 8 by four and enter the result in each professional team member’s county column. tax from Schedule F, and/or the • Early filers checking box in amount shown on the return to be Section B If you are filing this year as a part- applied to your 2024 estimated tax year resident on Form IT-40PNR, you account. • Anyone completing Section D or must divide line 8 by the number of Section E. installment periods during which you Line 17 – Total Installment were a resident of Indiana. Payments Important. If you are filing your To determine your total installment IT-40 or IT-40PNR by mail, you Installment Periods Are: payments, add lines 15 and 16 in each must enclose a copy of Schedule 1st Period ......Jan. 1 to March 31 column and enter that column’s total IT-2210 to your tax return if you are 2nd Period .....April 1 to May 31 here. claiming an exception to the penalty 3rd Period ......June 1 to Aug. 31 for the underpayment of estimated 4th Period ......Sept. 1 to Dec. 31 Line 18 – Installment Period tax. Overpayment: If the total payment (line Line 15 – 2023 Withholding and 17) is more than the required payment PTET due (line 14) for an installment period, To determine your installment period enter the difference on this line. This withholding credit, divide the amount amount should then be added to line on line 5 by four and enter the result 16 in the next column after subtracting in each column. See Income Tax any underpayment(s) shown on line Information Bulletin #3 for special 19 in the previous column(s). instructions related to withholding that does not occur evenly throughout Note. If, after subtracting any the year or for withholding and PTET underpayments, this amount is less for nonresidents by partnerships, S than zero, no overpayment will be corporations, estates, or trusts. available to carry over to the next installment period. Also, do not carry STOP. Complete lines 16 through 19 over a negative figure if this amount is for each column before going to the less than zero. next column. 3 |