Individual computation 2025

1. Click ‘Get Form’ to open the individual computation form in the editor.
2. Begin by entering your name and Social Security Number as shown on your tax return. Ensure accuracy for proper identification.
3. In Section 1, input your 2021 tax liability on Line 1 and your 2020 tax liability on Line 2. Follow the instructions provided to determine these amounts.
4. On Line 3, enter the smaller amount from Lines 1 or 2. If you did not file a return for 2020, use the amount from Line 1.
5. Indicate the number of payments required for the year in Line 4.
6. Proceed to Section 2. For each payment period, calculate the required payment by dividing the amount on Line 3 by the number of payments indicated in Line 4.
7. Enter any amounts paid for each period in Line 6 and carry forward any overpayment or underpayment from previous periods in Line 7.
8. Calculate the amount available for each period by adding Lines 6 and 7, then determine if there is an underpayment or overpayment by subtracting Line 5 from Line 8.
9. Complete Section 3 by reviewing exceptions that may apply to your situation, ensuring you understand if you owe an underpayment penalty.
10. Finally, in Section 4, calculate any penalties based on your underpayments and ensure all totals are accurately transferred to Form IT-540B as instructed.

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