Form 2210: Underpayment of Estimated Tax by Individuals, Estates and Trusts-2025

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  1. Click ‘Get Form’ to open it in the editor.
  2. Begin with Part I—Exceptions to the Penalty. Check any applicable boxes that apply to your situation, such as if your prepaid tax equals or exceeds last year’s income tax liability.
  3. Move to Part II—Required Annual Payment. Enter your 2022 income tax liability and any withholding amounts. Calculate the required annual payment based on the lesser of 90% of your current year’s tax or 100% of last year’s tax.
  4. In Part III, if applicable, use the Annualized Income Installment Method to adjust payments based on varying income throughout the year. Fill in each column carefully, ensuring all calculations are accurate.
  5. Review all entries for accuracy before saving or exporting your completed form. Utilize our platform's features for easy signing and sharing.

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Conditions for Waiving an Underpayment Penalty A penalty will not be imposed if: Your tax return shows you owe less than $1,000. You paid 90% or more of the tax that you owed for the taxable year or 100% of the tax that you owed for the year prior, whichever amount is less. 1.
Penalties may also be waived if your underpayment was due to a casualty, local disaster, or other unusual circumstances where applying the penalty would be unfair. To request a waiver, you will need to send a signed written explanation (under penalty of perjury) to the address listed at the top of your notice.
IRS Form 2210, officially titled Underpayment of Estimated Tax by Individuals, Estates, and Trusts, is used to calculate any penalties incurred due to underpayment of taxes over the course of the year. Taxpayers typically use Form 2210 when they owe more than $1,000 to the IRS on their federal tax return.
Use Form 2210 to determine the amount of underpaid estimated tax and resulting penalties as well as for requesting a waiver of the penalties. You may need this form if: Youre self-employed or have other income that isnt subject to withholding, such as investment income.
An underpayment penalty is a charge the IRS imposes on taxpayers who did not pay all of their estimated income taxes for the year or paid their taxes late. Youll face an underpayment penalty if you: Didnt pay at least 90% of the tax on your current-year return or 100% of the tax shown on the prior years return.

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You should figure out the amount of tax you have underpaid. Keep in mind this form contains both a short and regular method for determining your penalty. You can let the IRS figure your penalty if you didnt withhold enough tax by the end of the year.
You may need this form if: Youre self-employed or have other income that isnt subject to withholding, such as investment income. You dont make estimated tax payments or paid too little. You dont have enough taxes withheld from your paycheck.

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