Alabama Estimated Tax Penalties for Individuals

Estimated Tax Penalties for Individuals
Form 2210AL 2021
*XX002822*

FORM

2210AL

Alabama Department of Revenue

Underpayment of Estimated Tax by Individuals

2023
ADOR

SEE SEPARATE INSTRUCTIONS • ATTACH TO FORM 40 OR FORM 40NR
NAME(S) AS SHOWN ON TAX RETURN



IDENTIFYING NUMBER

Reset Form

If you are a farmer or fisherman and at least two-thirds of your 2022 or 2023 gross income is from farming or fishing, skip Parts I, II, and III. Complete Part IV of this form.

PART I – Required Annual Payment
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Enter your 2023 net tax due after credits from Form 40, line 18 or Form 40NR, line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Other payments. Enter amount from Schedule CP, Section B, Line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Current tax due. Subtract line 2 from line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Multiply line 3 by 90% (.90) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Withholding taxes. Do not include estimated tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Subtract line 5 from line 3. If less than $500, stop; you do not owe a penalty. Do not file Form 2210AL . . . . . . . . . . . . . . . . . . . . . . . . . 6
Maximum required annual payment based on prior year’s tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Required annual payment. Enter the smaller of line 4 or line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Next: Is line 8 more than line 5?
 No. You do not owe a penalty. Do not file Form 2210AL unless box E below applies.
 Yes. You may owe a penalty, but do not file Form 2210AL unless one or more boxes in Part II below applies.
• If box B, C, or D applies, you must figure your penalty and file Form 2210AL.
• If box A or E applies, (but not B, C, or D) file only page 1 of Form 2210AL. You are not required to figure your penalty; the Alabama Department of Revenue will figure it and
send you a bill for any unpaid amount. If you want to figure your penalty, you may use Part III as a worksheet and enter your penalty on your tax return, but file only page 1 of
Form 2210AL.
PART II – Reasons for Filing. Check applicable boxes. If none apply, do not file Form 2210AL.
A  You request a waiver of your entire penalty. You must check this box and file page 1 of Form 2210AL, but you are not required to figure your penalty.
B  You request a waiver of part of your penalty. You must figure your penalty and waiver amount and file Form 2210AL.
C  Your income varied during the year and your penalty is reduced or eliminated when figured using the annualized income installment method. You must figure the penalty
using Schedule AI and file Form 2210AL.
D  Your penalty is lower when figured by treating the Alabama income tax withheld from your income as paid on the dates it was actually withheld, instead of in equal amounts on
the payment due dates. You must figure your penalty and file Form 2210AL.
E  You filed or are filing a joint return for either 2022 or 2023, but not for both years, and line 7 above is smaller than line 4 above. You must file page 1 of Form 2210AL, but you
are not required to figure your penalty (unless box B, C, or D applies).
PART III – Figure Your Underpayment
Using the Regular Method

Payment Due Dates
(a) 4/15/23

(b) 6/15/23

(c) 9/15/23

(d) 1/15/24

1 Required installments. If you choose to use the
Annualized Income Installment Method, enter the
amounts from Schedule AI, line 25. Otherwise, enter
25% (.25) of Part I, line 8, Form 2210AL, in each
columns.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Estimated tax paid, Alabama tax withheld, refundable
credits, and composite payments. For column (a)only,
enter the amount from line 2a on line 6a. If line 2 is equal
to or more than line 1 for all payment periods, stop here;
you do not owe the penalty. Do not file Form 2210AL . . . .

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Complete lines 3 through 9 of one column before
going to the next column.
3 Enter amount, if any, from line 9 of previous column. . . .
4 Add lines 2 and 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Add amounts on lines 7 and 8 of the previous column . .

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6 Subtract line 5 from line 4. If zero or less, enter -0-. . . . .
7 If the amount on line 6 is zero, subtract line 4 from
line 5. Otherwise, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . .
8 Underpayment. If line 1 is equal to or more than line
6, subtract line 6 from line 1. Then go to line 3 of
next column. Otherwise, go to line 9 . . . . . . . . . . . . . .  8
9 Overpayment. If line 6 is more than line 1, subtract
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line 1 from line 6. Then go to line 3 of next column. . . . .
Figure the Penalty Complete lines 10 through 11 of one column before going to the next column.
April 16, 2023 – April 15, 2024
4/15/23
6/15/23
9/15/23
10 Number of days from the date shown above line 10 to
Days:
Days:
Days:
the date the amount on line 8 was paid or 4/15/24,
whichever is earlier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
11 Underpayment X No. of days on line 10 X .075
$
$
on line 8
366
. .  11 $
12 Penalty. Add all amounts on line 11 in all columns. Enter the total here and on Schedule ATP, Part II, line 1; or Form 40NR, line 30... . . . . . . . . . . . . . . . . . . . . . . . . . 

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1/15/24
Days:

$
12

Form 2210AL (2023)

*XX002922*

SCHEDULE AI – Annualized Income
Installment Method
Annualized Income Installments
1 Enter your adjusted gross income for each period
(see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Annualization amounts. . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Annualized income. Multiply line 1 by line 2. . . . . . . . . . .
4 Enter your itemized deductions for the period shown in
each column. If you do not itemize, enter -0- and skip
to line 7.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Annualization amounts. . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Multiply line 4 by line 5. If lines 4-6 are completed, skip
to line 8.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 In each column, enter the full amount of your standard
deduction from Form 40, line 11 (Form 40NR filers,
enter -0-). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Enter the larger of line 6 or line 7. . . . . . . . . . . . . . . . . . .
9 Subtract line 8 from line 3.. . . . . . . . . . . . . . . . . . . . . . . . .
10 In each column, enter the federal tax liability deduction
from Form 40 or Form 40NR. . . . . . . . . . . . . . . . . . . . . . .
11 Subtract line 10 from line 9 . . . . . . . . . . . . . . . . . . . . . . . .
12 In each column enter the personal and dependent
exemptions from your tax return. . . . . . . . . . . . . . . . . . . .
13 Subtract line 12 from line 11.. . . . . . . . . . . . . . . . . . . . . . .
14 Figure your tax on the amount on line 13. . . . . . . . . . . . .
15 For each period, enter the same type of credits as
allowed on Form 40 or Form 40NR. . . . . . . . . . . . . . . . . .
16 Subtract line 15 from line 14. If zero or less, enter -0-.. .
17 Applicable percentage. . . . . . . . . . . . . . . . . . . . . . . . . . . .
18 Multiply line 16 by line 17. . . . . . . . . . . . . . . . . . . . . . . . . .
Caution: Complete lines 19-25 of one column before
going to the next column.
19 Add the amounts in all previous columns of line 25.. . . .
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Page 2
ADOR

(a)
1/1/23-3/31/23

(b)
1/1/23-5/31/23

(c)
1/1/23-8/31/23

(d)
1/1/23-12/31/23

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1.5

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1.5

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22.5%

45%

67.5%

90%

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Subtract line 19 from line 18. If zero or less, enter -0-.. . 20
Enter 25% (.25) of line 8, page 1, Part I, of
Form 2210AL in each column. . . . . . . . . . . . . . . . . . . . . . 21
Enter amount from line 24 of the previous column
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of this schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Add lines 21 and 22 and enter the total. . . . . . . . . . . . . . 23
Subtract line 20 from line 23. If zero or less, enter -0-.. . 24
Enter the smaller of line 20 or line 23 here and on
Form 2210AL, Part III, line 1.. . . . . . . . . . . . . . . . . . . .  25

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PART IV – Underpayment of Estimated Tax by Farmers and Fishermen
Section I

Reasons for Filing. Check applicable boxes. If neither applies, don’t file Form 2210AL.

A •  You request a waiver. In certain circumstances, we will waive all or part of the penalty. See Waiver of Penalty in the instructions.
B •  You filed or are filing a joint return for either 2022 or 2023, but not for both years, and line 7 below is smaller than line 4 below.
Section II
Figure Your Underpayment
1 Enter your 2023 net tax due after credits from Form 40, line 18 or Form 40NR, line 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Other payments. Enter amount from Schedule CP, Section B, Line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Current tax due. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Multiply line 3 by 66 2/3% (0.667) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Withholding taxes. Don’t include any estimated tax payments on this line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Subtract line 5 from line 3. If less than $500, you don’t owe a penalty; don’t file Form 2210AL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Enter the tax shown on your 2022 tax return. (See instructions if your 2023 filing status changed to or from married filing jointly.). . . . . . . .
8 Required annual payment. Enter the smaller of line 4 or line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note: If line 5 is equal to or more than line 8, stop here; you don’t owe the penalty. Don’t file Form 2210AL unless you checked box B above.
9 Enter the estimated tax payments you made by January 15, 2024, and any Alabama income tax withheld during 2023 . . . . . . . . . . . . . . .
10 Underpayment. Subtract line 9 from line 8. If the result is zero or less, stop here; you don’t owe the penalty. Don’t file Form 2210AL unless you checked box B above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Section III Figure the Penalty
11 Enter the date the amount on line 10 was paid or April 15, 2024, whichever is earlier. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
12 Number of days from January 15, 2024, to the date on line 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
13 Penalty. Underpayment on line 10 × Number of days on line 12/366 × 0.07
Enter here and on Schedule ATP, Part II, line 1; or Form 40NR, line 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

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