Georgia Underpayment of Estimated Tax by Individual/Fiduciary

Underpayment of Estimated Tax by Individual/Fiduciary
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500 UETRev. (06/25/19)

Page 1

Underpayment of Estimated Tax
by Individuals/Fiduciary
Georgia Department of Revenue
Taxpayer Services Division

YEAR

Meets Exception 4 for
an estate of a decedent
or a testamentary trust

(Attach this form to Form 500 or 501)

HOW TO FIGURE YOUR UNDERPAYMENT
(Complete Lines 1 through 6)

YOUR FIRST NAME

SOCIAL SECURITY OR I.D. NUMBER

LAST NAME

1. Tax (from Form 500 Line 16 or Form 501 Line 8)

1.

2. Credits Used (from Form 500 Line 21 or Form 501 Line 9c)

2.

3. Balance Due (Line 1 less Line 2)

3.

4. Enter 100% of the Immediately Preceding Year’s Tax (return must be for a 12-month period)

4.

5. Enter 70% of the Amount Shown on Line 3

5.

6. Divide amount on Line 4 by the number of
installments required for the year (See Instruction
B), enter the results in appropriate columns ................ 6.
7. Divide amount on Line 5 by the number of
installments required for the year (See Instruction
B), enter the results in the appropriate column............. 7.
8. Enter the lesser of Line 6 or Line 7 for each period
in the appropriate column ............................................. 8.
9. Amounts paid on estimate for each period and
tax withheld (withheld treated equally paid for each quarter).. 9.
10.Overpayment of previous installment
(See Instruction E) ......................................................... 10.

April,15 20___

DUE DATE OF INSTALLMENTS
June,15 20___
Sept. 15, 20 ___

Jan. 15, 20___

11.Total of Line 9 and Line 10 ............................................ 11.
12. Underpayment (Line 8 less Line 11) or
Overpayment (Line 11 less Line 8) ........................... 12.
EXCEPTIONS WHICH AVOID THE PENALTY (See Instruction D)
(Farmers and fishermen see Instruction G for special exception)

13. Total amount paid and withheld from Jan. 1, through the
installment date indicated (withheld treated equally paid for each quarter) 13.
14. Exception 1. —Tax on prior years income using
14.
current year rates and exemptions
15. Exception 2. —Tax on annualized current year
income ...................................................................... 15.
16. Exception 3. —Tax on current year’s income
over 3, 5, 8, month periods ......................................... 16.
HOW TO FIGURE THE PENALTY

(Complete Lines 17 through 21 for installments not avoided by an exception)

17. Amount of underpayment (from Line 12) .................... 17.
18. Date of payment or April 15, 20_____whichever
is earlier (See Instruction F) ....................................... 18.
19. Number of days from due date of installment
to date shown on Line 18 ............................................ 19.
20. Penalty (9 percent a year on amount shown on
Line 17 for the number of days shown on Line 19)...................... 20.

21. Penalty (Add amounts on Line 20) show this
amount in the space provided on Form 500 / 501........ 21.

Not
Applicable

Page 2
Instructions for 500 UET Underpayment of
Estimated Tax by Individuals/Fiduciary
A. Individual or fiduciary taxpayers may use this form to determine whether
income tax was sufficiently paid throughout the year by withholding or by installment payments. If sufficient tax was not paid you may owe a penalty of 9 percent
a year on the unpaid amount. This form will help you determine whether you are
subject to a penalty, or whether you are excepted from a penalty. Refundable
tax credits such as the Timber Tax Credit are treated the same as withholding
and should be included with withholding on this form. Purchased Timber Tax
Credits are not refundable and should be treated in the same manner as nonrefundable credits.
B. FILING AN ESTIMATE AND PAYING THE TAX, CALENDAR YEAR TAXPAYERS. – If you file a return on a calendar year basis and are required to file
Form 500ES, you are generally required to file estimated tax by April 15, and to
pay tax in four installments. (If you are not required to file estimated tax until later
in the year because of change in income or exemptions, you may be required to
pay in fewer installments.) The chart below shows the due date for estimated
tax, and maximum number of installments.
Period
Requirements
First Met
Between Jan. 1 and March 31
Between Apr. 1 and May 31
Between June 1 and August 31
On or after September 1

Due Date
of
Payment
April 15
June 15
Sept. 15
Jan. 15

Maximum Number
of Installments
Required
4
3
2
1

If any date shown falls on a Saturday, Sunday, or legal holiday, substitute
the next regular workday.
C. FISCAL YEAR TAXPAYERS. - Fiscal year taxpayers should contact the
Department at (1-877-423-6711) for information on the penalty for underpayment
of estimated taxes.
D. EXCEPTIONS FROM THE PENALTY. – You will not be liable for a penalty
if your current year tax payments (amount shown on Line 13) equals or exceeds
any amount determined for the same period under the following exception provisions. You may apply a different exception to each underpayment but you must
attach a separate computation page. If none of the exceptions apply, complete
Lines 17 through 21 to figure your penalty.

Exception 1, Tax on Prior Tax Year’s Income Using Current Year’s Rates and
Exemptions: This exception applies if your current year’s withheld tax and estimated payments equal or exceed what would have been due on your prior year’s
income if you had computed it at the current year’s rates. To determine this
exception ,use the personal exemption and tax rates allowed for the current year
but use the other facts and the law applicable to your prior year’s return.
Exception 2, Tax on Annualized Current Year’s Income: This exception applies
if your current year’s tax payments equal or exceed 70 percent of the tax on
your annualized taxable income for periods from the first of the year to the end
of the month preceding that in which an installment is due.
To annualize your taxable income, follow these four steps:
a)
Figure your adjusted gross income less itemized deductions or standard deduction from the first of your taxable year up to and including
the month prior to that in which an installment is due.
b)
Multiply the result of Step (a) by 12
c)
Divide the result of Step (b) by the number of months in your computation period.
d)
Subtract the deduction for personal exemptions. The result is your
annualized taxable income.

Example
(Joint return, using itemized deductions)

1.
2.
3.
4.
5.
6.
7.
1.
2.
3.
4.
5.
6.

Wages received during Jan., Feb., and March .............
Self-employment income during Jan., Feb., and March
Adjusted gross income ................................................
Less: Itemized Deductions ........... ...............................
Line 3 less Line 4.........................................................
Annualized income (8,750.00 x 12 = 105,000 / 3) ...... .
Exemption...................................................................

3,500.00
6,000.00
9,500.00
750.00
8,750.00
35,000.00
5,400.00

8.
9.

Example (continued)

Annualized taxable income .......................................... 29,600.00
Total Income Tax ........................................................ 1,467.00

If your withheld tax and estimated tax payment for the first installment
period of the current year was at least 257.00 (70% x 25% x $1,467.00)
you do not owe a penalty for that period.
Exception 3, Tax on Current Year’s Income over Periods of 3, 5, and 8 Months:
This exception applies if your current year’s tax payments equal or exceeds
90 percent of the tax on your taxable income for periods starting from the
first of the year to the end of the month preceding that in which an installment is due. To see if this exception applies, figure your taxable income
from January 1, of the current year to the end of the month preceding that in
which an installment is due. Then compute your tax on that amount as
though it represented your taxable income for the current year.

Example
(Joint return)

(1)
Computation
Period
Jan. 1 to March 31

(2)
Taxable
Income

(3)
Tax

(4)
90 Percent
of Tax

(5)
Tax Withheld or
Paid Directly on
Installment Dates

$0.00

$-0-

$-0-

$108.99

Jan. 1 to May 31

$1,800.00

$26.00

$23.40

$181.65

Jan. 1 to Aug. 31

$5,800.00

$142.00 $127.80

$290.64

Jan. 1 to Dec. 31

$15,000.00

$628.00

$435.96

Since the amounts in column (5) are greater than those in column (4) for
each of the first three computation periods, there is not a penalty for the first
three installment periods. However, although the law does not permit the
use of exception 3 for the fourth installment period, no penalty is owed for
that period because there is no underpayment. The 145.32 tax withheld for
that period (435.96 minus 290.64 shown in column 5 above) is more than
70 percent of the tax that would have been due for the fourth installment if
the total tax for the year had been spread equally over the four installment
periods.
Exception 4. Estate of a Decedent or a Testamentary Trust. Estimated tax
payments are not required for any taxable year ending before the date two
years after the date of the decedent's death for: 1) An estate of a decedent;
or 2) A testamentary trust as defined in Section 6654(I)(2)(B) of the Internal
Revenue Code. For those estates and testamentary trusts meeting this
exception:
a) Enter $0 on Line 21 of Form 500 UET and
b) Check the “500 UET Exception Attached” box on Form 501.
E. LINE 10 OVERPAYMENT. – Apply as a credit against the installment
the excess of the total of the amounts on Line 9 of the previous columns
over the total of the amounts on Line 8 of the previous columns. If no excess
enter zero.
F.
INSTALLMENT PAYMENTS. – If you made more than one payment
for an installment attach a separate computation for each payment. If you
filed your return and paid the balance of tax by January 31st of the following
year consider the balance paid as of January 15th.
G. FARMERS AND FISHERMAN. – If (1) your gross income from farming or fishing is at least two-thirds of your annual gross income and (2) you
filed Form 500 / 501 and paid the tax on or before March 1, of the following
year you may be exempt from penalties for underpayment of estimated tax.
If so, enter $0 on line 21 of Form 500UET and check the "500 UET Exception
Attached" box on Form 500 and do not complete rest of this form.
If you meet this gross income test but did not file a return or pay the tax
when due, compute the penalty on the tax due for the last quarter only by
using the following schedule:

HOW TO FIGURE THE PENALTY FOR FARMERS AND FISHERMEN (Complete Lines 1 through 6)
Enter amount listed on Line 3, Page 1
_____________________________________
Enter 66 2/3% of the amount shown on Line 1
_____________________________________
Amount withheld during current year and amounts paid or credited by January 15 of the following year
_____________________________________
Underpayment of Estimated Tax (subtract Line 3 from Line 2)
_____________________________________
Number of days from January 15 to date of payment or April 15 whichever is earlier
_____________________________________
Penalty (9 percent a year on the amount shown on Line 4, for the number of days shown on Line 5)
_____________________________________

Enter the amount of penalty in the space provided on Form 500 / 501 as “Penalty for underpayment of estimated tax,” then increase the balance or decrease the amount “overpaid” accordingly.