Indiana Underpayment of Estimated Tax by Individuals

Underpayment of Estimated Tax by Individuals
Form IT-2210
Schedule

IT-2210
State Form 46002
(R24 / 9-23)

Enclosure
Sequence No. 13

Indiana Department of Revenue

2023 Underpayment of
Estimated Tax By Individuals
Enclose with Form IT-40 or Form IT-40PNR

Your Social
Security Number

Name(s) shown on Form IT-40/IT-40PNR

Section A - Farmers and Fishermen Only - See Instructions
Annual Gross Income
from All Sources

Gross Income from
Farming and Fishing

Two-Thirds of
Gross Income

2022	00	 X 66.7% =	00	
2023	00	 X 66.7% =	00	

Section C - Required Annual Payment

00
00

Section B:
Early Filers

Check box if you filed
your 2023 tax return
and paid the total tax
due by Jan. 31, 2024
Round all entries

1.	2023 tax_____________________________________________________________________	1	00
2.	2023 credits (not including withholding credits or estimated tax payments)_________________	2	00
3.	Subtract line 2 from line 1________________________________________________________	3	00
4.	Multiply line 3 by 90% (.90) (farmers/fishermen multiply by .667, see instructions)____________	4	00
5.	2023 withholding tax and PTET credit______________________________________________	5	00
6.	Subtract line 5 from line 3 - If less than $1,000, STOP HERE! You do not owe a penalty_____ 	
7.	Prior year’s tax (see instructions)__________________________________________________	

6	00
7	00

8.	Minimum required annual payment - Enter the lesser of line 4 or line 7 - If less than or equal
to the amount on line 5, STOP HERE! You do not owe a penalty______________________	8	00

	
Section D - Short Method - Read the instructions to determine if you can use the short method

9.	Enter the withholding tax and PTET credit amount from line 5 above______________________ 	9	00

10.	Enter the total amount, if any, of estimated tax payments you made for tax year 2023__________ 	10	00

11.	Add lines 9 and 10_____________________________________________________________	11	00
12.	Total Underpayment. Subtract line 11 from line 8. If zero or less, STOP HERE! You do not
owe a penalty. Attach this schedule to your tax return__________________________________	12	00
13.	Multiply line 12 by 10% (.10). Enter this amount on line 20 on Form IT-40 or Form IT-40PNR___	13	00

Section E - Regular Method

A
1st Installment
April 18, 2023

Installment Period Due Dates
B
2nd Installment
June 15, 2023

C
3rd Installment
September 15, 2023

D
4th Installment
January 16, 2024

14.	Minimum required installment
payment: divide amount on
line 8 by 4____________________ 	14	00	00	00	14	00
15.	2023 withholding and PTET Divide line 5 by 4______________ 	15	00	00	00	15	00

STOP! Complete lines 16 through 19 for each column before going to the next one.
16.	2023 estimated taxes paid per period	 16	00	00	00	16	00

17.	Total installment payments
(add lines 15 and 16)___________ 	 17	00	00	00	 17	00
18.	Installment period overpayment___ 	18	00	00	00	18	00
19.	Installment period underpayment__ 	19	00	00	00	19	00
20.	Total underpayment - Add line 19, Columns A + B + C + D and enter total here_____________________ 	20	00
21.	Underpayment penalty - Multiply line 20 by 10%. Enter this amount on line 20 on Form IT-40 or IT-40PNR	21	00

*24100000000*
24100000000

Schedule

IT-2210

Indiana Department of Revenue

Underpayment of Estimated Tax by Individuals

WHAT is the purpose of Schedule
IT-2210? This schedule is used for one
of two reasons:
	
1.	 To help you figure any penalty you
owe for not paying enough tax
throughout the year, or

WHAT ELSE do I need to know about
this schedule?

2.	 To show you paid enough tax
throughout the year to be exempt
from the penalty.

•	 All taxpayers need to know about
the short method of figuring the
penalty in Section D.

WHY is a penalty charged? The
Indiana income tax system is a “pay
as you go” system. Many taxpayers
have enough taxes withheld from their
income throughout the year to cover
their year-end total tax due. However,
if you don’t have taxes withheld
from your income, or if you don’t
have enough tax withheld from your
income, you may owe a penalty for
underpaying estimated tax.

•	 If you received seasonal income
(i.e., you had fireworks sales, you
worked during a Christmas season,
etc.) that is not evenly received
throughout the year, you might want
to complete Schedule IT-2210A,
Annualized Income Schedule.
Annualization could possibly
reduce your required installment
tax payments. You may download
Schedule IT-2210A from the
following web address:
www.in.gov/dor/tax-forms/2023individual-income-tax-forms/.

WHO should use Schedule IT-2210?
You should complete this schedule if:
•	 The amount you owe for tax year
2023, after credits, is $1,000 or
more. The amount you owe is from
Form IT-40 and Form IT-40PNR,
line 15 minus line 14, or
•	 You underpaid the minimum
amount due for one or more of the
installment periods. This is true
even if you are due a refund.
HOW much is the penalty? The
penalty is 10% of the underpayment
for each underpaid installment period.
That is why Section E of this schedule
is set up by periods, and should be
filled out one column at a time.
WHAT DO I NEED to complete this
form? You’ll need a copy of:
•	 Your completed 2023 Form IT-40 or
Form IT-40PNR,
•	 Your 2022 Form IT-40 or Form IT40PNR, and
•	 Records of actual estimated tax
payments you made for 2023.

•	 If you are a farmer or fisherman,
you should review Section A below
and Section D - Short Method
instructions on page 2.

Section A – Farmers and
Fishermen
If at least two-thirds of your gross
income for 2022 or 2023 was from
farming or fishing, you have only one
payment due date for 2023 estimated
tax - Jan. 16, 2024.
To meet an exception to the
underpayment penalty for 2023, you
may use Option 1 or Option 2.
If you are eligible for treatment as a
farmer or fisherman, please mark “F”
in the box on Line 20a of Form IT-40
or Form IT-40PNR.
Option 1 – Pay all your estimated tax
by Jan. 16, 2024, and file your Form
IT-40 by April 15, 2024, OR
Option 2 – File your Form IT-40 by
March 1, 2024, and pay all the tax
due. You are not required to make an
estimated tax payment if you choose
this second option. If you pay all the
tax due, you will not be penalized for
failure to pay estimated tax.

Section B – Early Filers
If you file your individual income tax
return and pay the tax due by Jan. 31,
2024, you will not be required to make
a fourth installment estimated tax
payment. For additional information
see the instructions for line 16.
Section C – Required Annual
Payments
Section C will determine if you should
have paid estimated taxes during the
year and the minimum amount required.
Line 1 – 2023 Tax: Add together
the state adjusted gross income tax
and county income tax from lines 8
and 9 of either Form IT-40 or Form
IT-40PNR, any recapture of certain
Indiana credits from line 3 of Indiana’s
Schedule 4 or Schedule E, plus
any nonresident professional team
member’s county tax from Schedule E,
line 4. Enter the total here.
Line 2 – 2023 Credits: Add together
any credits from lines 5 through 12 of
Indiana’s Schedule 5 or Schedule F,
plus any offset credits from line 8 of
Indiana’s Schedule 6 or Schedule G.
Enter the total here.
Line 4 – To determine 90% of your
total expected tax, multiply line 3 by
90% (.90).
Note. If at least 2/3 of your gross in­
come is from farming or fishing, multi­
ply line 3 by 66 2/3% (.667).
Line 5 – 2023 Withholding and Pass
Through Entity Tax: Add together
any state and county withholding
amounts from lines 1 and 2 along with
any pass through entity tax (PTET)
from line 3 of Indiana’s Schedule 5 or
Schedule F. Enter the total here.
Line 6 – Subtract line 5 from line 3. If
this amount is less than $1,000, you
do not owe a penalty. Stop here and
keep a copy as DOR may request to
see it at a later date.

Line 7 – Prior Year’s Tax
Exception: See if you are eligible for
any of the following exceptions.
•	

•	

•	

If you filed a 2022 Form IT-40,
add the tax from lines 8 and 9;
subtract the total of the credits
on line 13 plus any amounts on
Schedule 5, lines 4 through 11.
Enter the result here. Note. See
CAUTION box below.
If you filed a 2022 Form
IT-40PNR as a full-year
nonresident, add the tax from
lines 8 and 9; subtract the total
of the credits on line 13 plus any
amounts on Schedule F, lines 4
through 11. Enter the result here.
Note. See CAUTION box below
If your federal AGI for 2022 was
more than $150,000 ($75,000
if married filing separately) and
you are not subject to the special
rules for farmers or fishermen,
enter the result multiplied by
110% (1.10). See the CAUTION
box on this page for this
calculation.

•	 If you filed a 2022 Form IT-

40PNR as a part-year resident
of Indiana, you must figure the
tax for that year on an annualized
basis. See the instruc­tion and
Example for when 2022 Form IT40PNR was filed as a part-year
resident in the right-hand column.

Example for when 2022 Form IT-40PNR was filed as a part-year resident: If you filed
a 2022 Form IT-40PNR as a part-year resident of Indiana, you must figure the tax for that
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
resident. Then figure the state tax and county tax, if applicable, by 1) subtracting your 2023
exemptions from the result and 2) multiplying that total by the combined state and applicable
county tax rate(s) from your 2023 Indiana individual income tax return. See the example
below. Note. See CAUTION box below.
Example
•	 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.
•	 Her 2023 total exemptions are $3,500.
•	 The 2023 adjusted gross income tax rate is 3.15% (.0315). Her 2023 county tax rate
is .01 (for a 4.15% [.0415] combined state and county tax rate).
Use Steps 1 - 4 below to figure her prior year’s tax exception for line 7 of the IT-2210.
Step 1		 $	 10,000 	
2022 Indiana income
				
x	 12	 months		
				$	
120,000	 annualized income	
						
Step 2		 $	120,000	
	 		
÷	
3.5		
					 34,286

annualized income
months of 2022 residency

Step 3		 $	 34,286	
				
-	 3,500	
					 30,786

2023 exemptions

Step 4		 $	 30,786
				
x 4.15%	
				 $ 1,278*

2023 combined state and county tax rate

*	 The $1,278 Step 4 amount should be entered as an exception on line 7 of 		
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.

Line 8 – Minimum required annual
payment: Enter the lesser of line 4 or
line 7. If the line 7 entry is N/A, enter
the amount from line 4 on this line.
Continue to Section D or Section E,
whichever applies.
Section D – Short Method
You can use the short method only if:
•	 You made no estimated tax
payments, or
•	 You paid estimated tax in four
equal amounts by the due dates,
or

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
special rules for farmers and fishermen, you must enter 110% of last year’s tax (instead
of 100%) on line 7.
Example. Chris and Kate’s 2022 federal adjusted gross income is $158,000. They must take
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
b) 2022 IT-40 credits (line 13 plus Schedule 5, lines 4 through 10)	- 1,952
c) Subtotal........................................................................................$ 5,000
d) Exception to the penalty percentage............................................x 110%
e) Amount for line 7 of Schedule IT-2210.........................................$ 5,500

Note.	 If Chris and Kate’s 2022 federal adjusted gross income is less than or equal to
$150,000, they would enter $5,000 instead of $5,500 on line 7.

2

•	 At least two-thirds of your gross
income from 2022 or 2023 was from
farming or fishing and an estimated
tax payment (if any) was made by
Jan. 16, 2024.
You can’t use the short method if
either of the following applies:
•	 You made any estimated tax
payments late, or
•	 You made estimated payments in
unequal amounts.
Section E – Regular Method
Use the regular method if you aren’t
eligible to use the short method.
If you are a fiscal year taxpayer, you
must change the dates in Columns
A through D to correspond with your
fiscal year.
Line 14 – Minimum Required
Installment: Divide the amount on line
8 by four and enter the result in each
column.
If you are filing this year as a partyear resident on Form IT-40PNR, you
must divide line 8 by the number of
installment periods during which you
were a resident of Indiana.
Installment Periods Are:	
1st Period....... Jan. 1 to March 31
2nd Period...... April 1 to May 31
3rd Period....... June 1 to Aug. 31
4th Period....... Sept. 1 to Dec. 31
Line 15 – 2023 Withholding and
PTET
To determine your installment period
withholding credit, divide the amount
on line 5 by four and enter the result
in each column. See Income Tax
Information Bulletin #3 for special
instructions related to withholding that
does not occur evenly throughout
the year or for withholding and PTET
for nonresidents by partnerships, S
corporations, estates, or trusts.
STOP. Complete lines 16 through 19
for each column before going to the
next column.

Line 16 – 2023 Estimated Taxes
Paid: Enter the actual amount of
estimated tax you timely paid for each
installment period. Payments made
after the due dates are to be reported
in the next column.
Example. Joe paid $800 in estimated
taxes for 2023. His third installment
payment of $200 was not made until
Oct. 1 (after the Sept. 15 due date).
The $200 payment should be reported
as a 4th period installment payment.
Note for Early Filers. If you file your
individual income tax return and pay
the tax due by Jan. 31, 2024, you
will not be required to make a 4th
installment estimated tax payment.
You should include on line 16, Column
D, the amount of tax you paid with
your tax return (Form IT-40 or Form
IT-40PNR) minus any household
employment tax, use tax, recapture
of certain Indiana credits, nonresident
professional team member’s county
tax from Schedule F, and/or the
amount shown on the return to be
applied to your 2024 estimated tax
account.
Line 17 – Total Installment
Payments
To determine your total installment
payments, add lines 15 and 16 in each
column and enter that column’s total
here.
Line 18 – Installment Period
Overpayment: If the total payment (line
17) is more than the required payment
due (line 14) for an installment period,
enter the difference on this line. This
amount should then be added to line
16 in the next column after subtracting
any underpayment(s) shown on line
19 in the previous column(s).
Note. If, after subtracting any
underpayments, this amount is less
than zero, no overpayment will be
available to carry over to the next
installment period. Also, do not carry
over a negative figure if this amount is
less than zero.

3

Example. Dana had a $100
underpayment on line 19, Column A.
She had a $130 overpayment on line
18, Column B. The net overpayment
from the first two installment periods is
$30 ($130 minus $100). She will add
this net overpayment to any estimated
tax paid for the third installment period
on line 16, Column C.
Line 19 – Installment Period
Underpayment: If the total payment
(line 17) is less than the required tax
(line 14) for an installment period,
enter the difference on this line.
Line 21 – Underpayment Penalty
This amount must also be entered
on line 20 of your 2023 Form IT-40 or
Form IT-40PNR.
Who Must Submit Schedule
IT-2210?
•	 A farmer/fisherman utilizing
Section A, Option 1 or 2
•	

Early filers checking box in
Section B

•	

Anyone completing Section D or
Section E.

Important.	If you are filing your
IT-40 or IT-40PNR by mail, you
must enclose a copy of Schedule
IT-2210 to your tax return if you are
claiming an exception to the penalty
for the underpayment of estimated
tax.