Iowa Schedule AI Annualized Income Installment Method 45-011

Schedule AI Annualized Income Installment Method 45-011
IA 2210 Schedule AI, 45-011
2023 IA 2210 Schedule AI

Iowa Annualized Income Installment Method
tax.iowa.gov
Name(s): __________________________________________ Social Security Number: ____________________
1/1/23-3/31/23

1/1/23-5/31/23

1/1/23-8/31/23

1/1/23-12/31/23

4

2.4

1.5

1

22.5%

45%

67.5%

90%

1. Enter your Iowa taxable income from lA 1040, line 4 for
each period ................................................................................ 1.
2. Annualization amounts............................................................. 2.
3. Annualized income. Multiply line 1 by line 2 ......................... 3.
4. Compute your tax on the amount on line 3.
See instructions......................................................................... 4.
5. Enter any Iowa lump-sum tax for each period. See
instructions ................................................................................. 5.
6. Total tax. Add lines 4 and 5 ..................................................... 6.
7. Enter your exemption credits for the year (dollar amount) . 7.
8. For each period, enter your credits from IA 1040, lines 9,
10, 13, 15, and 17. See instructions ...................................... 8.
9. For each period enter your credits from IA 1040, lines 23,
24, 25, 26, and 27. See instructions ...................................... 9.
10. Balance. Subtract lines 7, 8, and 9 from line 6 ..................... 10.
11. Applicable percentage ............................................................. 11.
12. Multiply line 10 by line 11 ........................................................ 12.
13. Add the amounts in all preceding columns of line 19.

Note: Complete lines 13-19 of one column before going
to the next column ...................................................................... 13.

14. Subtract line 13 from line 12. If zero or less, enter 0 ........... 14.
15. Enter 25% (.25) of IA 2210, line 6 in each column .............. 15.
16. Enter amount from line 18 of the preceding column............ 16.
17. Add lines 15 and 14 and enter the total................................. 17.
18. Subtract line 14 from line 17. If zero or less, enter 0 ........... 18.
19. Enter the smaller of line 14 or line 17 here and on IA
2210, line 8 ................................................................................ 19.

45-011a (10/20/2023)

2023 IA 2210 Schedule AI Instructions
You have the option of using the regular or
annualized income installment method to
compute your estimated tax penalty. You may
be able to reduce or eliminate the amount of
one or more of your required installments by
using the annualized income installment
method if your income varied during the year.
For example, you operated a business on a
seasonal basis. You must use IA 2210 and IA
2210 Schedule AI to compute the required
installment amount to enter on IA 2210, line 8.
If you use IA 2210 Schedule AI for any
payment due date, you must use it for all
payment due dates. To compute the amount
of each required installment, IA 2210
Schedule AI automatically selects the smaller
of the annualized income installment or the
regular installment (increased by the amount
saved by using the annualized income
installment method in computing earlier
installments).
To use the annualized income installment
method, you must do all of the following:
• Complete both form IA 2210 and form IA
2210 Schedule AI. Enter the amount from
each column of IA 2210 Schedule AI, line
19 in each column of IA 2210, line 8.
• Check the box on the IA 1040, line 35
indicating that you used the annualized
income installment method.
• Include form IA 2210 and IA 2210 Schedule
AI with your return.

Line 4: Compute the tax using the 2023 IA
1040 tax rate schedule.
Line 5: Enter the Iowa lump-sum tax you
owed because of events that occurred during
the months shown in each column heading.
Line 7: Enter in each column your exemption
credit amounts from form IA 1040, line 8.
Line 8: Enter the credits from your IA 1040,
lines 9, 10, 13, 15, and 17, that you are entitled
to because of events that occurred during the
months shown in the column headings. Do not
annualize any credit. However, when
computing your credits, you must annualize
any item of income or deduction used to
compute the credit. Nonresidents, part-year
residents, and those claiming an Out-of-state
Tax Credit, see IA 1040 expanded instructions
at tax.iowa.gov.
Line 9: Enter the credits from your IA 1040,
lines 23, 24, 25, 26, and 27 that you are
entitled to because of events that occurred
during the months shown in the column
headings. Do not annualize any credit.
However, when computing your credits, you
must annualize any item of income or
deduction used to compute the credit.
Include a worksheet or tax form showing the
calculations for each credit claimed on line 18.
Line 19: Enter these amounts on form IA
2210, line 8.

Line 1: Compute your Iowa taxable income for
the months shown in each column heading.
Include the sum of all gross income/loss for
the period minus any adjustments to income
for the period.

45-011b (10/20/2023)