Michigan Underpayment of Estimated Income Tax

Underpayment of Estimated Income Tax
2023 MICHIGAN Underpayment of Estimated Income Tax MI-2210
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Michigan Department of Treasury (Rev. 10-23), Page 1 of 2

Issued under authority of
Public Act 281 of 1967,
as amended.

2023 MICHIGAN Underpayment of Estimated Income Tax MI-2210

Include with Form MI-1040 or MI-1041. Round all money items to whole dollars. Type or print in blue or black ink.
Year (YYYY)

Month-Year (MM-YYYY)

1. For calendar year 2023 or taxable year beginning:

and ending:

2. Filer’s Name Shown on Tax Return

PART 1: ESTIMATED TAX REQUIRED FOR THE YEAR

4. Enter 2022 tax. Subtract the sum of MI-1040 lines 25, 26, 27b, 28 and 29 from line 21 (see instructions).........................
5. Enter 2023 tax. Subtract the sum of MI-1040 lines 25, 26, 27b, 28 and 29 from line 20 (Fiduciaries, see instructions). .....
6. Multiply amount on line 5 by 90% (0.9). ......................................................................................................................
7. Enter the smaller of lines 4 or 6....................................................................................................................................
Check this box if you use the annualized income installment method. If your income varied during the year,
8.
this method may reduce the amount of one or more required installments.
PAYMENT DUE DATES
NOTE: Complete lines 10 through 21 one column at a time.

Attachment 12

3. Identifying Number

A
April 18, 2023

B
June 15, 2023

April 18, 2023

June 15, 2023

June 30, 2023

June 30, 2023

4.
5.
6.
7.

C
Sept. 15, 2023

00
00
00
00

D
Jan. 16, 2024

9. Divide the amount on line 7 by four. Enter in each column.
CAUTION: If annualizing, enter amount from Worksheet line 16.
10. Estimated tax paid and withheld. (For column A only, enter
amount from line 10 on line 14.)
11. Enter amount, if any, from line 17 of the previous column.
12. Add lines 10 and 11.
13. Add lines 15 and 16 of the previous column and enter the
result here.
14. Subtract line 13 from line 12. If less than zero, enter “0”
(For column A only, enter the amount from line 10.)
15. Remaining underpayment from previous period. If amount on
line 14 is zero, subtract line 12 from line 13 and enter result here.
Otherwise, go to line 16.
16. UNDERPAYMENT. If line 9 is greater than or equal to line 14,
subtract line 14 from line 9 and enter the result here. Then go
to line 10 of the next column. Otherwise, go to line 17.
17. OVERPAYMENT. If line 14 is greater than line 9, subtract line 9
from line 14 and enter here. Then go to line 10 of next column.

PART 2: FIGURING THE INTEREST
18. Underpayment from line 16.
19. a. Rate Period 1: 5.65%. April 18, 2023 - June 30, 2023
Computation starting date for this period:
b. Number of days from date on line 19a to the date line 18
was paid or June 30, 2023, whichever is earlier. If June 30 is
earlier, enter 73 and 15 respectively.
c. 0.0001548 x days on line 19b x underpayment on line 18.
20. a. Rate Period 2: 8.25%. July 1, 2023 - Dec. 31, 2023
Computation starting date for this period:

Sept. 15, 2023

b. Number of days from date on line 20a to the date line 18
was paid or Dec. 31, 2023, whichever is earlier. If Dec. 31 is
earlier, enter 184, 184 and 107 respectively.
c. 0.0002260 x days on line 20b x underpayment on line 18.

+ 0000

2023 53 01 27 1

Continue on page 2. This form cannot be
processed if page 2 is not completed and included.

2023 MI-2210, Page 2 of 2

21.

Identifying Number

a. Rate Period 3: 9.30%. Jan. 1, 2024 - June 30, 2024
Computation starting date for this period:

Dec. 31, 2023

Dec. 31, 2023

Dec. 31, 2023

Jan. 16, 2024

b. Number of days from date on line 21a to the date line 18
was paid or April 15, 2024, whichever is earlier. If April 15 is
earlier, enter 106, 106, 106 and 90 respectively.
c. 0.0002541 x days on line 21b x underpayment on line 18.
22.

TOTAL INTEREST. Add amounts on lines 19c, 20c and 21c in all columns. Enter the total interest here
and on the appropriate line on your MI-1040 or MI-1041 ...................................................................................

PART 3: FIGURING THE
PENALTY

A
April 18, 2023

B
June 15, 2023

00

22.

C
Sept. 15, 2023

D
Jan. 16, 2024

23. Underpayment (see instructions).........................

23.

00

00

00

00

24. Enter 25% (0.25) or 10% (0.10) (see instructions)

24.

%

%

%

%

25.

Multiply amount on line 23 by line 24. .................

25.

00

00

00

00

26.

TOTAL PENALTY. Add line 25, columns A through D. Enter the total penalty here
and on the appropriate line on your MI-1040 or MI-1041 ................................................................................ 26.

00

27. Add lines 22 and 26. This is your total penalty and interest to be added to your tax due. ............................. 27.
This form computes penalty and interest for estimate vouchers to the date of payment or April 15, 2024, whichever is earlier. Additional penalty and
interest for late filing accrues on your annual return from April 15 to the date of payment.

00

ANNUALIZED INCOME WORKSHEET

Complete one column at a time. Line numbers refer to this Worksheet unless another form is listed.
Estates and trusts: Use the following period ending dates: 2/28/23, 4/30/23, 7/31/23 and 11/30/23.
Do not use the dates in the column headings below.

1. Enter total income subject to tax (reported on 2023
MI-1040, line 14) that is attributable to each period in the
corresponding column .............................................................
2. Annualization amounts (Fiduciaries, see instructions) ..........
3. Annualized total income. Multiply line 1 by line 2 ..............
4. Enter total exemption allowance (MI-1040, line 15) ..............
5. Subtract line 4 from line 3......................................................
6. Multiply line 5 by 2023 tax rate 4.05% (0.0405) ....................

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

7. Enter the sum of your 2023 MI-1040 credits from lines 18b,
19b, 25, 26, 27b, 28 and 29 in each column ..........................

7.

8. Tax after credits. Subtract line 7 from line 6 (if less than zero,
enter “0”)................................................................................

8.

9. Multiply line 8 by 22.5% (1st period), 45% (2nd period),
67.5% (3rd period) and 90% (4th period). Enter the results in
each column ...........................................................................

9.

10. Enter combined amounts from line 16 of all previous
columns ..................................................................................
11. Subtract line 10 from line 9 (if less than zero, enter “0”)........

10.
11.

12. Required quarterly payment. Divide the amount on MI-2210,
line 7, page 1, by four and enter the result in each column ...
13. Enter the amount from line 15 of the previous column ..........
14. Add lines 12 and 13...............................................................
15. Subtract line 11 from line 14 (if less than zero, enter “0”)......

12.
13.
14.
15.

16. Required installments. Enter the smaller of lines 14 or 11
here and on MI-2210, line 9, page 1.......................................

16.

+ 0000

2023 53 02 27 9

A
First 3 months
1-1 to 3-31-23

B
First 5 months
1-1 to 5-31-23

C
First 8 months
1-1 to 8-31-23

D
12 months
1-1 to 12-31-23

4

2.4

1.5

1

(line 8 x 22.5%)

(line 8 x 45%)

(line 8 x 67.5%)

(line 8 x 90%)

2023 MI-2210, Page 3

Instructions for Form MI-2210,
Underpayment of Estimated Income Tax

General Instructions
Use this form to determine if you owe penalty and interest
for failing to make estimated payments or for underpaying
the estimated tax due. You can be charged interest (and
possibly penalty) if your payment was insufficient or late
in any quarter. This is true even if you are due a refund
when you file your tax return. The interest and penalty
are figured separately for each due date; you could still
owe interest and penalty even if you made up an earlier
underpayment with an overpayment later. No penalty is
charged if estimates were not required in the immediately
preceding year; however, interest may still be due.
The estimated tax payments must be made timely, in four
equal installments, and the sum of the installments must
equal:
• 90 percent of the tax shown on your 2023 tax return, or
• 100 percent of the tax shown on your 2022 tax return,
or
• 110 percent of the tax shown on your 2022 return if 2022
Adjusted Gross Income (AGI) was more than $150,000
if filing joint or single ($75,000 if your 2022 filing status
is married filing separately).
Because this is a complicated form, you may choose to
have Treasury compute your interest and penalty and
send you a bill instead of completing the form yourself. If
you want Treasury to figure your interest, complete your
MI-1040 form as usual, leaving the interest line blank, and
do not attach form MI-2210. Interest computed on this
form and penalty charged for failing to file or underpaying
estimates will be the same regardless of whether you pay
with your return or if Treasury bills you.
You may avoid penalty and interest and should not file
this form IF:
• You had no tax liability for 2022 (if you had to file),
or you were not required to file a 2022 return and your
2022 federal tax return was for a full 12 months.
• The total tax on your 2023 return minus the amount you
paid in withholding and all your credits is $500 or less.
• You made timely estimated tax payments in equal
installments that were at least 100% of your 2022 tax or
90% of your 2023 tax.
Annualizing

If you receive income unevenly during the year (e.g., from
a seasonal business, capital gain, severance pay or bonus)
you may annualize your income.
Complete the MI-2210 form and the Annualized Income
Worksheet (Worksheet) and include them with your
Michigan annual tax return (individual or fiduciary).

Special Rules for Farmers, Fishermen, and
Seafarers

Do not file this form if BOTH of these apply:

• Your gross income from farming, fishing or seafaring
is at least 2/3 of your annual gross income for 2022 or
2023, AND
• You filed your MI-1040 and paid the entire tax due by
March 1, 2024.
Where to Get Forms

If you need to file estimated tax, a 2024 Michigan estimated
income tax formset (MI-1040ES for individuals, MI-1041ES
for fiduciaries) is available at www.michigan.gov/taxes or
by calling 517-636-4486 to have tax forms mailed to you.
Visit www.michigan.gov/iit for information on how to
make estimated payments using Treasury’s e-Payments
service.
Line-by-Line Instructions
Before completing Part 1, add MI-1040, lines 25, 26, 27b,
28, 29 and 30. Subtract this sum from MI-1040, line 20. If
the result is $500 or less, do not complete this form. For
MI-1041, subtract the sum of lines 18, 19 and 20 from line 17.
If the result is $500 or less, do not complete this form.
FISCAL-YEAR FILERS: Change due dates and interest
rates to correspond with your tax year.
Part 1: Estimated Tax Required for the Year
Lines 2 and 3: For individual income tax filers, enter the
filer’s name and full nine-digit Social Security number at
the top of the form. For fiduciary filers, enter the name of
the estate or trust and full Federal Employer Identification
Number (FEIN).
Line 4: Figure your 2022 tax from your 2022 return. On
the MI-1040 form, subtract the sum of lines 25, 26, 27b, 28
and 29 from line 21. Enter that amount here or, if the AGI
on your 2022 return is more than $150,000 if filing joint or
single ($75,000 if married filing separately for 2022), enter
110% of that amount. Fiduciaries, subtract the total of lines
18 and 19 from line 17 of your 2022 MI-1041.
Line 5: Figure your 2023 tax. On the MI-1040 form,
subtract the total of lines 25, 26, 27b, 28 and 29 from
line 20 and enter here. Fiduciaries, subtract the total of
lines 18 and 19 from line 17 of your 2023 MI-1041.
Line 9: If you did not receive your income evenly
throughout the year, you may annualize your income. See
the instructions and the Worksheet on this form.
Line 10: Enter the estimated tax payments you made plus
any withholding. Note the following:
• One-fourth of your total withholding is considered paid
on each due date unless you can document the dates the
tax was withheld.

2023 MI-2210, Page 4

• An overpayment from 2022 that has been credited
forward to 2023 will be applied to the first installment.
• Do not enter extension payments on this form.
In column A, enter the estimated tax payments made
by April 18, 2023, that were for the 2023 tax year. In
column B, enter payments made after April 18 and through
June 15, 2023. In column C, enter payments made after
June 15 and through September 15, 2023. In column D,
enter payments made after September 15, 2023, and through
January 16, 2024. Extension payments or other payments
received after January 16, 2024 are not considered
estimated tax payments for tax year 2023.
Part 2: Figuring the Interest
The MI-2210 computes interest to April 15, 2024, or the
date of payment, whichever is earlier. This part of the form
breaks down underpayments to the payment period they
are due, then gives the interest rate for that period. Interest
is figured for the number of days the installment remained
unpaid. All payments are applied to any underpayment first,
regardless of when the payment is received. The balance
(if any) is applied to the next period.
NOTE: Complete lines 10 through 21 for column A
before going to column B, etc. You need only complete
each column to the date the payment was made. If the total
underpayment for any payment period was not paid off with
one payment, you may need to do several calculations in
each column.
Example: Your tax due each period is $2,000. You
have an underpayment of $1,000 for the first period (due
April 18). On June 10 you send $2,000 to pay the second
installment. But, $1,000 of this payment goes toward your
$1,000 underpayment first. Interest is computed on $1,000
from April 18 to June 10 (53 days). The remaining $1,000
is applied to your second installment payment, creating a
second period underpayment of $1,000.
Interest will continue to accrue on this $1,000 until another
payment is received.
Interest rates are set by Treasury twice each year for
six-month periods starting January 1 and July 1. The rate is
1 percent above the prime rate in Michigan. For example,
if the Michigan prime rate is 5 percent, your interest
rate for completing the MI-2210 is 6 percent for that
six-month period. For current interest rates, visit our
website at www.michigan.gov/taxes for a copy of Revenue
Administrative Bulletin 2023-17.
Part 3: Figuring the Penalty
Penalty is 25 percent of the tax due (minimum $25 per
quarter) for failing to file estimated payments or 10 percent
(minimum $10 per quarter) for failing to pay enough with
your estimates or paying late.
Line 23: The underpayment for the penalty charge is
figured the same way as the underpayment for interest.

Exceptions:
• Payments are applied in the quarter they are received.
• If an overpayment occurs in any quarter, the
overpayment amount is carried forward to the next
quarter and applied as a timely payment.
• Payments are not carried back to offset underpayments
in previous quarters.
Subtract lines 10 and 11 from line 9 in each column. The
amount on line 23 cannot be less than zero.
Line 24: Enter 25 percent if estimated tax payments
were not made for 2023. Enter 10 percent if estimated tax
payments were made for 2023.
Example: In the example in Part 2, the $2,000 payment
received on June 10 is applied to the $2,000 required
payment in the second quarter. The penalty in the first
quarter is $100 (10 percent of the $1,000 underpayment in
the first quarter). The penalty in the second quarter would
be zero.
Annualized Income Worksheet
You must annualize for the entire year by completing all
four columns.
Complete one column at a time.
Line 1: This line must be the year-to-date total for each
period in the appropriate column. Each column is an
accumulating total and should include the amount from the
previous column plus any additional income earned up to
that date. The last column should equal the amount on your
MI-1040, line 14. For fiduciary filers, the last column should
equal the amount on your MI-1041, line 12.
Example: You earned $5,000 in the first three months of
the year. You earned an additional $4,000 during April and
May. Enter on Worksheet, line 1, $5,000 in the first column
and $9,000 in the second column.
Line 2: Fiduciary filers, do not use the amounts shown
in columns A through D. Instead, use 6, 3, 1.71429, and
1.09091, respectively, as the annualization amounts.
Line 7: Fiduciary filers, enter the sum of your 2023
MI-1041 credits from lines 14b, 15b, 18 and 19 in each
column.
Line 12: Each entry on line 12 of the Annualized
Worksheet will be the result of MI-2210, Part 1, line 7,
divided by four, regardless of how the income is earned.
If you add line 16 of the Annualized Worksheet across the
columns, the sum should equal the total shown on MI-2210,
line 7.
Taxpayers who annualize must also enter 25 percent of
tax withheld in each column of the MI-2210, line 10, or
submit documentation to substantiate uneven distribution
of withholding.