Iowa Underpayment of Estimated Tax by Individuals 45-007

Underpayment of Estimated Tax by Individuals 45-007
IA 2210 Underpayment of Estimated Tax by Individuals, 45-007
2023 IA 2210

Iowa Underpayment of Estimated Tax by Individuals
tax.iowa.gov
Name(s): _____________________________________ Social Security Number: _______________
How to compute your underpayment (See instructions)
1. Enter your 2023 tax from IA 1040, line 18 ......................................................... 1. _____________
2. Credits
a. Iowa Fuel Tax Credit from IA 1040, line 23 ............................. a. ____________
b. Child and Dependent Care Credit or Early Childhood
Development Credit from IA 1040, line 24 ............................... b. ____________
c. Iowa Earned Income Tax Credit from IA 1040, line 25 ............ c. ____________
d. Other refundable credits from IA 1040, line 26 ........................ d. ____________
e. Composite and PTET credits from IA 1040, line 27 ................. e. ____________
Total. Add lines 2a through 2e ..................................................................... 2. _____________
3. Balance. Subtract line 2 from line 1 ................................................................... 3. _____________
4. Multiply line 3 by 90% (.90). If less than $200, STOP!
Do not complete this form ................................................................................. 4. _____________
5. Enter your 2022 tax (less applicable 2022 credits)
If 2022 federal AGI plus bonus depreciation/179 adjustment from IA 1040, line 14,
and all other Iowa net income decoupling adjustments exceeds $150,000
($75,000 if married filing separate), enter 110% (1.10) of your 2022 Iowa tax ....... 5. _____________
6. Enter the smaller amount of line 4 or line 5 ....................................................... 6. _____________

45-007a (10/20/2023)

2023 IA 2210, page 2

Due Dates of Installments

Installment 1:
April 30, 2023

Installment 2:
June 30, 2023

Installment 3:
Installment 4:
Sept. 30, 2023 Jan. 31, 2024

7. Divide the amount on line 6 by the
number of installments required for
the years.
8. Annualized installment. See
instructions.
9. Required installment. Enter the
amount on line 7 or line 8, if
applicable. See instructions.
How to Compute the Penalty: Complete lines 10 through 15. See Instructions.
10. Installment payments. Payments
are applied to the earliest unpaid
installment balance. Any
overpayment is carried to the next
installment.
11. Date of payment.

12a. Number of days inclusively from
due date of installment to date of
payment or 12/31/2023, whichever
is earlier.
12b. Number of days from 01/01/2024 or
due date of installment, whichever
is later, to the date of payment or
04/30/2024, whichever is earlier.
13a. 0.016438% (.00016438) per day on
the amount shown on line 10, for
the number of days shown on line
12a.
13b. 0.027322% (.00027322) per day on
the amount shown on line 10, for
the number of days shown on line
12b.
14. Add lines 13a and 13b.
15. Penalty: Add the four columns of line 14 and enter here and on IA 1040, line 35 ............... 15. _______________

45-007b (10/16/2023)

2023 IA 2210 Instructions, page 1
Who Must File IA 2210?
If you are an individual taxpayer, other than a
qualifying farmer or fisher, you may use this form
to determine whether your income tax was
sufficiently paid throughout the year by
withholding or estimated payments. If payments
were not sufficient, you may owe a penalty.
Estimated payments are credited to only one
individual. Each individual required to make
estimated payments must file an estimated
payment under their name and SSN. The IA 2210
penalty must also be calculated separately by
each individual for filing status 3 (married filing
separate returns).
The IA 2210S is a short method of calculating
underpayment of estimated tax by individuals.
Taxpayers who did not make any estimated
payments, or paid the same amount of estimated
tax on each of the four payment due dates, may
use the IA 2210S instead of the IA 2210.
Filing an Estimate and Paying the Tax,
Calendar Year Taxpayers
If you file returns on a calendar-year basis and are
required to file form IA 1040ES, you are generally
required to pay the tax in four installments with the
first installment due by April 30.
See instructions for line 8 if your income varies
throughout the year.

Period Requirements
Due Date of Installments
Required
First Met
Installment
Between January 1 and
April 30
4
April 1
Between April 2 and June 1
June 30
3
Between June 2 and
September 30
2
September 1
After September 1

January 31

1

Note: If a due date ends on a weekend or
holiday as defined in Iowa Code section 421.9A,
substitute the next regular business day for the
due date.
Line 5: Enter your 2022 tax liability as reported
on IA 1040, line 53 less 2022 total refundable
credits as reported on IA 1040, lines 59, 60, 61,
and 62.
If your 2022 federal AGI exceeds $150,000
($75,000 for married filing separate federal
returns) including any bonus depreciation
adjustment/section 179 adjustment from IA 1040,

line 14, and all other Iowa net income decoupling,
you must use 110% of the 2022 Iowa tax less
credits.
Taxpayers may avoid underpayment penalty if their
estimated payments for 2023, made on or before
the prescribed dates for payment, plus Iowa tax
withheld for 2023 is equal to the lesser of:
• 90% of the tax shown on the 2023 return; or
• 100% of the tax shown on the 2022 return if
your 2022 federal AGI plus any bonus
depreciation/section 179 adjustment from IA
1040, line 14 and all other Iowa net income
decoupling is $150,000 or less ($75,000 or
less for married filing separate federal
returns); or
• 110% of the tax shown on the 2022 return if
your 2022 federal AGI plus any bonus
depreciation/section 179 adjustment from IA
1040, line 14 and all other Iowa net income
decoupling is greater than $150,000 (or
greater than $75,000 for married filing
separate federal returns).
Your 2022 return must have covered a period of
12 months.
Line 8: Tax on Annualized 2023 Income If your
income varies throughout the tax year, you may
be able to reduce or eliminate the amount of one
or more of the required installments by using the
annualized income installment method. If you
use this method, you must check the box on IA
1040, line 35. See IA 2210 Schedule AI and
instructions.
Line 9 : If you used the annualized income
installment method to figure your required
payments, enter the amount from line 8.
Otherwise, enter the amount from line 7.
Line 10: Installment payments Enter your
payments or portion of payments needed to
satisfy the amount of the required installment.
Your estimated payments and withholding are
applied to the earliest unpaid installment. It does
not matter that the payment is designated for a
later period. Any overpayment is carried to the
next
unpaid
installment.
If
additional
computations are required beyond the three
allotted lines on this form, include a separate
sheet for each computation.

45-007c (10/20/2023)

2023 IA 2210 Instructions, page 2
You may consider an equal part of the income
tax withheld during the year as paid on each
required installment date, unless you can
establish the dates on which the withholding
occurred and consider the tax paid on those
dates.
Line 11: Enter the date the payment was made
or, if withholding, the due date of the installment.
If more than one payment is applied to pay the
installment, enter a date for each payment.
Line 13: To compute penalty, use the following
formula:
Penalty (line 13) = daily % rate x number of
days (line 12) x underpayment (line 10)
The daily percentage rate is:
• 6% per annum = 0.016438% per day
(01/01/23 - 12/31/23)
• 10% per annum = 0.027322% per day
(01/01/24 - 12/31/24)
Waiver of Penalty: The underpayment of
estimated tax penalty may be waived if the
underpayment was due to casualty, disaster, or

other unusual circumstances. The penalty may
also be waived if the taxpayer retired at age 62 or
later, or became disabled in the tax year for which
the estimated payments were required, and such
underpayment was due to reasonable cause and not
to willful neglect.
Farmers and Fishers: You are exempt from
underpayment of estimated tax penalty if your
gross income from farming or fishing is at least
two-thirds of your annual gross income, and
1) You filed IA 1040 and paid the tax on or before
March 1, 2024, or
2) You paid the estimated tax in one payment on
or before January 15, 2024.
If you meet this gross income test but did not file
a return or pay the tax when due, use form IA
2210F instead of this form to determine if you
owe a penalty.
Note: If a due date ends on a weekend or
holiday as defined in Iowa Code section 421.9A,
substitute the due date for the next regular
business day.

45-007d (10/16/2023)