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
2024 IA 2210

Iowa Underpayment of Estimated Tax by Individuals
revenue.iowa.gov
Name(s): _____________________________________ Social Security Number: _______________
How to compute your underpayment (See instructions)
1. Enter your 2024 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. If less than $200, stop.
You do not owe a penalty. ................................................................................. 3. _____________
4. Multiply line 3 by 90% (.90). .............................................................................. 4. _____________
5. Enter Iowa income tax withheld from IA 1040, line 28 ............................................ 5. ______________
6. Subtract line 5 from line 3. If less than $200, stop. You do not owe a penalty. .... 6. _____________
7. Enter your 2023 tax (less applicable 2023 credits) ............................................ 7. _____________
If 2023 federal AGI plus Iowa net modifications reported on
IA 1040, line 3 exceeds $150,000 ($75,000 if married filing separate),
enter 110% (1.10) of your 2023 Iowa tax.
8. Enter the smaller amount of line 4 or line 7. ...................................................... 8. _____________
• If less than or equal to line 5, stop. You do not owe IA 2210 penalty.
• If greater than line 5, continue to line 9 for the optional short method, or line 17 for regular
method.
Optional Short method
9. Total Iowa income tax withheld and estimate payments from
IA 1040 lines 28 and 29. ......................................................................................... 9. ______________
10. Tax balance to calculate IA 2210S. Subtract line 9 from line 8 ............................... 10. _____________
• If less than $200, stop, you do not owe 2210 penalty
• If $200 or more, continue to line 11
11. Multiply line 10 by .0663406. If full payment was made on or after April 30, 2025,
line 11 is your IA 2210S penalty. Enter this amount on IA 1040, line 35 ................ 11. _____________
Note: If full payment was made before April 30, 2025, complete lines 12
through 16 to calculate your IA 2210S penalty.
12. Enter line 10 above or the full payment amount, whichever is less ........................ 12. _____________
13. Enter the number of days from date of payment to April 30.................................... 13. _____________
14. Multiply line 13 by line 12........................................................................................ 14. _____________
15. Multiply line 14 by .00027397 ................................................................................. 15. _____________
16. Balance: Subtract line 15 from line 11. This is your IA 2210S penalty.
Enter this amount on the IA 1040, line 35 ............................................................... 16. _____________

45-007a (01/14/2025)

2024 IA 2210, page 2

Due Dates of Installments

Installment 1:
April 30, 2024

Installment 2:
June 30, 2024

Installment 3:
Sept. 30, 2024

Installment 4:
Jan. 31, 2025

17. Divide the amount on line 8 by the number
of installments required for the years.
18. Annualized installment. See instructions.
19. Required installment. Enter the amount
from line 17 or 18, if applicable. See
instructions.

How to Compute the Penalty: Complete lines 20 through 26. See Instructions.
20. Apportioned Iowa income tax withheld

21. Application of installment payments.
Payments are applied to the earliest
unpaid installment balance. Any
overpayment is carried to the next
installment. If the amount of installment
payments is less than the required
installment, see instructions.
22. Date of payment(s).

23a. Number of days from the due date of
installment through and including the date
of payment or 12/31/2024, whichever is
earlier.
23b. Number of days from 01/01/2025 or the
due date of installment, whichever is later,
through and including the date of payment
or 04/30/2025, whichever is earlier.
24a. 0.027322% (.00027322) per day on the
amount shown on line 21, for the number
of days shown on line 23a.
24b. 0.027397% (.00027397) per day on the
amount shown on line 21, for the number
of days shown on line 23b.
25. Add the columns from lines 24a and 24b.

26. Penalty: Add the four columns of line 25. Enter here and on IA 1040, line 35............... 26. ___________

45-007b (10/22/2024)

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 make 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).
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 optional short method
instead of the regular method.
You must use the regular method to calculate
your IA 2210 penalty if you made any estimated
payments late or if you choose to annualize your
income for IA 2210 penalty calculations.
How to Avoid Underpayment Penalty
Taxpayers may avoid underpayment penalty if
their estimated payments for 2024, made on or
before the prescribed dates for payment, plus
Iowa tax withheld for 2024 is equal to the lesser
of:
• 90% of the tax shown on the 2024 return; or
• 100% of the tax shown on the 2023 return if
your 2023 federal AGI plus any Iowa net
modifications reported on IA 1040, line 3 is
$150,000 or less ($75,000 or less for married
filing separate federal returns); or
• 110% of the tax shown on the 2023 return if
your 2023 federal AGI plus any Iowa net
modifications reported on IA 1040, line 3 is
greater than $150,000 (or greater than
$75,000 for married filing separate federal
returns).
Your 2023 return must have covered (or would
have, had you been required to file) a period of
12 months.

2024 IA 2210 Instructions, page 1
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 18 if your income varies
throughout the year.
Period Requirements
First Met
Between January 1 and
April 1
Between April 2 and June 1
Between June 2 and
September 1
After September 1

Due Date of Installments
Installment Required
April 30

4

June 30

3

September 30

2

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 7: Enter your 2023 tax liability as reported
on IA 1040, line 18 less 2023 total refundable
credits as reported on IA 1040, lines 23, 24, 25,
26, and 27.
If your 2023 federal AGI exceeds $150,000
($75,000 for married filing separate federal
returns) including any Iowa net modifications
reported on IA 1040, line 3, you must use 110%
of the 2023 Iowa tax less credits.
Line 18: Tax on annualized 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 1 9 : Required installment If you used the
annualized income installment method to figure
your required payments, enter the amount from
line 18. Otherwise, enter the amount from line
17.
Line 20: Iowa income tax withheld You may
consider an equal part of the Iowa 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.

45-007c (10/14/2024)

Line
21: Application of installment
payments Enter your payments or portion of
payments needed to satisfy the amount of the
required installment. Your estimated payments
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.
If the amount of installment payments for a
quarter is less than the amount of required
installment payments, report the amount of
underpayment on line 21 and report the
payment date on line 22 as the date of the next
payment made. If no payment is made before
filing the return, report the payment date as the
due date of the tax return.
Line 22: Date of payment(s) 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.
If the amount of installment payments for a
quarter is less than the amount of required
installments,
report
the
amount
of
underpayment on line 21 and report the
payment date on line 22 as the date of the next
payment made. If no payment is made before
filing the return, report the payment date as the
due date of the tax return.
Line 23a: Report the number of days from the
due date of an installment to the earlier of the
date the payment is made or December 31,
2024. If the date of the payment is before the
due date of the installment payment, enter zero.
Line 23b: Report the number of days from the
later of January 1, 2025 or the due date of the
installment to the earlier of the date the
installment is paid or April 30, 2025. If the date
of the payment is before the due date of the
installment payment, enter zero.

2024 IA 2210 Instructions, page 2
Line 24: To compute penalty, use the following
formula:
Penalty (line 24) = daily % rate x number of days
(line 23) x underpayment (line 19)
The daily percentage rate is:
Line 24a: 10% per annum = 0.027322% per
day (01/01/24 - 12/31/24)
Line 24b: 10% per annum = 0.027397% per
day (01/01/25 - 12/31/25)
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
• You filed your IA 1040 and paid the tax
on or before March 1, 2025, or
• You paid the estimated tax in one
payment on or before January 15, 2025.
If you meet this gross income test but did not
file a return or pay the tax when due, use 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 (10/22/2024)