Iowa Underpayment of Estimated Tax by Farmers/Fishers 45-008

Underpayment of Estimated Tax by Farmers/Fishers 45-008
IA 2210F Underpayment of Estimated Tax by Farmers and Fishers, 45-008
2023 IA 2210F

Iowa Underpayment of Estimated Tax by Farmers and Fishers
tax.iowa.gov
Name(s): _______________________________________ Social Security Number: _______________
How to Compute Your Underpayment (See Instructions)
If at least two-thirds of gross annual income is from farming and fishing, the return was filed,
and any tax due was paid by March 1, 2024, check the box, proceed to line 11 and enter “0” ............ ☐
1. Enter amount from 2023 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 66.7% (.667) ........................................................................... 4. ____________
5.Enter your 2022 tax. See instructions .............................................................. 5. ____________
6.Enter the smaller amount of line 4 or line 5....................................................... 6. ____________
7. Amounts withheld during 2023 and amounts paid or credited by January 15, 2024 ... 7. ____________
8.Underpayment of estimated tax. Subtract line 7 from line 6..................................... 8. ____________
Exception Which Avoids the Penalty
9. Exception: Tax on 2022 return. See instructions .............................................. 9. ____________
How to Compute the Penalty
10. Number of days from January 15, 2024, to date of payment or April 30, 2024,
whichever is earlier. See instructions ............................................................ 10.____________
11. Penalty: See instructions. Enter here and on IA 1040, line 35 ................................. 11.____________

45-008a (10/26/2023)

2023 IA 2210F Instructions
Who must file IA 2210F?
Persons whose gross income from farming or
fishing is at least two-thirds of their gross annual
income from all sources should use this form to
determine if their income tax was sufficiently
paid throughout the year by withholding and/or
installment payments. If not, a penalty may be
imposed on the underpayment of the taxes. This
form will help you determine if you are exempt
from a penalty. See line 9 instructions below.
Filing an Estimate and Paying the Tax: If
you file returns on a calendar-year basis and
you 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. You can avoid this filing in one of the
two ways noted:
1. File the installment and pay the tax in full by
January 15, 2024.
2. File your return and pay the tax in full by
March 1, 2024. If this exception is met,
check the box at the top of page 1 indicating
that at least two-thirds of gross annual
income is from farming and fishing and the
return was filed and any tax due was paid
by March 1, 2024. If this box is checked,
proceed to line 11 and enter zero.
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: How to Compute Underpayment: If line
8 results in an underpayment, refer to line 9 to
determine if the exception will avoid the penalty.
Line 9: Penalty Exception: No penalty will be
imposed if your tax payments (amount on line
7) were made on or before the prescribed dates
for payment and equal or exceed the amount
determined under the following exception.
Prior Year’s Tax: If your tax payments equal or
exceed the tax on your 2022 tax return, no penalty
will be imposed. Your 2022 return must have
covered a period of 12 months.
Lines 10 and 11: How to Compute the
Penalty: If your tax payments (amount on line
7) do not equal or exceed the amount determined
under the exception on line 9, complete lines 10
and 11 to determine the amount of penalty. Enter
the amount and check the box on IA 1040, line 35.
To compute penalty, use the following formula:
Penalty (line 11) = daily % rate x number of
days (line 10) x underpayment (line 8)
The daily percentage rate is:
• 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.
•

45-008b (10/26/2023)