New Jersey Underpayment of Estimated Tax by Individuals and Individuals

Underpayment of Estimated Tax by Individuals and Individuals
2023 NJ-2210 Underpayment of Estimated Tax by Individuals, Estates, or Trusts
NJ-2210
2023

Underpayment of Estimated Tax
by Individuals, Estates, or Trusts
Fill in the oval at line 52, Form NJ-1040, and enclose this form with your return.

Name(s) as shown on Form NJ-1040

Part I	

Social Security Number

Figuring Your Underpayment

No interest will be assessed on an underpayment of estimated tax resulting from the provisions of P.L. 2023, c.96, as long as you pay
all additional estimated tax by April 15, 2024.
	 1.	2023 Tax (line 50, Form NJ-1040)............................................................................................

1.

	 2.	Enter the total of lines 55, 56, 58, 59, 60, 61, 62, 63, 64, and 65, Form NJ-1040..................

2.

	 3.	Subtract line 2 from line 1 (If less than $400, do not complete the rest of this form)..............

3.

	4a.	Multiply the amount on line 1 by .80 (80%) (Two-thirds for qualified farmers).........................

4a.

	4b.	Enter 2022 tax (From Form NJ-1040, line 50).......................................................................

4b.

Payment Due Dates
(A)
April 18, 2023

	 5.	Use the lesser amount from either line 4a or 4b and divide by
four. Enter the result in each column.........................................

5.

	 6.	Estimated tax paid and tax withheld per period (see instr.).
If each column on line 6 is greater than the corresponding
column on line 5, do not complete the rest of this form.............

6.

	 7.	Enter the overpayment (line 13) from the previous column.
(Complete lines 7 through 13 for one column before completing the next column.).................................................................

7.

	 8.	Add line 6 and line 7..................................................................

8.

	 9.	Enter the total underpayment (add line 11 and line 12) from
the previous column..................................................................

9.

	10.	Subtract line 9 from line 8. If zero or less, enter zero................

10.

	11.	Remaining underpayment from previous period. If line 10 is
zero, subtract line 8 from line 9. Otherwise enter zero..............

11.

	12.	 Underpayment (If line 5 is greater than line 10, subtract line
10 from line 5)...........................................................................

12.

	13.	 Overpayment (If line 10 is greater than line 5, subtract line 5
from line 10)..............................................................................

13.

Part II	

(B)
June 15, 2023

(C)
Sept 15, 2023

(D)
Jan 16, 2024

Exceptions

(See instructions. Complete worksheets for exceptions 2, 3, and 4 and enclose calculations for each exception claimed.)
If you meet exception 1 at line 15, do not file this form. These amounts will be verified by the Division of Taxation.
	14.	Total amount paid and withheld from January 1 through
payment due date shown. (Do not include withholdings after
December 31, 2023.) (See instructions)....................................

14.

	15.	Exception 1 – Enter 2022 tax (line 50)......

15.

$

	16.	Exception 2 – Tax on 2022 gross income using 2023
exemptions and tax rates..........................................................

16.

	17.	Exception 3 – Tax on annualized 2023 income.........................

17.

	18.	Exception 4 – Tax on 2023 income over 3, 5, and 8-month
	periods......................................................................................

April 18, 2023

June 15, 2023

Sept 15, 2023

Jan 16, 2024

25% of 2022 Tax

50% of 2022 Tax

75% of 2022 Tax

100% of 2022 Tax

25% of Tax

50% of Tax

75% of Tax

100% of Tax

20% of Tax

40% of Tax

60% of Tax

90% of Tax

90% of Tax

90% of Tax

18.

If the amount of any exception is equal to or less than the corresponding amount at line 14, interest will not be charged for that period
	19. Total Interest (Include this amount on line 52, Form NJ-1040)...............................................

$

NJ-2210	

Exception II	

2023

Worksheets

Tax on 2022 gross income using 2023 exemptions and tax rates

1.	 Enter 2022 NJ Gross Income (line 29, 2022 NJ-1040).....................................................................

1.

2.	 Enter 2023 Total Exemptions (line 30, 2023 NJ-1040)......................................................................

2.

3.	 Subtract line 2 from line 1..................................................................................................................

3.

4.	 Calculate Tax on line 3 (2023 tax rates)............................................................................................

4.

5.	 Enter Credit for Income Taxes Paid to Other Jurisdictions (line 44, 2023 NJ-1040).........................

5.

6.	 Subtract line 5 from line 4. Enter the applicable percentage of this amount on line 16,
Part II of this form..............................................................................................................................

6.

Exception III	
	
	
	

Tax on 2023 Annualized Income (attach calculations)

Estates and trusts, do not use the period ending dates shown, instead use the following
ending dates: 2/28/23, 4/30/23, and 7/31/23. Also, estates and trusts cannot use the
annualization amounts shown on line 2 and must use 6, 3, and 1.7143, respectively.

1.	 Enter the portion of NJ Gross Income (line 29, NJ-1040) that is applicable
to each period shown.....................................................................................

1.

2.	 Annualization amounts...................................................................................

2.

3.	 Annualized Income (Multiply line 1 by line 2).................................................

3.

4.	 Enter Total Exemptions (line 30, NJ-1040).....................................................

4.

5.	 Subtract line 4 from line 3...............................................................................

5.

6.	 Calculate tax on line 5....................................................................................

6.

7.	 Enter the portion of the Credit for Income Taxes Paid to Other Jurisdictions
(line 44, NJ-1040) that is applicable to each period.......................................

7.

8.	 Subtract line 7 from line 6. Enter the applicable percentage of this amount
on line 17, Part II of this form.........................................................................

8.

Exception IV	

1/1/23 – 3/31/23

1/1/23 – 5/31/23

1/1/23 – 8/31/23

4

2.4

1.5

Tax on Actual 2023 Taxable Income over 3, 5, and 8-month periods (attach calculations)
1/1/23 – 3/31/23

1.	 Enter the actual amount of NJ Taxable Income (line 42, NJ-1040) that is
applicable to each period shown.....................................................................

1.

2.	 Calculate tax on line 1.....................................................................................

2.

3.	 Enter the portion of the Credit for Income Taxes Paid to Other Jurisdictions
(line 44, NJ-1040) that is applicable to each period shown.............................

3.

4.	 Subtract line 3 from line 2. Enter 90% of this amount on line 18, Part II of
this form...........................................................................................................

4.

1/1/23 – 5/31/23

1/1/23 – 8/31/23

New Jersey Gross Income Tax
Instructions for Form NJ-2210
Underpayment of Estimated Tax by Individuals, Estates, or Trusts
2023

Use Form NJ-2210 to determine if you are subject to interest on the underpayment of estimated tax. Estates and trusts are subject to
interest on underpayment of estimated tax and may need to complete Form NJ-2210, except estates and trusts that meet the two-year
limitation and other criteria of federal Internal Revenue Code section 6654(1)(2). Complete Part I, Figuring your Underpayment, to determine if you have not paid enough estimated tax during any of the payment periods. If you have not, complete Part II, Exceptions, to
determine if an exception applies to any of the payment periods. If no exception applies, use the worksheet on the next page to calculate
the interest for that period.

In General

You may owe interest if you did not make estimated payments,
including withholdings (see line 6), equal to at least 80% of your
2023 tax liability (line 50, Form NJ-1040) or 100% of your 2022
tax liability, provided your 2022 New Jersey Income Tax return
covered a full 12-month period. If an underpayment does exist
for any column in Part I, you should complete Part II, Exceptions, and the appropriate worksheet on page 2, NJ-2210 to determine if any of the exceptions on Part II may apply. You must
complete the appropriate worksheet for exceptions 2, 3, and 4
and attach all calculations for each of the exceptions claimed.
Note: No interest will be assessed on an underpayment of
estimated tax resulting from the provisions of P.L. 2023, c.96,
provided all additional estimated tax is paid by April 15, 2024.

Specific Instructions
Part I

Line 3 – If line 3 is $400 or more, complete lines 4 through 13.

equal to or more than the tax calculated under any of the four
exceptions for the same payment period.
Line 14 – Based on the amounts indicated on line 6, Part I,
enter the total amount of all estimated tax payments and taxes
withheld by each of the due dates indicated on Part II.
Exceptions 1, 2, 3, and 4 – You must complete the appropriate
worksheet for exemptions 2, 3, and 4 and attach all calculations
for each of the exceptions claimed. If you meet exception 1 at
line 15 do not file this form. These amounts will be automatically verified by the Division of Taxation.
Exception 1 – Enter your prior year tax liability in the space
provided at line 15. Exception 1 only applies if your prior year
tax return covered a full 12-month period and your current tax
year payments (line 14) are at least equal to your prior year tax
liability. Your prior year tax liability is zero if a return was not required to be filed. Enter the applicable percentage of your prior
year tax liability in each column at line 15, as indicated.

Line 6 – For the purpose of determining your underpayment
of estimated tax, tax withheld includes the amount of New
Jersey Tax Withheld (line 55, Form NJ-1040), Property Tax
Credit (line 56, Form NJ-1040), New Jersey Earned Income
Tax Credit (line 58, Form NJ-1040), Excess NJ UI/WF/SWF
Withheld (line 59, Form NJ-1040), Excess NJ Disability Insurance Withheld (line 60, NJ-1040), Excess NJ Family Leave
Insurance Withheld (line 61, NJ-1040), Wounded Warrior
Caregivers Credit (line 62, NJ-1040), Pass-Through Business
Alternative Income Tax Credit (line 63, NJ-1040), Child and
Dependent Care Credit (line 64, NJ-1040), and New Jersey
Child Tax Credit (line 65, NJ-1040). The total amount of tax
withheld is considered to have been paid evenly (one-fourth of
total amount) on each payment due date, unless you can show
otherwise. Include this amount with the amount of any estimated tax payments on each of the columns on Part I. The total
amount of credit, if any, from your prior year tax return should
be included in the amount of your payment in column B. If each
column on line 6 is greater than the corresponding column on
line 5, do not complete the rest of this form.

Exception 2 – Exception 2 is calculated by subtracting the total
amount of your current tax year exemptions from your prior
year gross income. Tax is calculated using the current year
tax rates. Subtract your Credit for Income Taxes Paid to Other
Jurisdictions, if any. Enter the applicable percentage of line 6 of
the worksheet in each column at line 16, as indicated. Exception 2 only applies if your current year tax payments (line 14)
are at least equal to the amounts indicated at line 16.

Line 7 – Complete lines 7 through 13 for one column before
completing the next column.

Exception 4 – Exception 4 is calculated using the tax on the
actual amount of NJ Taxable Income that is applicable to each
period shown. Subtract your Credit for Income Taxes Paid to
Other Jurisdictions, if any. Enter 90% of each amount from
line 4 of the worksheet in the corresponding column at line 18.
Exception 4 only applies if your current year tax payments
(line 14) are at least equal to the amounts indicated at line 18.

Line 12 – If line 12 is zero for all payment periods, you are
not subject to the interest and therefore do not have to file
Form NJ-2210. If you have an underpayment in any column on
line 12, complete Part II.

Part II

You will not have to pay interest if (1) you have paid your 2023
tax payments (line 14) on time; and (2) the amount on line 14 is

Exception 3 – Exception 3 is calculated by multiplying the
actual portion of NJ Gross Income that is applicable to each
period shown, by the annualization amounts at line 2 of the
worksheet. Subtract the total amount of exemptions from your
Annualized Income on line 3. Calculate tax on this amount.
Subtract your Credit for Income Taxes Paid to Other Jurisdictions, if any. Enter the applicable percentage of each amount
from line 8 of the worksheet in the corresponding column at
line 17 as indicated. Exception 3 only applies if your current
year tax payments (line 14) are at least equal to the amounts
indicated at line 17.

Calculating the Interest
Use the table in Option 1 to calculate interest on the amount of the underpayment from page 1, NJ-2210. If your
estimated tax payments for Tax Year 2023 were not paid timely, interest must be calculated based on the Interest Rate
Schedule in Option 2.

OPTION 1
Q
U
A
R
T
E
R

PERIOD

A

B

C

Amount Due

Balance Due
Previous Qtr.

(Col. A + B)

(Line 5, NJ-2210)

(Col. E)

Total Due

D

E

F

Total Paid

Balance
(Col. C – D)

Multiplier

(Line 6, NJ-2210)

1.

4/15 – 6/15

.017

2.

6/16 – 9/15

.028

3.

9/16 – 1/15

.038

4.

1/16 – 4/15

.029

G
Interest

(Col. E x F)

Total Interest

Column A	

Enter the amount due per quarter (line 5, NJ-2210).

Column B	

Enter the balance due (column E) from the previous quarter.

Column C	

Enter the total of column A plus column B.
If column B is negative, subtract column B from column A.

Column D	

Enter the total estimated tax paid and withheld (line 6, NJ-2210).

Column E	

Subtract column D from column C.

Column F	

The multiplier is based on the interest rates in effect during each quarter.

Column G	

Multiply column E by the multiplier in column F. If column E is negative, enter zero in column G.

TOTAL INTEREST	 Add the interest for each quarter and enter this amount in the block marked Total Interest on
line 19, NJ-2210 and on line 52, NJ-1040.

OPTION 2
Calculate the interest on the amount of the underpayment on line 12 from the date the underpayment was incurred to
the date the underpayment was satisfied or the original due date of the final tax return (Form NJ-1040), whichever is
earlier. Interest is assessed at the annual rate of 3% above the average predominant prime rate and is imposed each
month or fraction thereof the underpayment exists. The interest rate will be reviewed quarterly and will only change if
there has been a cumulative change of more than 1% since it was last set.
INTEREST RATE SCHEDULE
PERIOD

INTEREST RATE

4/16/23 – 6/15/23
6/16/23 – 1/15/24
1/16/24 – 4/15/24

10.00%
11.25%
11.50%