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Schedule

Annualized Income Schedule for the Underpayment of

IT-2210A

Indiana Individual Estimated Tax: Line-by-line Instructions

Revised 9/99

Section I - Farmers and Fishermen

Line G: Prior Year’s Tax Exception: If you filed a

Example:

If at least two-thirds of your income for 1998 or

• Kay moved out of Indiana on April 15, 1999,

1998 IT-40 as a full year resident, add lines 13

1999 was from farming or fishing, you have only

so she was a resident for 3.5 months.

and 14 (your income tax) and subtract the totals of

one payment due date for 1999 estimated tax -

• Her 1998 IT-40PNR line 1 income is

lines 21 and 22 (your credits). Enter the result here.

January 18, 2000.

$10,000.

If you filed a 1998 IT-40PNR as a full-year

• Her 1998 total exemptions are $2,500.

nonresident, add lines 11 and 12 from that return

To meet an exception to the underpayment

• The 1998 adjusted gross income tax rate is

and subtract the total of the lines 19 and 20 credits.

penalty for 1999, you may use option 1 or 2:

3.4% (.034). Her 1999 county tax rate is

Enter the result here. Note: See Caution below.

1% (for a 4.4% combined state and county

Pay all your estimated tax by January 18,

tax rate).

If you filed a 1998 IT-40PNR as a part-year

2000, and file your Form IT-40 by April

resident of Indiana, you must figure the tax for

17, 2000, OR

Steps 1 through 4 below figure the prior year's tax

that prior year on an annualized basis. You can

accomplish this by multiplying the IT-40PNR

exception for line G of Kay's IT-2210A.

File your Form IT-40 by March 1, 2000,

line 1 income by 12 months and dividing the

and pay all the tax due. You are not re-

result by the number of months you were an

quired to make an estimated tax payment

Indiana resident. Then figure the state tax and

if you choose this second option. If you

county tax (if applicable) by subtracting your

pay all the tax due, you will not be

1999 exemptions from the result and multiply

penalized for failure to pay estimated tax.

that total by the tax rate(s) from your 1999

Indiana individual income tax return. See the

Section II - Early Filers

example below. Note: See Caution below.

If you file your individual income tax return and

pay the tax due by February 1, 2000, you will not

be required to make a 4th installment estimated

Step 1 $ 10,000 (1999 Indiana income)

Step 3 $ 34,286

tax payment. For additional information see the

12 months

2,500 (1999 exemptions)

instructions for line 22.

$ 120,000 annualized income

$ 31,786

Section III - Required Annual Payments

Step 2 $ 120,000 annualized income

Step 4 $ 31,786

(1999 combined state

Section III will determine if you should have paid

3.5 months (1999 residency)

4.4% and county tax rate)

estimated taxes during the year and the minimum

$ 34,286

$ 1,399*

amount required.

*The $1,399 Step 4 total should be entered as an exception on line G of Kay's Schedule IT-2210A.

Line A: 1999 Tax: Enter the state adjusted gross

income tax and county income tax from your indi-

CAUTION: If your 1999 Indiana adjusted gross income (line 13 of Form IT-40 or line 11 of Form

vidual income tax return: add line 14 and line 15

IT-40PNR) was more than $150,000 ($75,000 for married individuals filing separately), you must

from the IT-40 or lines 12 and 13 from the IT-

enter 105% of last year's tax (instead of 100%) on line G.

40PNR and enter the total here.

Example: Chris and Kate's 1999 Indiana adjusted gross income from line 13 of Form IT-40 was

Line B: 1999 Credits: Enter the credits (except

$158,000. They would take the following steps to arrive at the exception amount for line G:

withholding and estimated tax payments) from

a) 1998 IT-40 total income tax (lines 13 plus line 14) ........... $ 6732

your tax return. Add line 22 (Unified Tax Credit

b) 1998 IT-40 credits (lines 21 and 22) ................................... - 1732

for the Elderly), line 23 (Earned Income Credit)

c) 1998 IT-40 total income tax due (before

and line 24 (Indiana Credits) from the IT-40 or

estimated tax and withholding credits) ................................ $ 5000

lines 20, 21 and 22 from the IT-40PNR and enter

d) Exception to the penalty percentage .................................... x 105%

the total here.

e) Amount for line G of Schedule IT-2210 ............................. $ 5,250

Line D: To determine 90% of your total expected

Note: If Chris and Kate's 1999 Indiana adjusted gross income had been less than $150,000,

tax, multiply line C by 90% (.90). Note: If at

they would have entered $5000 intead of $5,250 on Line G.

least 2/3 of your gross income is from farming or

fishing, multiply line D by 66 2/3% (.667).

ine H: Minimum Required Annual Payment: Enter the lesser of line D or line G. If the line G entry is

Line E: 1999 Withholding: Your 1999 state and

N/A, enter the amount from line D on this line. Continue to Section IV.

county income taxes withheld from your earnings

should equal the combined line 19 (Indiana State

Section IV - Annualized Method STOP! Complete lines 1 through 25 for each column, beginning

Tax Withheld) and line 20 (County Tax Withheld)

with Column A, before going to the next column. NOTE: Farmers/Fishermen should skip to the

amounts from the IT-40 or lines 17 and 18 from

instructions following line 27.

the IT-40PNR. Enter the total here.

Line 1: 1999 Indiana Adjusted Gross Income: You must use the amount from Form IT-40, line 7 or

Line F: Subtract line E from line C. If this amount

from Form IT-40PNR, line 3, and figure how much of this income was earned during each period. Note

is less than $400, you do not owe a penalty. Stop

that each column includes the income totals from all previous columns. See the example at the top of the

here and attach a copy of this schedule to your

next page.

individual income tax return.

Form It-2210a - Annualized Income Schedule For The Underpayment Of Indiana Individual Estimated Tax - Instructions

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