Iowa
2210 General Information and Examples for Tax Year 2005
The IA 2210 is used to
determine if an individual taxpayer paid income tax sufficiently throughout
the year. This form also calculates if any penalty is due.
Individual taxpayers
with W2 wages/income only are not subject to 2210 penalty
and do not complete the 2210.
Taxpayers who
do not have tax withheld from their paychecks must pay tax on
their income by making estimate tax payments on a quarterly basis.
Estimate Payments
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. You may benefit by using the IA
2210 Schedule A1 Annualized Income Installment Method if your income
varied during the year.
Calendar Year Taxpayers:
If you are not required to file until later in the year because of
a change in your income or exemptions, you may be required to pay in
fewer installments.
Estimate/Installment
Payment Periods and Due Dates
The chart below shows the
due date for installments and the maximum number of installments required
for each. More installments than required may be made in each period.
Period
Requirement First Met 
Installment
is Due 
Maximum
Number of
Installments Required 
Between
January 1 and April 1 
April
30 
4 
Between
April 2 and June 1 
June
30 
3 
Between
June 2 and September 1 
September
30 
2 
After
September 1 
January
31 
1 
NOTE: If any date shown
falls on a Saturday, Sunday or legal holiday, substitute the next
regular working day.
To find out if
you owe 2210 penalty, complete the IA 1040 through line 72 or
complete the IA 1040A, then complete the IA 2210 (45007). You will
need the amount of tax you paid Iowa in 2004 in addition to completing
the 2005 Iowa return.
Basic
IA 2210 Calculation Criteria
 Installment period
due dates are important. When a due date is missed, penalty applies
in most cases.
 Payments are first
carried back to any prior period with an underpayment.
 Any overpayments
are carried forward to the next period.
 Any credit carryforward
from prior year is applied to the April 30 installment.
 There may be more than
one penalty calculation for an installment period if more than one
payment was made in that period.
 Withholding is credited
equally in each installment period.
Learn
About the IA2210 Form
Before you continue, take
a look at this 2210. The blue and red comments
have been added for informational purposes. Do not use a copy of this
form. [The actual form is available by clicking this
link.]
The first 13 lines
of the 2210 determines how much tax the taxpayer should have
paid.
The second part
of the 2210 determines what the penalty, if any, is on the tax
that was not paid. Penalty is determined on a quarterly basis.
2210
Calculation Example 1
An individual
taxpayer did not pay any Iowa income tax throughout the year.
Results: The
taxpayer should have paid $1,000 each quarter, for a total of $4,000
for the entire year. This taxpayer owes 2210 penalty.
Take a look at this
taxpayer's 2210 to see how the penalty was calculated and totaled.
2210
Calculation Example 2
An individual taxpayer
made four estimate payments of Iowa income tax for a total of $4,000.
Although the full amount was eventually paid, some payments were not
timely.
Results: This
taxpayer owes 2210 penalty. Why? It matters when the payments
are made. If they are not timely, penalty is due.
First installment
period (due
April 30, 2005): No payment was made by 4/30/05; therefore, the taxpayer
has a $1,000 underpayment and will be assessed penalty.
 The first payment
of the year ($500) was made June 15, 2005. The second ($2,000) was
two weeks later on June 30, 2005.
 The underpayment is paid
by applying the $500 paid June 15 and $500 of the $2,000 paid June
30.
 The $500 paid June 15 has
a penalty for 46 days (May 1  June 15). The $500 paid June 30 has
penalty for 61 days (May 1  June 30).
Second installment period (due
June 30, 2005): No penalty is charged for this period.
 The taxpayer had $1,500
remaining from the $2,000 paid June 30 to apply to this period.
 Of the remaining $1,500,
$500 is carried forward to the next installment.
Third installment period (due
September 30, 2005): Penalty is charged for this period. $500 of the
June 30 payment carried over to this period; therefore, the taxpayer
still owes $500 for this period.
 The taxpayer's
third payment of $500 is made January 31, 2006, too late for the
third period. This amount is applied to the third period.
 Penalty on this $500 is
for 92 days for the October 1  December 31, 2005, quarter AND 31
days for January 1  31, 2006.
Fourth installment
period (due
January 31, 2006): Since the taxpayer's January 31 payment applied
to the third installment, penalty is due on $1,000.
 The $1,000 payment made
February 25, 2006, is applied to this period's underpayment.
 Penalty on the $1,000 is
for 25 days for February 1  February 25, 2006.
Take a look at this
taxpayer's 2210 to see how the penalty was calculated and totaled.
