Figure 4-C, Annualized Income Installment Method—Illustrated (Laura Maple)

Summary: This is an example of Form 2210 (2008), page 4, for Figure 4-C, Annualized Income Installment Method—Illustrated (Laura Maple). The completed line items are:

Under Part I: Annualized Income Installments:
- 1. Enter your adjusted gross income for each period (see instructions). (Estates and trusts, enter your taxable income without your exemption for each period.)
- - (a) 1/1/08-3/31/08 field contains 3,750
  - (b) 1/1/08-5/31/08 field contains 9,596
  - (c) 1/1/08-8/31/08 field contains 17,993
  - (d) 1/1/08-12/31/08 field contains 30,427
- 3. Annualized income. Multiply line 1 by line 2
- - (a) 1/1/08-3/31/08 field contains 15,000
  - (b) 1/1/08-5/31/08 field contains 23,030
  - (c) 1/1/08-8/31/08 field contains 26,990
  - (d) 1/1/08-12/31/08 field contains 30,427
- 4. If you itemize, enter itemized deductions for the period shown in each column. All others, enter 0 and skip to line 7. Exception: Estates and trusts, skip to line 9 and enter amount from line 3
- - (a) 1/1/08-3/31/08 field contains 2,250
  - (b) 1/1/08-5/31/08 field contains 3,750
  - (c) 1/1/08-8/31/08 field contains 6,000
  - (d) 1/1/08-12/31/08 field contains 9,000
- 6. Multiply line 4 by line 5 (see instructions if line 3 is more than $79,975)
- - (a) 1/1/08-3/31/08 field contains 9,000
  - (b) 1/1/08-5/31/08 field contains 9,000
  - (c) 1/1/08-8/31/08 field contains 9,000
  - (d) 1/1/08-12/31/08 field contains 9,000
- 7. In each column, enter the full amount of your standard deduction from Form 1040, line 40, or Form 1040A, line 24 (Form 1040N.R. or 1040N.R.-E.Z. filers, enter 0. Exception: Indian students and business apprentices, see instructions.)
- - (a) 1/1/08-3/31/08 field contains 8,000
  - (b) 1/1/08-5/31/08 field contains 8,000
  - (c) 1/1/08-8/31/08 field contains 8,000
  - (d) 1/1/08-12/31/08 field contains 8,000
- 8. Enter the larger of line 6 or line 7
- - (a) 1/1/08-3/31/08 field contains 9,000
  - (b) 1/1/08-5/31/08 field contains 9,000
  - (c) 1/1/08-8/31/08 field contains 9,000
  - (d) 1/1/08-12/31/08 field contains 9,000
- 9. Subtract line 8 from line 3
- - (a) 1/1/08-3/31/08 field contains 6,000
  - (b) 1/1/08-5/31/08 field contains 14,030
  - (c) 1/1/08-8/31/08 field contains 17,990
  - (d) 1/1/08-12/31/08 field contains 21,427
- 10. In each column, multiply $3,500 by the total number of exemptions claimed (see instructions if line 3 is more than $119,975). (Estates and trusts and Form 1040N.R. or 1040N.R.-E.Z. filers, see instructions.)
- - (a) 1/1/08-3/31/08 field contains 7,000
  - (b) 1/1/08-5/31/08 field contains 7,000
  - (c) 1/1/08-8/31/08 field contains 7,000
  - (d) 1/1/08-12/31/08 field contains 7,000
- 11. Subtract line 10 from line 9. If zero or less, enter 0
- - (a) 1/1/08-3/31/08 field contains 0
  - (b) 1/1/08-5/31/08 field contains 7,030
  - (c) 1/1/08-8/31/08 field contains 10,990
  - (d) 1/1/08-12/31/08 field contains 14,427
- 12. Figure your tax on the amount on line 11 (see instructions)
- - (b) 1/1/08-5/31/08 field contains 703
  - (c) 1/1/08-8/31/08 field contains 1,098
  - (d) 1/1/08-12/31/08 field contains 1,591
- 13. Self-employment tax from line 34 (complete Part II below)
- - (b) 1/1/08-5/31/08 field contains 1,221
  - (c) 1/1/08-8/31/08 field contains 1,822
  - (d) 1/1/08-12/31/08 field contains 2,346
- 15. Total tax. Add lines 12, 13, and 14
- - (a) 1/1/08-3/31/08 field contains 0
  - (b) 1/1/08-5/31/08 field contains 1,924
  - (c) 1/1/08-8/31/08 field contains 2,920
  - (d) 1/1/08-12/31/08 field contains 3,937
- 16. For each period, enter the same type of credits as allowed on Form 2210, Part I, lines 1 and 3 (see instructions)
- - (a) 1/1/08-3/31/08field contains 2,917
  - (b) 1/1/08-5/31/08field contains 1,753
  - (c) 1/1/08-8/31/08field contains 1,122
  - (d) 1/1/08-12/31/08 field contains 571
- 17. Subtract line 16 from line 15. If zero or less, enter 0
- - (a) 1/1/08-3/31/08 field contains 0
  - (b) 1/1/08-5/31/08 field contains 171
  - (c) 1/1/08-8/31/08 field contains 1,798
  - (d) 1/1/08-12/31/08 field contains 3,366
- 19. Multiply line 17 by line 18. Complete lines 20–25 of one column before going to line 20 of the next column.
- - (a) 1/1/08-3/31/08 field contains 0
  - (b) 1/1/08-5/31/08 field contains 77
  - (c) 1/1/08-8/31/08 field contains 1,214
  - (d) 1/1/08-12/31/08 field contains 3,029
- 20. Enter the total of the amounts in all previous columns of line 25
- - (b) 1/1/08-5/31/08 field contains 0
  - (c) 1/1/08-8/31/08 field contains 77
  - (d) 1/1/08-12/31/08 field contains 1,214
- 21. Subtract line 20 from line 19. If zero or less, enter 0
- - (a) 1/1/08-3/31/08 field contains 0
  - (b) 1/1/08-5/31/08 field contains 77
  - (c) 1/1/08-8/31/08 field contains 1,137
  - (d) 1/1/08-12/31/08 field contains 1,815
- 22. Enter 25% (.25) of line 9 on page 1 of Form 2210 in each column
- - (a) 1/1/08-3/31/08 field contains 757
  - (b) 1/1/08-5/31/08 field contains 757
  - (c) 1/1/08-8/31/08 field contains 757
  - (d) 1/1/08-12/31/08 field contains 757
- 23. Subtract line 25 of the previous column from line 24 of that column
- - (b) 1/1/08-5/31/08 field contains 757
  - (c) 1/1/08-8/31/08 field contains 1,437
  - (d) 1/1/08-12/31/08 field contains 1,057
- 24. Add lines 22 and 23
- - (a) 1/1/08-3/31/08 field contains 757
  - (b) 1/1/08-5/31/08 field contains 1,514
  - (c) 1/1/08-8/31/08 field contains 2,194
  - (d) 1/1/08-12/31/08 field contains 1,814
- 25. Enter the smaller of line 21 or line 24 here and on Form 2210, line 18
- - (a) 1/1/08-3/31/08 field contains 0
  - (b) 1/1/08-5/31/08 field contains 77
  - (c) 1/1/08-8/31/08 field contains 1,137
  - (d) 1/1/08-12/31/08 field contains 1,814
Under Part II: Annualized Self-Employment Tax:
- 26. Net earnings from self-employment for the period (see instructions)
- - (b) 1/1/08-5/31/08 field contains 3,325
  - (c) 1/1/08-8/31/08 field contains 7,942
  - (d) 1/1/08-12/31/08 field contains 15,330
- 28. Enter actual wages for the period subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax
- - (b) 1/1/08-5/31/08 field contains 6,250
  - (c) 1/1/08-8/31/08 field contains 10,000
  - (d) 1/1/08-12/31/08 field contains 15,000
- 29. Subtract line 28 from line 27. If zero or less, enter 0
- - (b) 1/1/08-5/31/08 field contains 36,250
  - (c) 1/1/08-8/31/08 field contains 58,000
  - (d) 1/1/08-12/31/08 field contains 87,000
- 31. Multiply line 30 by the smaller of line 26 or line 29
- - (b) 1/1/08-5/31/08 field contains 990
  - (c) 1/1/08-8/31/08 field contains 1,477
  - (d) 1/1/08-12/31/08 field contains 1,901
- 33. Multiply line 26 by line 32
- - (b) 1/1/08-5/31/08 field contains 231
  - (c) 1/1/08-8/31/08 field contains 345
  - (d) 1/1/08-12/31/08 field contains 445
- 34. Add lines 31 and 33. Enter the result here and on line 13 above
- - (b) 1/1/08-5/31/08 field contains 1,221
  - (c) 1/1/08-8/31/08 field contains 1,822
  - (d) 1/1/08-12/31/08 field contains 2,346

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