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

Summary: This is an example of Form 2210 (2011), page 4, for Figure 4-C, Annualized Income Installment Method—Illustrated (Laura Maple). The completed line items are:

UnderPart 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) 1/1/11-3/31/11 field contains 6,099
  - (b) 1/1/11-5/31/11 field contains 11,095
  - (c) 1/1/11-8/31/11 field contains 19,517
  - (d) 1/1/11-12/31/11 field contains 39,823
- 3. Annualized income. Multiply line 1 by line 2
- - (a) 1/1/11-3/31/11 field contains 24,396
  - (b) 1/1/11-5/31/11 field contains 26,628
  - (c) 1/1/11-8/31/11 field contains 29,276
  - (d) 1/1/11-12/31/11 field contains 39,823
- 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) 1/1/11-3/31/11 field contains 2,250
  - (b) 1/1/11-5/31/11 field contains 3,750
  - (c) 1/1/11-8/31/11 field contains 6,000
  - (d) 1/1/11-12/31/11 field contains 9,000
- 6. Multiply line 4 by line 5
- - (a) 1/1/11-3/31/11 field contains 9,000
  - (b) 1/1/11-5/31/11 field contains 9,000
  - (c) 1/1/11-8/31/11 field contains 9,000
  - (d) 1/1/11-12/31/11 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) 1/1/11-3/31/11 field contains 8,500
  - (b) 1/1/11-5/31/11 field contains 8,500
  - (c) 1/1/11-8/31/11 field contains 8,500
  - (d) 1/1/11-12/31/11 field contains 8,500
- 8. Enter the larger of line 6 or line 7
- - (a) 1/1/11-3/31/11 field contains 9,000
  - (b) 1/1/11-5/31/11 field contains 9,000
  - (c) 1/1/11-8/31/11 field contains 9,000
  - (d) 1/1/11-12/31/11 field contains 9,000
- 9. Subtract line 8 from line 3
- - (a) 1/1/11-3/31/11 field contains 15,396
  - (b) 1/1/11-5/31/11 field contains 17,628
  - (c) 1/1/11-8/31/11 field contains 20,726
  - (d) 1/1/11-12/31/11 field contains 30,823
- 10. In each column, multiply $3,700 by the total number of exemptions claimed (Estates and trusts and Form 1040N.R. or 1040N.R.-E.Z. filers, see instructions.)
- - (a) 1/1/11-3/31/11 field contains 11,100
  - (b) 1/1/11-5/31/11 field contains 11,100
  - (c) 1/1/11-8/31/11 field contains 11,100
  - (d) 1/1/11-12/31/11 field contains 11,100
- 11. Subtract line 10 from line 9. If zero or less, enter 0
- - (a) 1/1/11-3/31/11 field contains 4,296
  - (b) 1/1/11-5/31/11 field contains 6,528
  - (c) 1/1/11-8/31/11 field contains 9,176
  - (d) 1/1/11-12/31/11 field contains 19,723
- 12. Figure your tax on the amount on line 11 (see instructions)
- - (a) 1/1/11-3/31/11 field contains 428
  - (b) 1/1/11-5/31/11 field contains 653
  - (c) 1/1/11-8/31/11 field contains 918
  - (d) 1/1/11-12/31/11 field contains 2,351
- 13. Self-employment tax from line 34 (complete Part II below)
- - (b) 1/1/11-5/31/11 field contains 294
  - (c) 1/1/11-8/31/11 field contains 645
  - (d) 1/1/11-12/31/11 field contains 2,039
- 15. Total tax. Add lines 12, 13, and 14
- - (a) 1/1/11-3/31/11 field contains 428
  - (b) 1/1/11-5/31/11 field contains 947
  - (c) 1/1/11-8/31/11 field contains 1,563
  - (d) 1/1/11-12/31/11 field contains 4,390
- 16. For each period, enter the same type of credits as allowed on Form 2210, Part I, lines 1 and 3 (see instructions)
- - (a) 1/1/11-3/31/11field contains EIC 2,734
  - (b) 1/1/11-5/31/11field contains EIC 2,983
  - (c) 1/1/11-8/31/11field contains EIC 2,335
  - (d) 1/1/11-12/31/11 field contains EIC 113
- 17. Subtract line 16 from line 15. If zero or less, enter 0
- - (a) 1/1/11-3/31/11 field contains 0
  - (b) 1/1/11-5/31/11 field contains 0
  - (c) 1/1/11-8/31/11 field contains 0
  - (d) 1/1/11-12/31/11 field contains 4,817
- 18. Applicable percentage
- - (a) 1/1/11-3/31/11 field contains 22.5%
  - (b) 1/1/11-5/31/11 field contains 45%
  - (c) 1/1/11-8/31/11 field contains 67.5%
  - (d) 1/1/11-12/31/11 field contains 90%
- 19. Multiply line 17 by line 18. Complete lines 20–25 of one column before going to line 20 of the next column.
- - (a) 1/1/11-3/31/11 field contains 0
  - (b) 1/1/11-5/31/11 field contains 0
  - (c) 1/1/11-8/31/11 field contains 0
  - (d) 1/1/11-12/31/11 field contains 4,362
- 20. Enter the total of the amounts in all previous columns of line 25
- 21. Subtract line 20 from line 19. If zero or less, enter 0
- - (a) 1/1/11-3/31/11 field contains 0
  - (b) 1/1/11-5/31/11 field contains 0
  - (c) 1/1/11-8/31/11 field contains 0
  - (d) 1/1/11-12/31/11 field contains 4,362
- 22. Enter 25% (.25) of line 9 on page 1 of Form 2210 in each column
- - (a) 1/1/11-3/31/11 field contains 1,025
  - (b) 1/1/11-5/31/11 field contains 1,025
  - (c) 1/1/11-8/31/11 field contains 1,025
  - (d) 1/1/11-12/31/11 field contains 1,025
- 23. Subtract line 25 of the previous column from line 24 of that column
- - (b) 1/1/11-5/31/11 field contains 1,025
  - (c) 1/1/11-8/31/11 field contains 2,050
  - (d) 1/1/11-12/31/11 field contains 3,075
- 24. Add lines 22 and 23
- - (a) 1/1/11-3/31/11 field contains 1,025
  - (b) 1/1/11-5/31/11 field contains 2,050
  - (c) 1/1/11-8/31/11 field contains 3,075
  - (d) 1/1/11-12/31/11 field contains 4,100
- 25. Enter the smaller of line 21 or line 24 here and on Form 2210, line 18
- - (a) 1/1/11-3/31/11 field contains 0
  - (b) 1/1/11-5/31/11 field contains 0
  - (c) 1/1/11-8/31/11 field contains 0
  - (d) 1/1/11-12/31/11 field contains 4,100
UnderPart II: Annualized Self-Employment Tax:
- 26. Net earnings from self-employment for the period (see instructions)
- - (b) 1/1/11-5/31/11 field contains 944
  - (c) 1/1/11-8/31/11 field contains 3,232
  - (d) 1/1/11-12/31/11 field contains 15,330
- 27. Prorated social security tax limit
  - (a) 1/1/11-3/31/11 field contains 26,700
  - (b) 1/1/11-5/31/11 field contains 44,500
  - (c) 1/1/11-8/31/11 field contains 71,200
  - (d) 1/1/11-12/31/11 field contains 106,800
- 28. Enter actual wages for the period subject to social security tax or the 4.2% portion of the 5.65% railroad retirement (tier 1) tax
- - (b) 1/1/11-5/31/11 field contains 10,165
  - (c) 1/1/11-8/31/11 field contains 16,264
  - (d) 1/1/11-12/31/11 field contains 24,396
- 29. Subtract line 28 from line 27. If zero or less, enter 0
- - (b) 1/1/11-5/31/11 field contains 34,335
  - (c) 1/1/11-8/31/11 field contains 54,936
  - (d) 1/1/11-12/31/11 field contains 82,404
- 30. Annualized Amounts
  - (a) field contains 0.416
  - (b) field contains 0.2496
  - (c) field contains 0.156
  - (d) field contains 0.104
- 31. Multiply line 30 by the smaller of line 26 or line 29
- - (b) 1/1/11-5/31/11 field contains 230
  - (c) 1/1/11-8/31/11 field contains 504
  - (d) 1/1/11-12/31/11 field contains 1,594
- 32. Annualized Amounts
  - (a) field contains 0.116
  - (b) field contains 0.0696
  - (c) field contains 0.0435
  - (d) field contains 0.029
- 33. Multiply line 26 by line 32
- - (b) 1/1/11-5/31/11 field contains 64
  - (c) 1/1/11-8/31/11 field contains 141
  - (d) 1/1/11-12/31/11 field contains 445
- 34. Add lines 31 and 33. Enter the result here and on line 13 above
- - (b) 1/1/11-5/31/11 field contains 294
  - (c) 1/1/11-8/31/11 field contains 645
  - (d) 1/1/11-12/31/11 field contains 2,039

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