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Current Year Tax Map
Publication 505
taxmap/pubs/p505-026.htm#en_us_publink1000194877

Waiver of Penalty(p57)

rule
The IRS can waive the penalty for underpayment if either of the following applies.
  1. You did not make a payment because of a casualty, disaster, or other unusual circumstance and it would be inequitable to impose the penalty.
  2. You retired (after reaching age 62) or became disabled in 2011 or 2012 and both the following requirements are met.
    1. You had a reasonable cause for not making the payment.
    2. Your underpayment was not due to willful neglect.
taxmap/pubs/p505-026.htm#en_us_publink1000194878

How to request a waiver.(p57)

rule
To request a waiver, see the Instructions for Form 2210.
taxmap/pubs/p505-026.htm#en_us_publink1000194879
Farmers and fishermen.(p57)
To request a waiver, see the Instructions for Form 2210-F.
taxmap/pubs/p505-026.htm#en_us_publink1000194880

Federally declared disaster.(p57)

rule
Certain estimated tax payment deadlines for taxpayers who reside or have a business in a federally declared disaster area are postponed for a period during and after the disaster. During the processing of your tax return, the IRS automatically identifies taxpayers located in a covered disaster area (by county or parish) and applies the appropriate penalty relief. Do not file Form 2210 or 2210-F if your underpayment was due to a federally declared disaster. If you still owe a penalty after the automatic waiver is applied, we will send you a bill.
Individuals, estates, and trusts not in a covered disaster area but whose books, records, or tax professionals' offices are in a covered area are also entitled to relief. Also eligible are relief workers affiliated with a recognized government or charitable organization assisting in the relief activities in a covered disaster area. If you meet either of these eligibility requirements, you must call the IRS disaster hotline at 1-866-562-5227 and identify yourself as eligible for this relief.
Details on the applicable disaster postponement period can be found at IRS.gov. Enter Tax Relief in Disaster Situations. Select the federally declared disaster that affected you.
taxmap/pubs/p505-026.htm#en_us_publink1000194881

Worksheet 4-1. 2012 Form 2210, Schedule AI—Line 12
Qualified Dividends and Capital Gain Tax Worksheet

Note. To figure the annualized entries for lines 2, 3, and 5 below, multiply the expected amount for the period by the
 annualization amount on line 2 of Schedule AI for the same period.
         
1.Enter line 11 of your Schedule AI, or line 3 from Worksheet 4-21.  
2.Enter your annualized qualified dividends for the period2.    
3.Are you filing Schedule D?      
 Yes. Enter the smaller of your annualized amount from line 15 or line 16 of Schedule D. If either line 15 or line 16 is blank or a loss, enter -0-. Right brace 3.    
 No. Enter your annualized capital gain distributions from Form 1040, line 13       
4.Add lines 2 and 3 4.    
5.If you are claiming investment interest expense on Form 4952, enter your annualized amount from line 4g of that form. Otherwise, enter -0-  5.    
6.Subtract line 5 from line 4. If zero or less, enter -0-6.  
7.Subtract line 6 from line 1. If zero or less, enter -0-7.  
8.Enter:
$35,350 if single or married filing separately,
$70,700 if married filing jointly or qualifying widow(er),
$47,350 if head of household.
Right brace 8.  
9.Enter the smaller of line 1 or line 8 9.  
10.Enter the smaller of line 7 or line 9 10.  
11.Subtract line 10 from line 9. This amount is taxed at 0%11.  
12.Enter the smaller of line 1 or line 6 12.  
13.Enter the amount from line 1113.  
14.Subtract line 13 from line 1214.  
15.Multiply line 14 by 15% (.15)15.
16.Figure the tax on the amount on line 7. If the amount on line 7 is less than $100,000, use the Tax Table in the 2012 Form 1040 instructions to figure this tax. If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2012 Form 1040 instructions 16.
17.Add lines 15 and 1617.
18.Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table in the 2012 Form 1040 instructions to figure this tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet in the 2012 Form 1040 instructions 18.
19. Tax on all taxable income. Enter the smaller of line 17 or line 18. Also enter this amount on line 12 of Schedule AI in the appropriate column. However, if you are using this worksheet to figure the tax on the amount on line 3 of Worksheet 4-2, enter the amount from line 19 on Worksheet 4-2, line 4 19.
taxmap/pubs/p505-026.htm#en_us_publink1000194882

Worksheet 4-2. 2012 Form 2210, Schedule AI—Line 12
Foreign Earned Income Tax Worksheet

Before you begin: If Schedule AI, line 11, is zero for the period, do not complete this worksheet.   
    
1.Enter the amount from line 11 of Schedule AI for the period1.
2.Enter the annualized amount* of foreign earned income and housing amount excluded or deducted (from
Form 2555, lines 45 and 50, or Form 2555-EZ, line 18) in figuring the amount entered for the period on line 1
of Schedule AI
2.
3.Add lines 1 and 23.
4. Tax on the amount on line 3. Use the Tax Table, Tax Computation Worksheet, Form 8615,** Qualified Dividends and Capital Gain Worksheet,*** or Schedule D Tax Worksheet,*** whichever applies. See the 2012 Instructions for Form 1040, line 44, to find out which tax computation method to use. (Note. You do not have to use the same method for each period on Schedule AI.) 4.
5. Tax on the amount on line 2. If the amount on line 2 is less than $100,000, use the Tax Table in the 2012 Form 1040 instructions to figure this tax. If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2012 Form 1040 instructions 5.
6.Subtract line 5 from line 4. Enter the result here and on line 12 of Schedule AI. If zero or less,
enter -0-
6.
    
 * To figure the annualized amount for line 2, multiply the exclusion or deduction for the period by the annualization amount on line 2 of Schedule AI for the same period.  
 ** If you use Form 8615 to figure the tax on line 4 above, enter the amount from line 3 above on line 4 of Form 8615. If the child's parent files Form 2555 or 2555-EZ, enter the amounts from lines 3 and 4 of the parent's Foreign Earned Income Tax Worksheet on lines 6 and 10, respectively, of Form 8615. Complete the rest of Form 8615 according to its instructions. Then complete lines 5 and 6 above.  
 *** Enter the amount from line 3 above on line 1 of the Qualified Dividends and Capital Gain Tax Worksheet (or Worksheet 4-1 in this chapter) or the Schedule D Tax Worksheet, whichever worksheet you use to figure the tax on line 4 above. Complete that worksheet through line 6 (line 10 if you use the Schedule D Tax Worksheet). Next, determine if you have a capital gain excess.  
  Figuring capital gain excess. To find out if you have a capital gain excess for the appropriate period, subtract line 11 of Schedule AI from line 6 of Worksheet 4-1 or your Qualified Dividends and Capital Gain Tax Worksheet (line 10 of your Schedule D Tax Worksheet). If the result is more than zero, that amount is your capital gain excess.  
 No capital gain excess. If you do not have a capital gain excess, complete the rest of Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or the Schedule D Tax Worksheet according to the worksheet's instructions. Then complete lines 5 and 6 above.  
 Capital gain excess. If you have a capital gain excess, complete a second Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or Schedule D Tax Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Then complete lines 5 and 6 above.  
  Make the modifications below only for purposes of filling out Worksheet 4-2 above.  
  a. Reduce (but not below zero) the amount you otherwise would enter on line 3 of your Worksheet 4-1, line 3 of your Qualified Dividends and Capital Gain Tax Worksheet, or line 9 of your Schedule D Tax Worksheet by your capital gain excess.  
  b. Reduce (but not below zero) the amount you otherwise would enter on line 2 of your Worksheet 4-1, line 2 of your Qualified Dividends and Capital Gain Tax Worksheet, or line 6 of your Schedule D Tax Worksheet by any of your capital gain excess not used in (a) above.  
  c. Reduce (but not below zero) the amount on your Schedule D (Form 1040), line 18, by your capital gain excess.  
  d. Include your capital gain excess as a loss on line 16 of your Unrecaptured Section 1250 Gain Worksheet in the 2012 Instructions for Schedule D (Form 1040).