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Publication 505

Figuring Your Required Annual Payment  
(Part I)(p50)

Figure your required annual payment in Part I of Form 2210, following the line-by-line instructions. If you rounded the entries on your tax return to whole dollars, you can round on Form 2210.


The tax on Ivy Fields' 2009 return was $12,400. Her AGI was not more than $150,000. The tax on her 2010 return (Form 1040, line 55) is $13,044. Line 56 (self-employment tax) is $8,902. Her only refundable credit is the making work pay credit ($400). Her 2010 total tax is $21,546.
For 2010, Ivy had $1,600 income tax withheld and made four equal estimated tax payments ($1,000 each). 90% of her 2010 tax is $19,391. Because she paid less than her 2009 tax ($12,400) and less than 90% of her 2010 tax ($19,391), and does not meet an exception, Ivy knows that she owes a penalty for underpayment of estimated tax. The IRS will figure the penalty for Ivy, but she decides to figure it herself on Form 2210 and pay it with her taxes when she files her tax return.
Ivy's required annual payment is $12,400 (100% of 2009 tax) because that is smaller than 90% of her 2010 tax.
Figure 4-A on page 55 shows page 1 of Ivy's filled-in Form 2210. Her required annual payment of $12,400 is shown on line 9.

Different 2009 filing status.(p50)

If you file a separate return for 2010, but you filed a joint return with your spouse for 2009, see 2009 joint return and 2010 separate returns on page 49 to figure the amount to enter as your 2009 tax on line 8 of Form 2210.