Quick question about tax Form 2210

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Topic Author
RCL
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Quick question about tax Form 2210

Post by RCL »

Form 2210 is for Underpayment of estimated tax by individuals

Question pertains to line 8: Maximum required annual payment based on prior year's tax (see instructions)

Looking at the instructions for Form 2210 line 8, I see no mention of "maximum required annual payment"

My tax software supplied Payment vouchers for tax year 2020.
Does line 8 pertain to the total combined amount of the 4 vouchers or something else?

Thanks
mhalley
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Re: Quick question about tax Form 2210

Post by mhalley »

Here is how to calculate the maximum annual payment:
https://support.cch.com/kb/solution.asp ... 040-return
Maximum required annual payment based on prior year's tax is determined as follows:

110% of prior year tax for taxpayers with prior year AGI of more than $150,000 if married filing joint, $75,000 for others.
100% of prior year tax for taxpayers with prior year AGI of $150,000 or less if married filing joint, $75,000 for others.
Topic Author
RCL
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Re: Quick question about tax Form 2210

Post by RCL »

mhalley wrote: Sat Nov 21, 2020 2:41 pm Here is how to calculate the maximum annual payment:
https://support.cch.com/kb/solution.asp ... 040-return
Maximum required annual payment based on prior year's tax is determined as follows:

110% of prior year tax for taxpayers with prior year AGI of more than $150,000 if married filing joint, $75,000 for others.
100% of prior year tax for taxpayers with prior year AGI of $150,000 or less if married filing joint, $75,000 for others.
Thank you very much for the link which by the way is pretty easy to understand
mhalley
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Re: Quick question about tax Form 2210

Post by mhalley »

Glad it was helpful.
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samsoes
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Re: Quick question about tax Form 2210

Post by samsoes »

RCL wrote: Sat Nov 21, 2020 3:03 pm
mhalley wrote: Sat Nov 21, 2020 2:41 pm Here is how to calculate the maximum annual payment:
https://support.cch.com/kb/solution.asp ... 040-return
Maximum required annual payment based on prior year's tax is determined as follows:

110% of prior year tax for taxpayers with prior year AGI of more than $150,000 if married filing joint, $75,000 for others.
100% of prior year tax for taxpayers with prior year AGI of $150,000 or less if married filing joint, $75,000 for others.
Thank you very much for the link which by the way is pretty easy to understand
This is incorrect, and the link supplied above is incorrect. The $75,000 calculation applies only to married filing separately, not all "others."
Single and Head of Household filers are not subject to the lower $75,000 parameter.

From the horse's mouth, https://www.irs.gov/instructions/i2210, the correct rule is:
If your adjusted gross income (AGI) for 2018 was more than $150,000 ($75,000 if your 2018 filing status is married filing separately), substitute 110% for 100%
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FiveK
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Re: Quick question about tax Form 2210

Post by FiveK »

RCL wrote: Sat Nov 21, 2020 2:35 pm Looking at the instructions for Form 2210 line 8, I see no mention of "maximum required annual payment"
See p. 4 of https://www.irs.gov/pub/irs-prior/i2210--2019.pdf:
Enter the 2018 tax you figured above unless the AGI on your 2018 return is more than $150,000 ($75,000 if married filing separately for 2019). If the AGI shown on your 2018 tax return is more than $150,000 ($75,000 if married filing separately), enter 110% of the amount of the tax computed earlier.
Of course, that is for 2019. 2020 instructions will have be similar but have different line numbers.

If you use the same tax software from year to year, it likely will do this for you.
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