Form M 2210 – Fill Out and Use This PDF

Form M-2210

UnderpaymentofMassachusetts

EstimatedIncomeTax

2011

Massachusetts

Department of

Revenue

General Information

Who should use this form. If you are an individual, or a tax- payer taxed as an individual, you should use Form M-2210 to determine if your estimated and/or withholding tax payments were sufficient. If they were not, an underpayment penalty will be imposed, unless you qualify for one of the exceptions or waivers explained below.

Filing estimated tax vouchers. You are required to file esti- mated tax vouchers if you reasonably expect to pay more than $400 in Massachusetts income tax on income which is not covered by withholding. For further information regarding estimated taxes, see the instructions for Form 1-ES Payment Vouchers or the publication Should You Be Paying Estimated Taxes?

Exceptions which avoid the penalty. No underpayment penalty

will be imposed if:

1.Your 2011 tax due after credits and withholding is $400 or less.

2.You were a qualified farmer or fisherman who filed and paid in full with your return by March 1, 2012. To qualify, your gross in- come from farming or fishing must be at least two-thirds of the annual gross income shown on your 2010 or 2011 return.

3.You were a resident of Massachusetts for the full 12 months of the previous taxable year and were not liable for taxes.

4.Your 2011 estimated payments and withholding (line 8) made on or before each installment due date in the taxable year equal or exceed the tax shown on your 2010 return divided among the four installment due dates provided that such return was for a full 12-month period.

If you qualify for an exception, do not complete lines 13 through

23.Instead, check the appropriate box on the front of this form and fill in the “EX” oval on the back of Form 1 or Form 1-NR/PY. Enclose this form with your return. If you qualify for the first ex- ception (your 2011 tax due after credits and withholding is $400 or less) you do not need to complete this form.

Waiver of underpayment penalty. A waiver of underpayment penalty for one or more installments may be granted if:

1.Your underpayment was by reason of casualty, disaster or un- usual circumstance; or

2.You retired in 2010 or 2011 after reaching age 62, or you be- came disabled and your underpayment was due to reasonable cause and not willful neglect.

If you qualify for the waiver, complete lines 7 through 12 for the installment(s) for which you are claiming a waiver, and write “WAIVER” in the appropriate box(es) in line 13. Fill in the “EX” oval on the back of Form 1 or Form 1-NR/PY. Enclose this form and an explanation of your reasons for claiming the waiver with your return.

Line-by-Line Instructions

Figuring your underpayment and penalty. To determine the underpayment amount, complete lines 1 through 12, in order of installment due dates, taking care to complete all four columns for lines 7 through 12.

Line 5

•If you filed a return for 2010 and it was for a full 12 months, enter your 2010 tax liability after credits.

•If you were a resident of Massachusetts for 12 months in 2010 and you were not liable for taxes, enter “0.”

•If you did not file a return for 2010, or if your 2010 tax year was less than 12 months, do not complete line 5. Instead, enter the amount from line 4 in line 6.

Line 8

If more than one payment is made for a given installment, attach a separate penalty computation for each payment.

If you had any taxes withheld during the year, you may apply an equal part of those taxes as payment on each required install- ment(s). If you can establish the actual dates and amounts of your withholding, you may consider those amounts as payments on the dates they were actually withheld.

Line 11

If line 11 shows an overpayment, that overpayment may be used as payment of any existing underpayment amount. Overpayments used as payments of prior underpayment amounts do not de- crease the actual underpayment amount but serve to reduce instead the period of underpayment subject to penalty. If there are no existing underpayment amounts, the overpayment is applied as a credit against the next installment.

Line 12

If line 12 shows an underpayment, see the General Information section to determine whether you qualify for an exception to, or waiver of, the underpayment penalty. If you do not qualify, con- tinue on through line 23 to determine your underpayment penalty.

Annualized income installment method. If you do not receive taxable income evenly throughout the year, you may wish to annualize your income to adjust your required installment amount(s). Enter any adjusted installment amount in the appro- priate column in line 7 and calculate any underpayment penalty from those figures. Write “ANNUALIZED” under the column in line 23. For more information on using the Annualized Income Installment method, please refer to the Massachusetts Depart- ment of Revenue’s Annualized Income Installment Worksheet, Form M-2210A. Form M-2210A may be obtained by visiting DOR’s website at www.mass.gov/dor or by calling (617) 887-MDOR.

Fiscal year taxpayers. If you file on a fiscal year basis and are subject to an underpayment penalty, attach a separate statement to calculate the penalty due based on the interest rate(s) in effect for the period(s) of the underpayment(s).