Form Mo 2210 – Fill Out and Use This PDF

MISSOURI DEPARTMENT OF REVENUE

UNDERPAYMENT OF ESTIMATED TAX BY INDIVIDUALS

2011

FORM

MO-2210

Attachment Sequence No. 1040-06

DLN

ATTACH THIS FORM TO FORM MO-1040

LAST NAME, FIRST NAME, INITIAL

SOCIAL SECURITY NUMBER

SPOUSE’S LAST NAME, FIRST NAME, INITIAL

SPOUSE’S SOCIAL SECURITY NO.

PRESENT ADDRESS (INCLUDE APARTMENT NUMBER OR RURAL ROUTE)

CITY, TOWN OR POST OFFICE, STATE AND ZIP CODE

13. Penalty. Subtract Line 12 from Line 11. Enter result here and on Form MO‑1040, Line 48 ....................................................................

13

Form MO-2210

PART III INSTRUCTIONS — REGULAR METHOD

Page 3

A.Purpose of the Form — Use this form to determine whether your income tax was sufficiently paid throughout the year by withholding or by estimated tax payments. If it is not, you may owe a penalty on the underpaid amount.

B.Filing an Estimated Tax Payment and Paying the Tax for Calendar Year Taxpayers — If you file returns on a calendar year basis and are required to file Form MO-1040ES, you are generally required to file an estimated tax payment by April 15, and to pay the tax in four installments. (If you are not required to file an estimated tax payment until later in the year because of a change in your income or exemptions, you may be required to pay fewer installments.) The chart below shows the due date for estimated tax payments and the maximum number of installments required for each.

Period	Due Date	Maximum Number
Requirements	of Estimated	of Installments
First Met	Tax Payments	Required
Between January 1 and April 1	April 15	4
Between April 2 and June 1	June 15	3
Between June 2 and Sept.1	Sept. 15	2
After Sept. 1	Jan. 15	1

When the due date falls on a Saturday, Sunday, or legal holiday, the estimated tax payment will be considered timely if filed on the next business day.

C.Fiscal Year Taxpayers — Fiscal year taxpayers should substitute for the due dates above, the 15th day of the first and last months of the second quarter of your fiscal year; the 15th day of the last month of the third quarter; and the 15th day of the first month of your next fiscal year.

D.Exception to the Penalty — You will not be liable for a penalty if your 2011 tax payments (amounts shown on Line 20) equal or exceed any amount determined for the same period under the following exception provisions. You may apply a different exception to each underpayment. Please enclose a separate computation page for each payment. If none of the exceptions apply, complete Lines 15 through Line 29.

The percentages shown on Lines 21, 22, and 23, for the April 15, June 15, and Sept. 15 installment dates, are for calendar year taxpayers required to pay installments on four dates.

Exception 1 — Prior Year’s Tax. — This exception applies if your 2011 tax payments equal or exceed the tax shown on your 2010 tax return. The 2010 return must cover a period of 12 months and show a tax liability.

Exception 2 — Tax on Prior Year’s Income using 2011 Rates and Exemptions — This exception applies if your 2011 tax withheld and estimated tax payments equal or exceed the tax that would have been due on your 2010 income if you had computed it at 2011 rates. To determine if you qualify for this exception, use the personal exemptions allowed for 2011, but use the other facts and law applicable to your 2010 return.

Exception 3 — Tax on Annualized 2011 Income — This exception applies if your 2011 tax payments equal or exceed 90 percent of the tax on your annualized taxable income for periods from the first of the year to the end of the month preceding that in which an installment is due. To annualize your taxable income, follow these four steps.

(a)Figure your adjusted gross income less itemized deductions from the first of your tax year up to and including the month prior to that in which an installment is due; or, if you use the standard deduction, figure your adjusted gross income for that period.

(b)Divide the result of step (a) by the number of months in your computation period.

(c)Multiply the result of step (b) by 12.

(d)Subtract the deduction for personal exemptions, federal tax and, if you did not itemize, subtract the standard deduction. The result is your annualized taxable income.

Exception 3 may not be used for the fourth installment period.

Example I (combined return with one dependent)

1.Wages, received during Jan., Feb., and Mar . . . . . . . . . . . . . . .$6,000

2.Self-employment income during Jan., Feb., and Mar. . . . . . . . .$4,000

3.Adjusted gross income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$10,000

4.Annualized income ($10,000 ÷ 3 x 12) . . . . . . . . . . . . . . . . . .$40,000

5.Less:

(a)Standard deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$11,600

(b)Exemptions (2 x $2,100) + (1 x $1,200) . . . . . . . . . . . . . . . .$5,400

(c)Federal tax (joint return) . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,500

6.Annualized taxable income . . . . . . . . . . . . . . . . . . . . . . . . . . .$21,500

7.Income Tax (from Missouri tax table) . . . . . . . . . . . . . . . . . . . . .$1,065

If your tax withheld and estimated tax payment for the first installment period of 2011 were at least $240 (22.5 percent of $1,065) you do not owe a penalty for that period.

Exception 4 — Tax on 2011 Income Over Periods of 3, 5, and 8 months

–This exception applies if your 2011 tax payments equal or exceed 90 percent of the tax on your taxable income for periods starting from the first of the year to the end of the month preceding that in which an install- ment is due. This exception does not apply to the fourth quarter. To determine if this exception applies for the first three quarters, figure your taxable income from January 1, 2011 to the end of the month preceding that in which an installment is due. Then compute your tax on that amount as though it represented your taxable income for 2011.

Example II

(combined return with one dependent, using standard deduction)

	(1)	(2)	(3)	(4)	(5)
	Computation	Income	Tax	90 percent	Tax
	Period			of Tax	Withheld
	Jan. 1 to Mar. 31	$15,000	0	0	$275
	Jan. 1 to May 31	$21,665	$113	$102	$458
	Jan. 1 to Aug. 31	$31,665	$655	$590	$733

Since the amounts in column (5) are greater than those in column (4) for each of the first three computation periods, there is no penalty for the first three installment periods.

E.Figure the Addition to Tax — For Line 27a, enter the number of days from the due date of the installment to the date of payment or December 31, 2011, whichever is earlier. If the payment date on Line 26 is December 31, 2011, or later and the due date of the installment is April 15, 2011, then enter 260 days; for June 15, 2011, 199 days; and for September 15, 2011, 107 days.

For Line 27b, enter the number of days from January 1, 2012, or the 2012 installment due date to date of payment or appropriate due date of return, whichever is earlier. If the payment date is April 15, 2012, enter 105 days for the first, second, and third quarters and 91 days for the fourth quarter.

F.Tax Withheld — You may consider an equal part of the income tax withheld during the year as paid on each required installment date, unless you establish the dates on which the withholding occurred and consider it paid on those dates.

G.Overpayment — Apply as credit against the next installment any install- ment overpayment shown on Line 19a that is greater than all prior under- payments.

H.Installment Payments – If you made more than one payment for any installment, enclose a separate computation for each payment. If you filed your return and paid the balance of tax due by February 1, 2012, consider the balance paid as of January 15, 2012.

I.Exception from the Addition to Tax for Service in a Combat Zone —

You may be exempt from a penalty for underpayment of estimated tax if you served in the U.S. Armed Forces in an area designated by the President as a combat zone under conditions which qualified you for hostile fire pay. If you are exempt for this reason, write on Line 19, for the appli- cable installment dates, “Exempt, combat zone.”

J.Farmers — If (1) your Missouri gross income from farming is at least two-thirds of your total Missouri gross income and (2) you filed a Missouri Individual Income Tax Return and paid tax on or before March 1, 2012, you are exempt from charges for underpayment of estimated tax. If so, write on Line 1, “Exempt, farmer”.

If you meet this gross income test but did not file a return or pay the tax when due, complete this form with respect to the last quarter only. Qualified farmers would enter all of Line 14 in the fourth quarter and calculate the appropriate underpayment.

This publication is available upon request in alternative accessible format(s).

MO 860-1101 (12-2011)

14.Enter the required annual payment, as computed on Part I, Line 6.

15.Divide the required annual payment (Line 14) by the number of required installments. If the estimated tax was the result of a change in income or exemptions during the year, you may require fewer installments. Otherwise, divide the required annual payment by four and place the amount in each column. (See instructions for farmers.)

16.Enter the amount of tax paid during the installment period. (The tax withheld throughout the year may be considered as paid in four equal parts on the due date of the installment, unless a different date is established.)

17.Enter the amount, if any, of overpayment reported on Line 19c from the previous installment period.

18.Enter the sum of Line 16 and Line 17.

19.If the amount on Line 15 is greater than the amount on Line 18, enter the difference here. You have underpaid for the installment period. If not, skip this line and go to Line 19a.

19a. If the amount on Line 18 is greater than the amount on Line 15, enter the difference here. You have overpaid for the installment period.

19b. Enter the amount of the underpayment (if any) from Line 19d of the previous column.

19c. and 19d.

If you filled in Line 19 of this column, add the amount on Line 19b to the amount on Line 19 and enter that total on Line 19d. If you filled in Line 19a of this column, and the amount on Line 19a is greater than any amount on Line 19b, enter the difference on Line 19c. You are overpaid. If the amount on Line 19b is greater than the amount on Line 19a, enter the difference on Line 19d. You are underpaid. See page 3 for instructions for Lines 20 through 24.

25.If you have an underpayment for the installment period and none of the exceptions on Lines 20 through 24 apply, enter on Line 25 the amount of the underpay- ment on Line 19d. If you do not have an underpay- ment, or if an exception applies, leave this blank and skip the remaining lines of the column.

26.Enter the date a payment was made on the install- ment, the due date of the following installment, or April 15, 2012, whichever is earlier. If more than one late payment was made to cover the installment, attach a separate computation for each payment during the installment period.

27a. Enter the number of days from the due date of the installment to the date entered on Line 26.

27b. Enter the number of days from January 1, 2012 (or a later date, if the installment date was after January 1) until either the date of the payment or April 15, 2012, whichever is earlier.

28a. Multiply the amount on Line 25 by the number of days on Line 27a. Divide this amount by 365 days and multiply the product by three percent. This is the penalty accruing on the underpayment during 2011.

28b. Multiply the amount on Line 25 by the number of days on Line 27b. Divide this amount by 366 days and multiply the product by three percent. This is the penalty accruing on the underpayment during 2012.

28c. Add the amounts on Lines 28a and 28b.

29.Add the sum of the amounts on Line 28c in the final column, if applicable.