Article: 50007
Overview
According to the IRS, you are required to pay 90% of your tax for the current year before you file (via estimated taxes), or 100% of your tax for the previous tax year. When the system indicates that this requirement has not been met, it will prompt you to complete Form 2210.
Quarters and Payment Dates
Estimated tax payments are generally due as follows:
- January 1 to March 31 – due April 15
- April 1 to May 31 – due June 15
- June 1 to August 31- due September 15
- September 1 to December 31 – due January 15 of the following year
Form 2210
If the system is suggesting that you complete Form 2210, it is because you have an estimated tax penalty (for the underpayment of your tax liability during the year) calculating on Form 1040, line 38. This penalty is calculated automatically based on IRS guidelines.
If this is the first year you are using our site, you may see this penalty generated due to our system not having access to your prior-year information. Add Form 2210 to provide this information or request a waiver.
To add Form 2210:
- Click Federal Taxes > Review > I’d like to see the forms I’ve filled out or search a form.
- In the search bar, enter Form 2210.
- Click Add form beside Form 2210 – Penalty for Underpayment of Estimated Tax.
- Once you have added the form, fill it out according to your situation, then click Save at the bottom of the screen.
- If you qualify for a waiver, select the radio button and enter the requested details. See below for the different waiver types.
Full Waiver
When filling out the form, indicate whether you seek a partial or full waiver.
Provide:
- Prior Year Tax
- Prior Year AGI
- Amount to be waived
- Reason for the waiver
First-Time Users: If you’re filing with for the first time, the system might not have access to your prior-year data. Use Form 2210 to enter this manually.
Annualized Method Waiver
This method is helpful for self-employed taxpayers or anyone with fluctuating income. Use the bottom part of the 2210 screen to enter this information for the Annualized Income Installment Worksheet.
The annualized income installment method recalculates quarterly payments based on when income was actually received. This avoids penalties for uneven payments despite meeting the overall annual tax requirement.