No text to extract.
| No text to extract. |
|
IT/SD 2210 Long
Taxpayer’s name Taxpayer’s SSN or FEIN Rev. 1/15
Part I – Calculating the Required Annual Payment – Long Method
Use this form to calculate interest penalty on underpayment of taxes and to show the exceptions where no interest penalty is
due. Individuals and estates subject to school district income tax should see Note 1 on page 11.
Check here if you engage in farming or fi shing activities and see Note 2 on page 11.
1. 2014 Ohio income tax after all nonrefundable credits (from 2014 Ohio forms IT 1040EZ, line 14;
IT 1040, line 17; IT 1040X, line 16, as amended; SD 100, line 6; SD 100X, line 6, as amended;
SD 100E, line 3; IT 1041, line 11; IT 1140, line 1, the sum of both columns; IT 4708, line 12) ...................1. 00
2. 2014 Ohio income taxes withheld by others, refundable credits and overpayment credit carryover from
2013 (do not include estimated tax payments on this line).1 Note: For Ohio form IT 1140, there are no
taxes withheld by others and no refundable credits other than last year’s tax overpayment credited to
this year....................................................................................................................................................2. 00
3. Line 1 minus the amount on line 2 (if less than zero, enter -0-) ...............................................................3. 00
Is line 3 less than or equal to $500? Yes No
If the answer is yes, STOP. You have no interest penalty.
If the answer is no, continue to line 4.
4. Multiply line 1 by 90% (.90) .......................................................................................................................4. 00
Is line 2 greater than or equal to the amount on line 4? Yes No
If the answer is yes, STOP; you have no interest penalty.
If the answer is no, continue to line 5.
5. 2013 Ohio income tax after all nonrefundable credits 2 (from 2013 Ohio forms IT 1040EZ, line 14;
IT 1040, line 17; IT 1040X, line 16, as amended; SD 100, line 6; SD 100X, line 6, as amended;
SD 100E, line 3; IT 1041, line 11; IT 1140, line 1, the sum of both columns; IT 4708, line 12) ................5. 00
Is line 2 greater than or equal to the amount on line 5? Yes No
If the answer is yes, STOP; you have no interest penalty.
If the answer is no, continue to line 6
6. Amount shown on line 1 above ...............................................................6. 00
7. Statutory amount .....................................................................................7. < $500 > 00
8. Line 6 minus line 7 ...................................................................................................................................8. 00
9. Required annual payment. Enter the smallest of lines 4, 5 or 8. Please continue to page 3, line 1 ........9. 00
1 Do not include on this line any portion of the overpayment credit carryforward from 2013 to the extent that the overpayment is attributable to year 2013 Ohio income tax that
you paid after April 15, 2014.
2 If you fi led a married filing joint return the previous taxable year and are filing a single or married filing separate return for the current taxable year, enter only the portion of the
previous year’s tax that was attributable to you.
- 2 -
|
| No text to extract. |
| No text to extract. |
| No text to extract. |
| No text to extract. |
| No text to extract. |
| No text to extract. |
| No text to extract. |
| Back |
|
IT/SD 2210 Long
Rev. 1/15
Notes for Part I and Part II
Note 1 (for pages 2 and 3): Some individuals may avoid the inter- year), and fi le the annual individual income tax return and school
est penalty if they combine their state income tax with their school district income tax return and pay all remaining tax due on or
district income tax and then determine if any of the following three before the 15th day of the fourth month following the close of the
circumstances applies: taxpayer’s taxable year (for calendar year taxpayers, this would
be April 15 of the year immediately following the taxable year).
(a) The sum of (i) the taxpayer’s state income tax liability for the If this date falls on a Saturday, Sunday or holiday, then the due
current year (2014 Ohio form IT 1040, line 17 or IT 1040EZ, date becomes the fi rst business day immediately following such
line 14) and (ii) the taxpayer’s school district income tax liability due date.
(2014 Ohio form SD 100, line 4) minus the taxpayer’s combined
withholdings, refundable credits and combined overpayment Under this second option the taxpayer has the election to extend
credit carryovers from year 2013 is $500 or less. the fi ling of the Ohio income tax return and the school district
income tax return ifthe taxpayer has received from the IRS an
(b) The sum of (i) the taxpayer’s combined withholdings, (ii) extension of time to fi le the federal income tax return. Note that
combined refundable credits and (iii) combined overpayment there is no extension of time to pay the taxes due. See Ohio
credit carryovers from 2013 is equal to or greater than the sum Administrative Code Rule 5703-7-05, which addresses the
of (i) the taxpayer’s state income tax liability for the immediately imposition of interest and penalties (and safe harbors to avoid
preceding year (2013 Ohio form IT 1040, line 17 or IT 1040EZ, penalties) for taxpayers who fail to pay all taxes due by the
line 14) and (ii) the taxpayer’s school district income tax liability unextended due date.
for the immediately preceding year (2013 Ohio form SD 100,
line 4). If the taxpayer qualifi es for and chooses Option 1, enter -0- on Ohio
form IT/SD 2210, page 1 and print “Option 1.” Also, enter -0- on the
(c) The sum of (i) the taxpayer’s combined withholdings, (ii) interest penalty line on both Ohio form IT 1040 and form SD 100.
combined refundable credits and (iii) combined overpayment When mailing Ohio form IT 1040, SD 100 or SD 100E, include page
credit carryovers from 2013 is equal to or greater than the sum 1 of this form. Please also provide documentation showing that the
of 90% of the taxpayer’s state income tax liability for the current taxpayer is a farmer.
year (2014 Ohio form IT 1040, line 17 or IT 1040EZ, line 14)
and 90% of the taxpayer’s school district income tax liability for If the taxpayer qualifies for and chooses Option 2, do not complete
the current year (2014 Ohio form SD 100, line 4). columns A, B and C on page 3, but print “Option 2” on line 8 across
columns A, B and C. Complete column D on page 3 to determine if
If this note applies to you, modify this form accordingly and include there is any interest penalty due. Enter on page 1 of Ohio form IT/
with Ohio forms IT 1040 and SD 100 a copy of the modifi ed Ohio SD 2210 (on the “total interest penalty due” line) and on line 18 of
form IT/SD 2210. Ohio form IT 1040 the amount shown on page 3, line 9, column D
of this form. Follow the same procedures with respect to Ohio form
The above provisions also apply to estates. If these provisions SD 100 or SD 100E.
apply to an estate, modify this form accordingly and include with
Ohio forms IT 1041 and SD 100E a copy of the modifed Ohio form Taxpayers that choose either of these options should include
IT/SD 2210. documentation with their Ohio income tax return (form IT 1040
or IT 1040EZ) verifying their farming and/or fi shing activities.
Note 2 (for pages 2 and 3): Special Rule for Farmers and Documentation should include page 1 of the taxpayer’s federal
Fishermen return and the federal Schedule E and/or Schedule F.
Ohio Administrative Code Rule 5703-7-04 provides two options
for each taxpayer for whom at least two-thirds of gross income is Note 3 (for page 3, line 3): Information release #IT-2006-01, issued
from farming and fi shing, as those terms are defined under U.S. March 2006, discusses how the Ohio Department of Taxation will
Treasury regulation sections 1.6073-1(b)(2) and (3). Such taxpayers apply married filing jointly estimated income tax payments when
may choose either of the following two options instead of making the spouses subsequently fi le married fi ling separately income tax
the four estimated income tax payments: returns. As a general rule, the Ohio Department of Taxation will credit
to the “fi rst spouse to file” the entire amount of such married filing
Option 1 – Make no payments of estimated tax but fi le the yearly jointly estimated tax payments. If the amount of such married filing
individual income tax return and the yearly school district income jointly estimated tax payments exceeds the amount of tax, reduced
tax return and pay all tax due by the fi rst day of the third month by credits and withholdings, then the Ohio Department of Taxation
following the close of the taxpayer’s taxable year (for calendar will credit the excess to the “second spouse to file.”
year taxpayers, this would be March 1 of the year immediately
following the taxable year). If this date falls on a Saturday, Sunday The “fi rst to fi le” rule discussed in the information release applies only
or holiday, then the payment of tax and the fi ling of the income for purposes of determining either additional tax due or a tax refund
tax return are due on the fi rst business day immediately following and does not apply for purposes of computing interest penalty, if any,
the fi rst day of the third month following the close of the taxable due. So, for purposes of computing the Ohio Revised Code section
year. 5747.09 interest penalty, spouses who remit married fi ling jointly
estimated tax payments but who fi le married fi ling separately income
Option 2 – Pay all estimated tax (90% of the current taxable tax returns, may allocate in any manner those estimated payments.
year’s tax or 100% of the immediately preceding taxable year’s That is, for purposes of completing this form, the spouses need not
tax) by the 15th day of the fi rst month following the close of the follow the “fi rst to fi le” rule set forth in the information release.
taxpayer’s taxable year (for calendar year taxpayers, this would
be Jan. 15 of the calendar year immediately following the taxable See Example 1 and Example 2 on page 12.
- 11 -
|
|
IT/SD 2210 Long
Rev. 1/15
Example 1 for Note 3 on Page 11
Facts
1. Married fi ling jointly estimated taxes paid for the current taxable year are as follows:
April 15.... $4,000
June 16... $4,000
Sept. 15 .. $4,000
Jan. 15.... $4,000
2. W’s tax (married fi ling separately) for the current taxable year after credits: $10,000.
H’s tax (married fi ling separately) for the current taxable year after credits: $6,600.
Each taxpayer recognized the income equally over the year (so the “annualization method” is not applicable).
3. W fi les timely, but prior to H, who also files timely. W claims estimated tax payment of $10,000; W owes no tax. H claims estimated tax
payments of $6,000; H owes (and timely pays) $600 tax.
Analysis
According to the information release, for purposes of determining tax due and refunds the Ohio Department of Taxation will allocate
the payments as follows:
Date Paid Amount Allocated to W Amount Allocated to H
April 15 $ 4,000 $ 0
June 16 $ 4,000 $ 0
Sept. 15 $ 2,000 $ 2,000
Jan. 15 $ 0 $ 4,000
Total $10,000 $ 6,000
Note that the Ohio Department of Taxation allocates to the “first to file married filing separately” taxpayer all married filing jointly estimated
tax payments. If, after such allocation, the married filing jointly estimated tax payments exceed the tax due by the “first to file married filing
separately” taxpayer, the department will then allocate to the “second to fi le married fi ling separately” taxpayer the excess married filing
jointly estimated tax payments.
However, for purposes of determining interest penalty due, W and H may allocate in any manner the married fi ling jointly estimated
tax payments. As such, to avoid interest penalty, W and H may allocate the married fi ling jointly payments as follows:
Date Paid Amount Allocated to W Amount Allocated to H
April 15 $ 2,500 $ 1,500
June 16 $ 2,500 $ 1,500
Sept. 15 $ 2,500 $ 1,500
Jan. 15 $ 2,500 $ 1,500
Total $10,000 $ 6,000
By allocating the married fi ling jointly estimated tax payments in the manner shown above, neither W nor H will owe any interest penalty
since each taxpayer will be deemed to have timely paid suffi cient estimated tax (at least 90% of the tax for the current taxable year).
Example 2 for Note 3 on Page 11
Facts
1. Married fi ling jointly estimated taxes paid for the current taxable year are as follows:
April 15.... $4,000
June 16... $4,000
Sept. 15 .. $4,000
Jan. 15.... $4,000
2. For the previous taxable year W’s married fi ling separately tax liability was $1,000, and H’s married filing separately tax liability was
$15,000.
3. W’s tax (married fi ling separately) for the current taxable year after credits: $17,000
H’s tax (married fi ling separately) for the current taxable year after credits: $3,000
Each taxpayer recognized the income equally over the current taxable year (so the “annualization method” is not applicable).
4. W’s married fi ling separately tax return claims the entire $16,000 of married filing jointly estimated tax payments. W timely pays $1,000
shown to be the balance due. H’s married fi ling separately return claims none of the married filing jointly estimated tax payments. H
timely pays the $3,000 shown to be the balance due. W timely fi les before H, who also timely files.
- 12 -
|
|
IT/SD 2210 Long
Rev. 1/15
Analysis
According to the information release, for purposes of determining tax due and refunds, the Ohio Department of Taxation will allocate
the payments as follows:
Date Paid Amount Allocated to W Amount Allocated to H
April 15 $ 4,000 $ 0
June 16 $ 4,000 $ 0
Sept. 15 $ 4,000 $ 0
Jan. 15 $ 4,000 $ 0
Total $16,000 $ 0
Note that the Ohio Department of Taxation allocates to the “first to file married filing separately” taxpayer all married filing jointly estimated
tax payments. If, after such allocation, the married filing jointly estimated tax payments exceed the tax due by the “first to file married filing
separately” taxpayer, the department will then allocate to the “second to fi le married fi ling separately” taxpayer the excess married filing
jointly estimated tax payments.
In this example, W’s tax before application of estimated tax payments is greater than the allocated amounts. So for purposes of determin-
ing the tax due or a refund due, H, the “second to fi le married fi ling separately” taxpayer cannot claim any portion of the estimated tax
payments.
However, for purposes of determining interest penalty due, W and H may allocate in any manner the married fi ling jointly estimated
tax payments. As such, to avoid interest penalty, W and H may allocate the married fi ling jointly payments as follows:
Date Paid Amount Allocated to W Amount Allocated to H
April 15 $ 250 $ 3,750
June 16 $ 250 $ 3,750
Sept. 15 $ 250 $ 3,750
Jan. 15 $ 250 $ 3,750
Total $ 1,000 $15,000
By allocating the married fi ling jointly estimated tax payments in the manner shown above, neither W nor H will owe any interest penalty
since each taxpayer will be deemed to have timely paid suffi cient estimated tax (at least 100% of the tax for the previous taxable year).
- 13 -
|
|
IT/SD 2210 Long
Rev. 1/15
Note 4 for Page 3, Line 7
The listed ratios on page 3, line 7 are based upon the statutory the underpayment by the recomputed ratio. Line 8, column A would
interest rate (3% for 2014 and 3% for 2015) and the time during show $2.47 (include detailed calculations).
which the estimated payment was late. The general formula for
computing the ratio is: ratio = interest rate X numbers of days the This method applies only if the taxpayer made full payment of the
payment is late/365.* The listed ratios are computed from the pay- required estimated payment after the due date but before the next
ment due date at the top of each column to the following payment payment due date. If the taxpayer made a partial payment after
due date and apply only if the taxpayer either (i) never made the the due date but before the next payment due date, see Example
estimated payment or (ii) made full payment on or after the next 3, below.
payment due date.
Example 3 – Partial payment made after the due date but before
Example 1 – No payment made. Assume that the underpayment the next due date. Assume that the underpayment shown on page
shown on page 3, line 6 for the 4/15/14 due date is $1,000. Also 3, line 6 for the 4/15/14 due date is $1,000. Also assume that the
assume that the taxpayer made no estimated payment during the taxpayer paid $600 of this amount on 5/15/14. The taxpayer would
period 4/15/14 through 6/17/14. The taxpayer will compute interest ignore the ratio on page 3, line 7 and would compute the line 8
penalty for the period 4/15/14 through 6/16/14 by multiplying the interest penalty on the underpayment for the periods both before
underpayment shown on line 6, column A by the ratio (.005096) and after the partial payment as follows:
shown on line 7, column A:
Step 1 – Determine the number of days from the date the payment
Interest penalty = $1,000 X .005096 = $5.10 to line 8, column A was due (4/15/14) to the date the payment was made (5/15/14):
4/15/14 to 5/15/14 = 30 days.
.005096 = .03 X 62/365. There are 62 days from April 15 until June
16. Step 2 – Using the following formula, calculate the interest penalty
for that period:
Note: If the taxpayer made a full or a partial payment of the required
estimated payment after the payment due date, but before the next Interest penalty = underpayment X interest rate X number of days
payment date, ignore the ratio on page 3, line 7 and calculate the late/365*
line 8 interest penalty using the following formula:
Interest penalty for 4/15/14 to 5/15/14 = $1,000 X .03 X 30/365 =
Interest penalty = underpayment X interest rate X number of days $2.47
late/365.* See Example 2, below, and Example 3, at right.
Step 3 – Determine the number of days from the payment date
Example 2 – Full payment made after the due date but before (5/15/14) to the next required due date (06/16/14): 5/15/14 to
the next due date. Assume that the underpayment on page 3, line 6/16/14 = 32 days.
6 for the 4/15/14 due date is $1,000. Also assume that the taxpayer
paid this full amount on 5/15/14. The taxpayer should ignore the Step 4 – Using the following formula, calculate the interest penalty
ratio on line 7 and compute the rate for the late payment as follows: on the $400 underpayment ($1,000 minus $600) for the 23-day
period from 5/15/14 to 6/16/14:
Step 1 – Determine the number of days from the date the payment
was due (4/15/14) to the date the payment was made (5/15/14): Interest penalty = underpayment X interest rate X number of days
4/15/14 to 5/15/14 = 30 days. late/365*
Step 2 – Calculate the ratio by using the following formula: Interest penalty for 5/15/14 to 6/16/14 = $400 X .03 X 32/365* =
$1.05
Ratio = interest rate X number of days late/365*
Ratio = .03 X 30/365 = .00247 Step 5 – Add the amounts determined in Steps 2 and 4: $2.47 +
$1.05 = $3.52. The taxpayer would (i) cross out the ratio on line 7,
The taxpayer would enter the recomputed ratio (.00247) on page column A, page 3, (ii) enter $3.52 on page 3, line 8, column A, and
3, line 7, and then compute the interest penalty (page 3, line 8, (iii) include detailed calculations.
column A) for the period 4/15/14 through 5/15/14 by multiplying
*For leap years use 366 days instead of 365 days.
- 14 -
|