221: of Estimated Tax by Individuals Form (2024)
Arizona · Arizona DOR · Used for tax years 2024
Arizona Form 221 calculates an individual's underpayment of estimated tax and any resulting penalty for 2024. It includes an annualized income installment worksheet and is included with Form 140, 140PY, or 140NR.
Who files this form
Arizona Form 221 calculates underpayment of estimated tax by individuals using Form 140, Form 140PY, or Form 140NR.
If your 2024 tax, minus tax credits and Arizona tax withheld, is less than $1,000 on line 6, stop. The form says you do not owe the penalty and should not file Form 221.
Line 1 includes a checkbox for claiming an exception because you qualified for federal relief under IRC § 6654. It refers you to instructions, which are not included in the supplied text.
When it's due
For tax year 2024, line 10 lists these estimated payment due dates:
- April 15, 2024
- June 17, 2024
- September 16, 2024
- January 15, 2025
The form does not state a separate Form 221 filing deadline. It says to include it with your return.
What you'll need
Have the following information available to complete the form:
- Your name and Social Security number, plus your spouse’s name if filing jointly.
- Your 2024 Arizona Form 140, Form 140PY, or Form 140NR, including tax and tax credits.
- Your Arizona tax withheld during 2024.
- Your immediately preceding year’s tax liability after tax credits.
- Estimated tax payment amounts and the dates underpayments were paid.
If you use the Annualized Income Installment Worksheet, you also need Arizona adjusted gross income, deductions, exemptions, and tax credits for the periods shown on the worksheet.
How to file
Include Form 221 with your Arizona Form 140, Form 140PY, or Form 140NR return, unless the line 6 rule tells you not to file it.
The supplied form does not give a mailing address or instructions for mailing or electronic filing.
Common mistakes
- Do not include estimated tax payments or extension payments on line 5. That line is only for Arizona tax withheld during 2024.
- Do not file Form 221 if line 6 is less than $1,000. The form says no penalty is owed in that case.
- Complete lines 13 through 15 in one column before moving to line 13 of the next column.
- Check the box on line 11 if you use another installment method. If you annualize, complete the page 2 worksheet and transfer each column’s line 23 amount to line 11.
- On the annualized worksheet, complete lines 1 through 23 in one column before starting the next column.
Questions people ask
How is the required annual payment calculated?
Line 9 uses the smaller of 90% of your 2024 tax after credits or your immediately preceding year’s tax liability after credits.
How many installments does the form use?
Line 11 says to divide the required annual payment by the number of payments required for the year, usually four.
Can I use an annualized income installment calculation?
Yes. The form includes an Annualized Income Installment Worksheet on page 2. Enter the result from line 23 of each worksheet column in the corresponding column of line 11 on page 1.
Does this version provide every penalty interest rate?
No. It prints an 8% rate for the first three rate periods, but marks the rate for January 1, 2025, through April 15, 2025, as a percentage to be determined.