AR2220A-CT: Annualized Underpayment of Estimated Tax (Revision 2024-06)
Arkansas · Arkansas DFA · Used for tax years 2024
Arkansas Form AR2220A-CT calculates a corporation’s required estimated tax payments using annualized taxable income. It accounts for business and incentive credits and carries the required estimates to Form AR2220-CT.
What you'll need
Have these records and details ready:
- Quarterly income statements. Lines 1 and 4 instruct you to attach a quarterly income statement.
- The corporation’s name, FEIN, and tax-year beginning and ending dates.
- Taxable income for each period shown on the form.
- Form AR2220-CT, including the amount on Line 3.
- Business and Incentive Credit amounts allowed on AR1100CT, Line 32, if applicable.
- The Tax Table referenced on Line 8 to calculate tax on adjusted annualized taxable income.
Common mistakes
- Completing columns out of order. The form says to complete Column (A) before (B), (B) before (C), and (C) before (D).
- Leaving out quarterly income statements. Lines 1 and 4 both remind you to attach a quarterly income statement.
Questions people ask
How do I calculate annualized taxable income?
Multiply Line 1 by Line 2 to get Line 3. Multiply Line 4 by Line 5 to get Line 6.
What goes on Line 7?
In Column (A), enter the amount from Line 6, Column (A). In Columns (B), (C), and (D), enter the smaller of Line 3 or Line 6 for that column.
How do I enter Business and Incentive Credits?
On Line 9, enter one-fourth of the Business and Incentive Credits allowed on AR1100CT, Line 32, for each period. Subtract Line 9 from Line 8 to get Line 10. If the result is zero or less, enter zero.
Where do the required estimates from Line 20 go?
For each column, enter the smaller of Line 15 or Line 18 on Line 20. Transfer those amounts to Form AR2220-CT, Column B, Lines 2, 5, 8, and 11.