N-220: Underpayment of Estimated Tax by Corporations and S Corporations (2024)
Hawaii · Hawaii DoTax · Used for tax years 2024
Hawaii Form N-220 calculates underpayments of estimated tax and any resulting penalty for corporations and S corporations for 2024. It reports required installments, estimated tax paid or credited, and underpayment amounts, and includes Schedule A for annualized income and adjust
Who files this form
Form N-220 is for corporations and S corporations figuring an underpayment of estimated tax. It is filed with Form N-30, Form N-35, or Form N-70NP.
The form lists these reasons for filing:
- Using the annualized income installment method.
- Using the adjusted seasonal installment method.
- Being a “large corporation” computing its first installment based on the prior year’s tax.
Check all boxes that apply. If none applies, continue to Part II.
If line 3, which is total tax minus the amounts on line 2c, is less than $500, do not complete or file Form N-220. The corporation does not owe the penalty.
When it's due
For the 2024 tax year, line 6 gives these estimated tax installment due dates:
- The 20th day of the 4th month of the corporation’s tax year.
- The 20th day of the 6th month.
- The 20th day of the 9th month.
- The 20th day of the 1st month following the close of the tax year.
For the penalty calculation, line 18 uses the date each installment was paid or the 20th day of the 4th month following the close of the tax year, whichever is earlier.
The form does not print a separate filing deadline for Form N-220.
What you'll need
Have these returns and records available for the entries the form requests:
- The corporation’s 2024 tax return, including its name, federal employer identification number, total tax, credits, and any look-back interest for completed long-term contracts.
- The corporation’s 2023 income tax return, if line 4 applies. The form cautions you to see the instructions before completing that line.
- Records of estimated tax paid or credited for each period, including payment dates.
If using Schedule A, have taxable income, other tax, and credit information for the applicable periods. The adjusted seasonal installment method also requests taxable income information for tax years beginning in 2021, 2022, and 2023, as well as 2024.
How to file
Attach Form N-220 to your tax return. File it with Form N-30, Form N-35, or Form N-70NP.
Enter the total underpayment penalty from Form N-220, line 21, on the applicable return:
- Form N-30, line 17.
- Form N-35, line 24.
- Form N-70NP, line 23.
The supplied form does not give a mailing address or e-file directions.
Common mistakes
- Entering the prior year’s tax without checking the instructions. Line 4 specifically cautions you to see the instructions before completing it.
- Using the adjusted seasonal installment method without meeting its condition. Schedule A cautions that this method may be used only if the base period percentage for any 6 consecutive months is at least 70%.
- Working across columns too soon. Complete Part II, lines 9 through 15, for one column before moving to the next. Schedule A gives the same reminder for lines 32 through 38.
- Overlooking the special rule for large corporations. The note on Schedule A, line 35, directs large corporations to the instructions for line 7 for the amount to enter.
Questions people ask
Do S corporations enter credits on line 2a?
No. The form tells S corporations to enter zero on line 2a.
What if there are no underpayments on line 14?
If there are no entries on line 14, no penalty is owed.
How are required installments calculated if none of the filing-reason boxes applies?
Enter 25% of line 5 in each column of line 7.
How does the form calculate the penalty?
For each column, line 20 multiplies the number of months on line 19 by .00667 and by the underpayment on line 16. Add the four column amounts to get the total penalty on line 21.