45-007: IA 2210 Underpayment of Estimated Tax by Individuals 45-007 (2024)
Iowa · Iowa DOR · Used for tax years 2024
The 2024 Iowa IA 2210 helps individuals determine whether their Iowa income tax was sufficiently paid throughout the year through withholding or estimated payments. It calculates any underpayment penalty using an optional short method or a regular installment method.
Who files this form
Individual taxpayers, other than qualifying farmers or fishers, may use the 2024 IA 2210 to check whether they paid enough Iowa income tax throughout the year through withholding or estimated payments. If payments were not sufficient, a penalty may apply.
- For filing status 3, married filing separate returns, each individual must calculate the penalty separately.
- Qualifying farmers and fishers who meet the two-thirds gross income test but did not file or pay when due must use IA 2210F instead.
The form tells you to stop without a penalty if line 3 or line 6 is less than $200, or if line 8 is no more than the withholding on line 5. The optional short method also has a no-penalty stop if line 10 is less than $200.
When it's due
For tax year 2024, the form lists these estimated tax installment due dates:
- Installment 1: April 30, 2024.
- Installment 2: June 30, 2024.
- Installment 3: September 30, 2024.
- Installment 4: January 31, 2025.
If a due date falls on a weekend or holiday as defined in Iowa Code section 421.9A, the instructions say to use the next regular business day. The number of required installments depends on when you first met the estimated tax requirements.
For the 2024 farmer or fisher exemption, taxpayers meeting the two-thirds gross income test must either:
- File IA 1040 and pay the tax on or before March 1, 2025; or
- Pay the estimated tax in one payment on or before January 15, 2025.
April 30, 2025 is also the cutoff used in the 2024 form's penalty calculations. Under the short method, full payment before that date requires completing lines 12 through 16.
What you'll need
Have these returns and payment details available to complete the form:
- Your 2024 IA 1040, including tax on line 18, credits on lines 23 through 27, withholding on line 28, and estimated payments on line 29.
- Your 2023 IA 1040 information, including tax on line 18, refundable credits on lines 23 through 27, and federal AGI plus Iowa net modifications reported on line 3.
- The amounts and dates of your estimated tax payments.
- Your name and Social Security number.
If you annualize your income, see IA 2210 Schedule AI and its instructions. If you need more computations than the three lines allowed on the form, include a separate sheet for each additional computation.
Common mistakes
- Using the short method when it is not allowed. You must use the regular method if any estimated payment was late or if you choose to annualize your income.
- Combining separate taxpayers' payments or penalty calculations. Estimated payments are credited to only one individual and must be made under that person's name and Social Security number. Filing status 3 requires separate penalty calculations.
- Forgetting the annualized-income checkbox. If you use the annualized income installment method, you must check the box on IA 1040, line 35.
- Applying a payment only to the period you designated. Payments go to the earliest unpaid installment, even if designated for a later period. Any overpayment carries to the next unpaid installment.
- Using the wrong prior-year tax amount. Line 7 uses 2023 tax less applicable credits. Use 110% of that amount if 2023 federal AGI plus Iowa net modifications exceeds $150,000, or $75,000 for married filing separate federal returns.
Questions people ask
Who can use the optional short method?
Taxpayers who made no estimated payments, or paid the same estimated tax amount on each of the four payment due dates, may use it. Late estimated payments or annualizing income require the regular method.
How can I avoid an underpayment penalty for 2024?
Timely estimated payments plus 2024 Iowa withholding must equal at least the lesser of 90% of the tax shown on the 2024 return or the applicable prior-year amount. That prior-year amount is 100% of 2023 tax, or 110% if 2023 federal AGI plus Iowa net modifications exceeds $150,000, or $75,000 for married filing separate federal returns. The 2023 return must have covered, or would have covered, 12 months.
What if my income varied during the year?
The annualized income installment method may reduce or eliminate one or more required installments. See IA 2210 Schedule AI and its instructions, use the regular method, and check the box on IA 1040, line 35.
Where do I report the penalty?
Enter the calculated penalty on IA 1040, line 35. The short-method penalty comes from line 11 or line 16; the regular-method penalty comes from line 26.
Can the penalty be waived?
A waiver may be available if the underpayment resulted from casualty, disaster, or other unusual circumstances. It may also be available if you retired at age 62 or later, or became disabled, during the tax year for which estimated payments were required, and the underpayment was due to reasonable cause rather than willful neglect.