45-007: IA 2210 Underpayment of Estimated Tax by Individuals 45-007 (2025)
Iowa · Iowa DOR · Used for tax years 2025
The 2025 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 2025 IA 2210 to check whether they paid enough Iowa income tax throughout the year through withholding or estimated payments. If those payments were not sufficient, a penalty may apply.
For filing status 3, married filing separate returns, each individual must calculate the penalty separately. Estimated payments are credited to only one individual and must be made under that person's name and Social Security number.
Farmers and fishers who meet the two-thirds gross income test but did not file a return or pay the tax when due should use IA 2210F instead.
When it's due
For tax year 2025, the form lists these estimated-tax installment due dates:
- Installment 1: April 30, 2025.
- Installment 2: June 30, 2025.
- Installment 3: September 30, 2025.
- Installment 4: January 31, 2026.
If a due date falls on a weekend or a holiday as defined in Iowa Code section 421.9A, use the next regular business day. The number of installments required depends on when the estimated-tax requirements were first met.
For tax year 2025, qualifying farmers and fishers can be exempt from the underpayment penalty if they meet the two-thirds gross income test and either:
- Filed IA 1040 and paid the tax on or before March 1, 2026; or
- Paid the estimated tax in one payment on or before January 15, 2026.
The 2025 optional short-method calculation also uses April 30, 2026: if full payment was made before that date, complete lines 12 through 16 to calculate the penalty.
What you'll need
Have these forms and payment details available to complete IA 2210:
- Your 2025 IA 1040, including tax on line 18, refundable credits on lines 23 through 27, withholding on line 28, and estimated payments on line 29.
- Your 2024 IA 1040 tax and refundable credit amounts, plus your 2024 federal adjusted gross income and Iowa net modifications, for the line 7 calculation.
- The amounts and dates of your estimated-tax payments and any additional payment made to satisfy the tax shown on IA 1040.
- Your name and Social Security number.
If you annualize your income, see IA 2210 Schedule AI and its instructions. If the regular-method calculation needs more than the three payment lines provided, 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.
- Missing the stop instructions. You do not owe a penalty if line 3 or line 6 is less than $200, or if line 8 is no more than line 5. Under the optional short method, also stop if line 10 is less than $200.
- Combining spouses' estimated payments or penalty calculations. Payments are credited to one individual. Each spouse filing a separate return must calculate the penalty separately.
- Applying a payment only to the period you designated. Estimated payments go to the earliest unpaid installment, even if designated for a later period. Any overpayment carries to the next unpaid installment.
- Forgetting the annualized-income checkbox. If you use the annualized income installment method, check the box on IA 1040, line 35.
- Overlooking the weekend and holiday rule. Use the next regular business day when a due date falls on a qualifying weekend or holiday.
Questions people ask
Who can use the optional short method?
You may use it if you made no estimated payments or paid the same amount of estimated tax on each of the four payment due dates. Late estimated payments or annualizing your income require the regular method.
How can I avoid the underpayment penalty?
Your timely 2025 estimated payments plus 2025 Iowa withholding must equal at least the smaller of 90% of the tax shown on your 2025 return or the applicable prior-year amount. That prior-year amount is 100% of your 2024 tax if your 2024 federal adjusted gross income plus Iowa net modifications was $150,000 or less, or $75,000 or less for married filing separate federal returns. Above those limits, use 110%. The 2024 return must have covered, or would have covered if required, 12 months. For line 7, subtract the specified 2024 refundable credits from your 2024 tax.
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.
Can the penalty be waived?
The penalty may be waived for underpayment caused by casualty, disaster, or other unusual circumstances. It may also be waived if you retired at age 62 or later, or became disabled, during the tax year when estimated payments were required, and the underpayment was due to reasonable cause rather than willful neglect.