2210ME: Underpayment of Estimated Tax Penalty Calculation (2024)
Maine · Maine Revenue Services · Used for tax years 2024
Maine Form 2210ME calculates whether individuals, estates, or trusts owe a penalty for underpaying or paying estimated income tax late for 2024. It compares estimated tax due with withholding and payments for each installment period and calculates any underpayment penalty.
Who files this form
Individuals, estates, and trusts use Form 2210ME to check whether they owe a penalty for underpaying estimated tax or paying it late.
In general, a penalty applies if both:
- Your 2024 tax liability after allowable credits and withholding is $1,000 or more.
- Your 2023 tax liability before tax credits, withholding, or other tax payments was $1,000 or more.
You do not need to file this form if your 2024 tax liability after allowable credits and Maine withholding is less than $1,000, or your 2023 tax liability was less than $1,000.
If the penalty on line 16 is zero, do not file the form unless you used the annualized income installment method. If you used that method, you must file even when the penalty is zero.
When it's due
For tax year 2024, the estimated tax payment due dates printed on Form 2210ME are:
- April 17, 2024
- June 17, 2024
- September 16, 2024
- January 15, 2025
What you'll need
Have the following returns and payment information available:
- Your 2024 Form 1040ME or Form 1041ME, including tax, refundable credits, and Maine income tax withheld.
- Your 2023 Form 1040ME or Form 1041ME to determine the prior-year tax amount.
- Estimated tax payment amounts and dates, plus any credit carried forward from the previous tax year.
- The dates any underpayments were paid.
If you use the annualized income installment method, complete the Annualized Installment Worksheet for each payment due date. Forms are available at maine.gov/revenue/tax-return-forms.
How to file
Enclose Form 2210ME with your Form 1040ME or Form 1041ME.
- Complete Part I to determine whether you paid enough estimated tax on time.
- Complete Part II for quarters with an underpayment on line 11a.
- Enter the total penalty from line 16 on Form 1040ME, line 32, or Form 1041ME, line 10b.
- If you use the annualized income installment method, check line 17 and the corresponding box on Form 1040ME, line 32, or Form 1041ME, line 10b.
The supplied text does not give a mailing address or e-file instructions.
Common mistakes
- Skipping the form when an annualized calculation produces no penalty. You must still file if you used the annualized income installment method.
- Using the printed penalty-rate table for a fiscal year. Fiscal-year filers may not use that table.
- Ignoring a partial month. A part of a month counts as a whole month when calculating the underpayment period.
- Overlooking unusual-event income. If taxable income for an installment period exceeds income for the same prior-year period by at least $500,000, the instructions require payment of 90% of the tax on that unusual-event income for that period. Adjust line 9 for the affected 2024 installment period.
- Including slashes or hyphens in your identification number. The form says not to enter these characters in your SSN or EIN.
Questions people ask
Can I avoid a penalty by paying enough during the year?
Yes. The instructions say you avoid the underpayment penalty if you paid at least 90% of your 2024 tax on time, even if you are required to file this form.
What if my income varied during the year?
You may use the actual liability method, such as when you operate a seasonal business or receive most of your income in one payment. Complete the Annualized Installment Worksheet for each payment due date. This method may lower or eliminate quarterly estimated payments.
How is the penalty calculated?
The penalty is calculated separately for each underpaid installment and its period of underpayment. For calendar years 2024 and 2025, the rate is .8333% per month or fraction of a month, compounded monthly.
Is there a special rule for farmers and people who fish commercially?
Yes. No penalty is due if you file your income tax return and pay the tax liability in full on or before March 1 of the following year.