2220ME Annualized Worksheet: Annualized Income Installment Worksheet for Underpayment of Estimated Tax (2024)
Maine · Maine Revenue Services · Used for tax years 2024
The 2024 Maine Annualized Income Installment Worksheet helps corporations and financial institutions calculate estimated tax installments using annualized income. It calculates required installments for entry on Form 2220ME, Underpayment of Estimated Tax.
Who files this form
Corporations and financial institutions may use this worksheet if their income varied significantly during the year, such as income from a seasonal business or income received mostly at one time. It is used with Form 2220ME, Underpayment of Estimated Tax.
The worksheet helps determine actual tax liability for each estimated tax installment. Using the annualized income installment method may lower or eliminate quarterly estimated tax payments.
Do not complete this worksheet if line 1 or line 3 of Form 2220ME is less than $1,000. The worksheet states that estimated tax payments are not required if estimated tax liability for either 2023 or 2024, reduced by allowable credits, is less than $1,000.
What you'll need
Have these forms and records available:
- Form 2220ME: Complete lines 1 through 4 before starting this worksheet.
- Form 1120ME: You will need adjusted federal taxable income from line 4, credits from line 7c, and the Maine apportionment factor from Schedule A, line 1, column C.
- Income and tax liability records: You need amounts for the first three, five, eight, and eleven months of the tax year. The worksheet says actual liability for each installment must be established by adequate records.
Common mistakes
- Starting before completing Form 2220ME: Complete lines 1 through 4 of that form first.
- Working across columns too soon: Complete lines 1 through 16 in each column before moving to the next column.
- Assuming Maine periods match federal periods: The worksheet warns that they may not be the same.
- Using the worksheet below the stated threshold: Do not complete it if Form 2220ME, line 1 or line 3, is less than $1,000.
- Missing the large-corporation rule: Line 13 directs large corporations to the special instructions for their required installments.
Questions people ask
What periods does the 2024 worksheet use?
Columns A through D cover the first three, five, eight, and eleven months of the tax year. Their annualization factors are 4, 2.4, 1.5, and 1.09091, respectively.
How do I enter credits?
The instructions for line 7 say to enter the dollar amount of credits from Form 1120ME, line 7c. Enter the total amount in each column.
Where do I put the worksheet’s results?
On line 17, enter the smaller of line 12 or line 15 for each column. Enter those required installment amounts on Form 2220ME, line 5.
Is there a special rule for large corporations?
Yes. A large corporation, as defined by IRC § 6655(g)(2)(A), may elect to base its first required installment on the preceding year’s state income tax liability if that year was a 12-month taxable year. If it makes this election, its second required installment must equal 90% of its income tax liability for the first half of the current year, minus the first installment determined under this rule.