2220ME Annualized Worksheet: Annualized Income Installment Worksheet for Underpayment of Estimated Tax (2025)
Maine · Maine Revenue Services · Used for tax years 2025
This worksheet helps corporations and financial institutions calculate required estimated tax installments using the annualized income installment method. It calculates tax based on income for specified periods, Maine apportionment and credits, with the required installment amoun
Who files this form
This worksheet is for corporations and financial institutions using Form 2220ME. You may use it if your income varied significantly during the year, such as from a seasonal business or receiving most of your income at one time.
Taxpayers must make four equal estimated tax installments unless adequate records establish the actual liability for each installment. This worksheet helps determine that liability and may lower or eliminate quarterly estimated tax payments.
Do not complete this worksheet if Form 2220ME, line 1 or line 3, is less than $1,000. You are not required to pay estimated tax if your estimated tax liability for either 2024 or 2025, after allowable credits, is less than $1,000.
What you'll need
Have these forms and records available to complete the worksheet:
- Form 2220ME: Complete lines 1 through 4 before starting the worksheet.
- Form 1120ME: Use 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 records for each annualization period: You need the income applicable to the first three, five, eight, and eleven months of the tax year. The worksheet requires adequate records to establish actual liability for each installment.
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 one column before starting the next column.
- Assuming Maine periods match federal periods: The worksheet warns that they may differ.
- Overlooking the $1,000 rule: Do not complete the worksheet if Form 2220ME, line 1 or line 3, is less than $1,000.
- Missing the large-corporation rule: Large corporations should follow the special instructions for line 13 rather than relying only on the general 25% instruction.
Questions people ask
What periods does the 2025 worksheet use?
Columns A through D cover the first three, five, eight, and eleven months of the tax year. The annualization multipliers are 4, 2.4, 1.5, and 1.09091, respectively.
How do I calculate annualized taxable income?
Enter the adjusted federal taxable income applicable to each period on line 2, using Form 1120ME, line 4. Multiply each amount by the corresponding multiplier on line 3 and enter the result on line 4.
Which credits go on line 7?
Enter the dollar amount of credits from Form 1120ME, line 7c. Enter the total amount in each column.
How does this worksheet connect to Form 2220ME?
For each column, enter the smaller of line 12 or line 15 on worksheet line 17. Transfer those required installment amounts to Form 2220ME, line 5.