2220N: Corporation Underpayment of Estimated Tax (2025)
Nebraska · Nebraska DOR · Used for tax years 2025
Nebraska Form 2220N calculates underpayments of estimated tax and any related penalty for corporations, S corporations, and partnerships for 2025. It reports required installments, payments and credits, and is attached to Form 1120N, 1120-SN, or 1065N.
Who files this form
For tax year 2025, corporations, S corporations, and partnerships must file Form 2220N when line 3, Nebraska tax after refundable credits, is $400 or more.
For S corporations and partnerships, this applies to entities that elected to be subject to tax under Nebraska Revised Statutes §§ 77-2727(6) or 77-2734.01(8) for the tax year.
The corporate taxpayer category includes entities taxed as corporations under the Internal Revenue Code, except S corporations and financial institutions defined in Nebraska Revised Statute § 77-3801.
If line 3 is less than $400, stop. Do not complete the rest of the form. No penalty is owed.
When it's due
For tax year 2025, estimated tax installments are due on the 15th day of the 4th, 6th, 9th, and 12th months of your tax year. Enter those dates on line 6.
File Form 2220N with your Nebraska income tax return. The text does not give a specific calendar filing deadline for that return.
What you'll need
Have these returns and records available:
- Your 2025 Form 1120N, 1120-SN, or 1065N, including Nebraska tax after nonrefundable credits and your total refundable credits.
- Your 2024 Nebraska return, if you are eligible to use the prior year's tax to calculate required payments.
- Records of 2025 estimated income tax payments and payment dates, Nebraska income tax withheld, and any 2024 overpayment credited to 2025 estimated tax.
- A recalculated Federal Schedule A using Nebraska income and other Nebraska amounts, if you use the adjusted seasonal or annualized income installment method. Attach that schedule.
How to file
Attach Form 2220N to your Nebraska Form 1120N, 1120-SN, or 1065N and file it with that return. The text does not provide a mailing address or e-file directions.
- Enter the name on the tax return and Nebraska ID number, and identify the return type.
- Check any applicable boxes for the adjusted seasonal installment method, annualized income installment method, or large corporation status.
- Complete Part I to calculate any underpayment. Complete lines 8 through 15 for one column before moving to the next.
- If line 14 shows an underpayment, complete Part II, lines 16 through 20, to calculate the penalty.
- Transfer the total on line 20 to line 33 of Form 1120N or line 30 of Form 1120-SN or 1065N.
Paper filers must enter dates on lines 6 and 17 in MMDDYYYY format.
Common mistakes
- Using an ineligible prior-year tax amount. If the prior year's tax is zero or the return covers less than 12 months, skip line 4 and enter line 3 on line 5. Large corporations have additional restrictions on using prior-year tax.
- Including older pass-through entity tax amounts. Do not include PTET credits received for tax years 2018 through 2022 in the line 4 calculation, or PTET payments made for those years on line 8.
- Working across columns too soon. Complete lines 8 through 15 for one column before starting the next column.
- Leaving out a required schedule. If you use the adjusted seasonal or annualized income installment method, attach the recalculated Federal Schedule A and check the appropriate boxes.
- Using the wrong paper date format. Enter dates on lines 6 and 17 in MMDDYYYY format.
Questions people ask
What penalty rate applies?
The penalty rate is 8% per year for days in 2025 and 2026. For line 19, multiply the underpayment on line 16 by the applicable annual rate and by the number of days on line 18 divided by 365.
Can an entity reduce or avoid the penalty?
The annualized income or adjusted seasonal installment method may reduce or eliminate the penalty. Recalculate Federal Schedule A using Nebraska amounts, attach it, check the appropriate boxes, and enter the corresponding installment amounts on line 7.
What counts as a large corporation?
A corporation other than an S corporation is a large corporation if it, or its predecessor, had federal taxable income of at least $1 million in any of the three immediately preceding tax years. This test disregards net operating loss and capital loss carrybacks and carryovers. A large corporation may use prior-year tax only for its first installment, and any resulting reduction must be recaptured in the second installment.
How are payments applied when an earlier installment is unpaid?
Estimated tax payments are applied to underpayments in the order the installments were due, regardless of which installment the payment was intended to cover.