Form 2210: underpayment of estimated tax by individuals, estates and trusts
Form 2210 is the IRS form individuals, estates and trusts use to see whether they owe a penalty for underpaying estimated tax and to figure it. For 2025, payments covering the smaller of 90% of 2025 tax or 100% of 2024 tax (110% above $150,000 AGI) avoid it.
“Use Form 2210 to see if you owe a penalty for underpaying your estimated tax and, if you do, to figure the amount of the penalty.” IRS, About Form 2210
Who has to file Form 2210?
Form 2210 has to be completed and filed in full only when one of the Part II boxes B, C or D applies: a request to waive part of the penalty, use of the annualized income installment method, or treating withholding as paid on the dates it was actually withheld. Box A (waiver of the whole penalty) and box E (joint return in only one of the two years) require page 1 alone. Otherwise, per the 2025 instructions, the IRS figures the penalty and bills the client.
No penalty applies when 2025 tax minus withholding is under $1,000, or when the client had no 2024 tax liability, was a U.S. citizen or resident all year, and had a 12-month 2024 return. Farmers and fishers who meet the two-thirds gross income test and pay in full by March 2, 2026 owe nothing; otherwise they use Form 2210-F. The IRS can waive the penalty for a casualty, disaster or unusual circumstance, or for retirement after 62 or disability with reasonable cause.
What are the Form 2210 safe harbors?
The Form 2210 safe harbors protect a taxpayer whose withholding and timely estimated payments for 2025 equal at least the smaller of 90% of 2025 tax or 100% of 2024 tax, according to the 2025 instructions. The 100% becomes 110% when 2024 AGI was more than $150,000 ($75,000 if married filing separately in 2025). The 2024 return must cover a full 12 months, and farmers and fishers substitute 66 2/3% for 90%. Part I of Form 2210 runs this test: line 9 is the required annual payment, the smaller of line 5 (90% of current tax) and line 8 (prior-year tax, at 110% if it applies).
If line 6 withholding alone is at least line 9, there is no penalty. Line 8 is skipped when no 2024 return was filed or the 2024 tax year was shorter than 12 months, and line 9 then equals line 5.
| Source | What it gives | Form 2210 |
|---|---|---|
| 2025 Form 1040 22 | Tax after credits | 1 |
| Schedule 2 lines 4, 11, 12 and others listed | Self-employment tax, Additional Medicare Tax, NIIT | 2 |
| Refundable credits (EIC, ACTC, PTC and others) | Credits treated as payments | 3 |
| Form 1040 25d, Schedule 3 11 | Tax withheld | 6 |
| 2024 return tax and 2024 AGI | Prior-year safe harbor, 110% if AGI over $150,000 | 8 |
| 2024 overpayment applied to 2025 | Payment, generally treated as made April 15, 2025 | 11 column (a) |
| Form 1040-ES payment records | Estimated payments by date | 11 columns (a) to (d) |
How do the regular and annualized methods on Form 2210 work?
The 2025 Form 2210 has two ways to figure installments. Under the regular method, line 10 is 25% of line 9 for each due date (April 15, June 15 and September 15, 2025, and January 15, 2026). Withholding counts as paid in four equal amounts unless box D is checked. The penalty comes from the Part III, Section B worksheet in the instructions, at 7% (0.07) for all four 2025 rate periods.
Schedule AI, the annualized income installment method, suits clients whose income came late in the year. Income through March 31, May 31, August 31 and December 31 is annualized using factors of 4, 2.4, 1.5 and 1. The cumulative amount due by each date is 22.5%, 45%, 67.5% or 90% of the annualized tax, less installments already required, and never more than the regular 25% installment plus any unused amount from earlier periods. Using it means checking box C and filing.
The short method is gone: the 2020 Form 2210 was the last version that had it.
What does a Form 2210 calculation look like?
For example, Sam is single. His 2025 tax on line 4 is $40,000 and his employer withheld $18,000, so line 7 ($22,000) is over $1,000 and the exceptions don't apply. His 2024 tax was $30,000 on AGI of $160,000, so the prior-year safe harbor is 110%, or $33,000. He made no estimated payments for 2025 and pays the full balance with his return on April 15, 2026.
| Step | Form 2210 | Amount |
|---|---|---|
| Current year tax | 4 | $40,000 |
| 90% of current year tax | 5 | $36,000 |
| Withholding | 6 | $18,000 |
| 110% of 2024 tax | 8 | $33,000 |
| Required annual payment, smaller of lines 5 and 8 | 9 | $33,000 |
| Required installment, 25% of line 9 | 10 (a) to (d) | $8,250 each |
| Withholding treated as paid evenly | 11 (a) to (d) | $4,500 each |
| Underpayment by column | 17 (a) to (d) | $3,750; $7,500; $8,250; $8,250 |
| Penalty, 7% a year for the days each amount stayed unpaid | 19 | $698 |
Each payment applies first to the earliest unpaid installment. The June withholding clears April's $3,750 shortfall after 61 days, which is why column (b) shows $7,500 rather than $3,750. No Part II box applies, so Sam can let the IRS bill him or report $698 on Form 1040 line 38 without attaching the form.
What do reviewers check on Form 2210?
A reviewer checking Form 2210 confirms six items, each tied to the 2025 Instructions for Form 2210 or the form itself. Start with the 2024 return: line 8 depends on 2024 tax, 2024 AGI and whether the filing status changed, and an error there moves the safe harbor for every installment. Then compare the dates on line 11 to the client's actual payment records, because the penalty runs by the day. June 15, 2025 fell on a Sunday, so a payment made Monday, June 16 counts as made on the due date.
NIIT from Form 8960 is part of line 2, and Schedule AI line 9 picks up the QBI deduction for each period, so both have to be final before the penalty is.
Every line checked against the documents the client sent
Filed reads the client's 2024 return, W-2s, 1099 withholding and estimated payment records, then checks every line of Form 2210 against them. Anything that doesn't tie comes back as a review item with a citation to the source.
Book a demoForm 2210 line 8 shows $41,200, equal to 2024 total tax, but 2024 AGI was $186,500. Confirm whether line 8 should be $45,320 (110%) and whether the required installments on line 10 change.
Common questions
What is the 110% rule for estimated tax?
The 110% rule raises the prior-year safe harbor from 100% to 110% of last year's tax when last year's AGI was more than $150,000, or $75,000 for married filing separately. For 2025 returns, a client with 2024 AGI above that amount has to pay in 110% of 2024 tax, or 90% of 2025 tax if smaller, to avoid the penalty.
Does the IRS calculate the underpayment penalty for me?
The IRS calculates the underpayment penalty and sends a bill when none of Part II boxes B, C or D applies, and the instructions say not to file Form 2210 in that case. If the 2025 return is filed by April 15, 2026, no interest is charged on the penalty when it is paid by the date on the bill.
Is there still a short method on Form 2210?
There is no short method on the 2025 Form 2210. The 2020 form was the last to include it. The 2025 instructions describe only the regular method, with the Part III penalty worksheet, and the annualized income installment method on Schedule AI. Software or worksheets that still offer a short method are using an outdated form.