INSTRUCTIONS: ALABAMA UNDERPAYMENT OF ESTIMATED TAX BY INDIVIDUALS (Form 2210AL)

Those who have failed to pay or underpaid their Alabama state income tax liabilities should file a form 2210AL with their 40 or 40NR tax returns. This documents your penalties owed. The form can be found on the website of the Alabama Department of Revenue.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 1: At the top of the form, enter your name as it is recorded on your tax return and your identifying number.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 2: Part I calculates your annual payment for those subject to the underestimation penalty. Enter your net tax due after credits on line 1.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 3: Multiply line 1 by .9. Enter the resulting product on line 2.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 4: Enter your withholding taxes on line 3. Subtract line 3 from line 1. If the resulting difference is less than $500, you do not need to file this form. Otherwise, enter the difference on line 4.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 5: On line 5, enter your maximum required annual payment based on the previous year's tax. Enter the smaller of line 2 or line 5 on line 6.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 6: If line 6 is greater than line 3, do not complete and file this form unless box E in Part II applies.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 7: Check all applicable reasons for filing listed in Part II.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 8: Part III can be used as a short method calculation of your penalty owed if you made no estimated tax payments or paid the same amount of estimated tax on all four of the prepayment due dates.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 9: Part IV contains two ways to calculate your underpayment penalty owed. The table at the top provides instructions for doing so using the regular method. The table at the bottom provides instructions for using the annualized income installment method. Further instructions for completing either Part III or Part IV can be found in the separate, unnumbered instructions booklet.