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

Alabama individuals who have underpaid their estimated tax owed use form 2210AL to calculate the penalty owed. This document can be obtained from the website maintained by the Alabama Department of Revenue.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 1: At the top of the form, enter your name and identifying number.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 2: Part I concerns required annual payments. On line 1, enter your net tax due after credits after credits as documented on form 40 or 40NR.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 3: Multiply line 1 by 90%. Enter the resulting product on line 2.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 4: Enter withholding taxes on line 3.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 5: Subtract line 3 from line 1 and enter the resulting difference on line 4. If less than $500, you do not owe this penalty and do not need to file this form.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 6: On line 5, enter the maximum required annual payment as based on the prior year's tax.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 7: Enter the smaller of line 2 or line 5 on line 6. If line 6 is greater than line 3, you do not owe a penalty and do not need to file this form unless statement E in Part II applies.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 8: Part II concerns your reasons for filing this form. Check all applicable statements. If none apply, you do not need to file this form.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 9: Part III contains the short method for calculating your payment owed. You may use this method if you made no estimated tax payments or you paid the same amount of estimated tax on each of the four payment due dates.

Alabama Underpayment Of Estimated Tax By Individuals 2210AL Step 10: Part IV contains the long method for calculating your payment owed. You may also choose to use the Annualized Income Installment Method as outlined in Schedule A1 at the bottom of the page.