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NJ-2210 2021, Lecture notes of Tax Legislation and Financial Law

The University of Texas at AustinTax Legislation and Financial Law

NJ-2210. 2021. Underpayment of Estimated Tax by Individuals, Estates, or Trusts. Fill in the oval at line 51, Form NJ-1040, and enclose this form with your ...

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NJ-2210
2021
Underpayment of Estimated Tax
by Individuals, Estates, or Trusts
Fill in the oval at line 51, Form NJ-1040, and enclose this form with your return.
Name(s) as shown on Form NJ-1040 Social Security Number
Part I Figuring Your Underpayment
1. 2021 Tax (line 49, Form NJ-1040) ........................................................................................... 1.
2. Enter the total of lines 54, 55, 57, 58, 59, 60, 61, 62, and 63, Form NJ-1040 ....................... 2.
3. Subtract line 2 from line 1 (If less than $400, do not complete the rest of this form).............. 3.
4a.Multiplytheamountonline1by.80(80%)(Two-thirdsforqualifiedfarmers) ........................ 4a.
4b. Enter 2020 tax (From Form NJ-1040, line 50) ...................................................................... 4b.
5.
Payment Due Dates
(A)
April 15, 2021
(B)
June 15, 2021
(C)
Sept 15, 2021
(D)
Jan 18, 2022
5. Use the lesser amount from either line 4a or 4b and divide by
four. Enter the result in each column ........................................
6. Estimated tax paid and tax withheld per period (see instr.).
If each column on line 6 is greater than the corresponding
column on line 5, do not complete the rest of this form ............ 6.
7. Enter the overpayment (line 13) from the previous column.
(Complete lines 7 through 13 for one column before complet-
ing the next column.) ................................................................ 7.
8. Add line 6 and line 7 ................................................................. 8.
9. Enter the total underpayment (add line 11 and line 12) from
the previous column ................................................................. 9.
10. Subtract line 9 from line 8. If zero or less, enter zero ............... 10.
11. Remaining underpayment from previous period. If line 10 is
zero, subtract line 8 from line 9. Otherwise enter zero ............. 11.
12. Underpayment (If line 5 is greater than line 10, subtract line
10 from line 5)........................................................................... 12.
13. Overpayment (If line 10 is greater than line 5, subtract line 5
from line 10).............................................................................. 13.
Part II Exceptions
(See instructions. Complete worksheets for exceptions 2, 3, and 4 and enclose calculations for each exception claimed.)
If you meet exception 1 at line 15, do not file this form.TheseamountswillbeverifiedbytheDivisionofTaxation.
14. Total amount paid and withheld from January 1 through
payment due date shown. (Do not include withholdings after
December 31, 2021.) (See instructions) ................................... 14.
April 15, 2021 June 15, 2021 Sept 15, 2021 Jan 18, 2022
15. Exception 1 – Enter 2020 tax (line 50) ..... $ 15.
25% of 2020 Tax 50% of 2020 Tax 75% of 2020 Tax 100% of 2020
Tax
16. Exception 2 – Tax on 2020 gross income using 2021
exemptions and tax rates ......................................................... 16.
25% of Tax 50% of Tax 75% of Tax 100% of Tax
17. Exception 3 – Tax on annualized 2021 income ........................ 17.
20% of Tax 40% of Tax 60% of Tax
18. Exception 4 – Tax on 2021 income over 3, 5, and 8-month
periods ..................................................................................... 18.
90% of Tax 90% of Tax 90% of Tax
If the amount of any exception is equal to or less than the corresponding amount at line 14, interest will not be charged for that period
19. Total Interest (Include this amount on line 51, Form NJ-1040) .............................................. $
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NJ-

Underpayment of Estimated Tax

by Individuals, Estates, or Trusts

Fill in the oval at line 51, Form NJ-1040, and enclose this form with your return.

Name(s) as shown on Form NJ-1040 Social Security Number

Part I Figuring Your Underpayment

  1. 2021 Tax (line 49, Form NJ-1040)........................................................................................... 1.
  2. Enter the total of lines 54, 55, 57, 58, 59, 60, 61, 62, and 63, Form NJ-1040 ....................... 2.
  3. Subtract line 2 from line 1 (If less than $400, do not complete the rest of this form).............. 3.

4a. Multiply the amount on line 1 by .80 (80%) (Two-thirds for qualified farmers) ........................ 4a.

4b. Enter 2020 tax ( From Form NJ-1040, line 50 ) ...................................................................... 4b.

Payment Due Dates (A) April 15, 2021

(B) June 15, 2021

(C) Sept 15, 2021

(D) Jan 18, 2022

  1. Use the lesser amount from either line 4a or 4b and divide by four. Enter the result in each column ........................................
  2. Estimated tax paid and tax withheld per period (see instr.). If each column on line 6 is greater than the corresponding column on line 5, do not complete the rest of this form ............ 6.
  3. Enter the overpayment (line 13) from the previous column. (Complete lines 7 through 13 for one column before complet- ing the next column.) ................................................................ 7.
  4. Add line 6 and line 7 ................................................................. 8.
  5. Enter the total underpayment (add line 11 and line 12) from the previous column ................................................................. 9.
  6. Subtract line 9 from line 8. If zero or less, enter zero ............... 10.
  7. Remaining underpayment from previous period. If line 10 is zero, subtract line 8 from line 9. Otherwise enter zero ............. 11.
  8. Underpayment (If line 5 is greater than line 10, subtract line 10 from line 5)........................................................................... 12.
  9. Overpayment (If line 10 is greater than line 5, subtract line 5 from line 10).............................................................................. 13.

Part II Exceptions (See instructions. Complete worksheets for exceptions 2, 3, and 4 and enclose calculations for each exception claimed.) If you meet exception 1 at line 15, do not file this form. These amounts will be verified by the Division of Taxation.

  1. Total amount paid and withheld from January 1 through payment due date shown. (Do not include withholdings after December 31, 2021.) (See instructions) ................................... 14.

April 15, 2021 June 15, 2021 Sept 15, 2021 Jan 18, 2022

  1. Exception 1 – Enter 2020 tax (line 50) ..... $ 15.

25% of 2020 Tax 50% of 2020 Tax 75% of 2020 Tax 100% of 2020 Tax

  1. Exception 2 – Tax on 2020 gross income using 2021 exemptions and tax rates ......................................................... 16.

25% of Tax 50% of Tax 75% of Tax 100% of Tax

  1. Exception 3 – Tax on annualized 2021 income ........................ 17.

20% of Tax 40% of Tax 60% of Tax

  1. Exception 4 – Tax on 2021 income over 3, 5, and 8-month periods ..................................................................................... 18.

90% of Tax 90% of Tax 90% of Tax

If the amount of any exception is equal to or less than the corresponding amount at line 14, interest will not be charged for that period

  1. Total Interest (Include this amount on line 51, Form NJ-1040) .............................................. $

NJ-2210 2021

Worksheets

Exception II Tax on 2020 gross income using 2021 exemptions and tax rates

  1. Enter 2020 NJ Gross Income (line 29, 2020 NJ-1040)..................................................................... 1.
  2. Enter 2021 Total Exemptions (line 30, 2021 NJ-1040) ..................................................................... 2.
  3. Subtract line 2 from line 1 ................................................................................................................. 3.
  4. Calculate Tax on line 3 (2021 tax rates) ........................................................................................... 4.
  5. Enter Credit for Income Taxes Paid to Other Jurisdictions (line 43, 2021 NJ-1040) ........................ 5.
  6. Subtract line 5 from line 4. Enter the applicable percentage of this amount on line 16, Part II of this form ............................................................................................................................. 6.

Exception III Tax on 2021 Annualized Income (attach calculations) Estates and trusts, do not use the period ending dates shown, instead use the following ending dates: 2/28/21, 4/30/21, and 7/31/21. Also, estates and trusts cannot use the annualization amounts shown on line 2 and must use 6, 3, and 1.7143, respectively.

  1. Enter the portion of NJ Gross Income (line 29, NJ-1040) that is applicable to each period shown .................................................................................... 1.

1/1/21 – 3/31/21 1/1/21 – 5/31/21 1/1/21 – 8/31/

  1. Annualization amounts .................................................................................. 2. 4 2.4^ 1.
  2. Annualized Income (Multiply line 1 by line 2) ................................................ 3.
  3. Enter Total Exemptions (line 30, NJ-1040) .................................................... 4.
  4. Subtract line 4 from line 3 .............................................................................. 5.
  5. Calculate tax on line 5 ................................................................................... 6.
  6. Enter the portion of the Credit for Income Taxes Paid to Other Jurisdictions (line 43, NJ-1040) that is applicable to each period ...................................... 7.
  7. Subtract line 7 from line 6. Enter the applicable percentage of this amount on line 17, Part II of this form......................................................................... 8.

EXCEPTION IV Tax on Actual 2021 Taxable Income over 3, 5, and 8-month periods (attach calculations)

  1. Enter the actual amount of NJ Taxable Income (line 41, NJ-1040) that is applicable to each period shown .................................................................... 1.

1/1/21 – 3/31/21 1/1/21 – 5/31/21 1/1/21 – 8/31/

  1. Calculate tax on line 1 .................................................................................... 2.
  2. Enter the portion of the Credit for Income Taxes Paid to Other Jurisdictions (line 43, NJ-1040) that is applicable to each period shown. ........................... 3.
  3. Subtract line 3 from line 2. Enter 90% of this amount on line 18, Part II of this form .......................................................................................................... 4.

Calculating the Interest

Use the table in Option 1 to calculate interest on the amount of the underpayment from page 1, NJ-2210. If your

estimated tax payments for Tax Year 2021 were not paid timely, interest must be calculated based on the Interest Rate

Schedule in Option 2.

OPTION 1

Q U A R T E R A B C D E F G PERIOD Amount Due (Line 5, NJ-2210)

Balance Due Previous Qtr. (Col. E)

Total Due (Col. A + B)

Total Paid (Line 6, NJ-2210)

Balance (Col. C – D)

Multiplier Interest (Col. E x F)

Total Interest

Column A Enter the amount due per quarter (line 5, NJ-2210).

Column B Enter the balance due (column E) from the previous quarter.

Column C Enter the total of column A plus column B.

If column B is negative, subtract column B from column A.

Column D Enter the total estimated tax paid and withheld (line 6, NJ-2210).

Column E Subtract column D from column C.

Column F The multiplier is based on the interest rates in effect during each quarter.

Column G Multiply column E by the multiplier in column F. If column E is negative, enter zero in column G.

TOTAL INTEREST Add the interest for each quarter and enter this amount in the block marked Total Interest on

line 19, NJ-2210 and on line 51, NJ-1040.

OPTION 2

Calculate the interest on the amount of the underpayment on line 12 from the date the underpayment was incurred to

the date the underpayment was satisfied or the original due date of the final tax return (Form NJ-1040), whichever is

earlier. Interest is assessed at the annual rate of 3% above the average predominant prime rate and is imposed each

month or fraction thereof the underpayment exists. The interest rate will be reviewed quarterly and will only change if

there has been a cumulative change of more than 1% since it was last set.

INTEREST RATE SCHEDULE

PERIOD INTEREST RATE