Penalty for Underpayment of Estimated Tax

Step Subject
Instruction Year

If you are required to make estimated tax payments but fail to make payments, you may be subject to a penalty in addition to any tax you may owe. The penalty is determined in the same way as for federal purposes. Consequently, you must include your Iowa income, lump-sum, and alternative minimum taxes when calculating the penalty for underpayment of estimated tax.

If you are subject to this penalty, complete IA 2210, IA 2210F (for farmers and commercial fishers), or IA 2210S and enter the penalty on this line. Include a copy of the IA 2210, IA 2210F, or IA 2210S with your tax return. If you elect to use the annualized method of computing the penalty, include a copy of your IA 2210 Schedule AI (Annualized Income Installment Method) with your tax return.

If you are due a refund, subtract the penalty amount from the overpayment you show on line 68 or line 69.

Individuals who expect to owe Iowa tax of $200 or more for the tax year from income not subject to Iowa withholding tax must make quarterly estimated tax payments. These payments may be made online, in person, or by mail. To make a payment online, simply select Individual Income Estimate Tax and the payment option that works best for you using EasyPay Iowa.


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