Form 2210 calculator for taxpayers who are liable to pay penalty for underpayment of estimated tax is based on the section §6654 of the Internal Revenue Code that is titled “Failure By Individual To Pay Estimated Income Tax.” This provision of law  lays down the law for imposition of penalty for the failure to pay proper estimated tax by a taxpayer. Have you read Penalty for Underpayment of Estimated Tax Simplified and 7 faqs on penalty for underpayment of estimated tax , before you attempt to use the calculator given below for better understanding.

Special Rules for Farmers,Fishermen & High Income Group

There are special rules for farmers and fishermen, certain household employers and certain higher income taxpayers. For more information, refer to Publication 505, Tax Withholding and Estimated Tax. You can see the  Form 2210.pdf, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to examine if you owe a penalty for underpaying your estimated tax.Important Points to Note 

The law allows IRS to waive the penalty if:

  1. The reason for default of  payment of estimated tax was on account of of a casualty event, disaster, or other unusual circumstance and or
  2. You retired (after reaching age 62) or became disabled during the tax year or in the preceding tax year for which you should have made estimated payments, and the underpayment was due to reasonable cause and not willful neglect.

Calculate Estimated Tax Penalty

The aforesaid estimated tax underpayment calculator is based on the latest instruction to file Form 2210.

Prashant Thakur

Prashant Thakur

Prashant Thakur is a practicing tax advisor on Income Tax Act of India . He also blogs on US taxation law (IRC) . He has more than 30 years of experience in dealing with tax issues ( 20 years on the other side of the table i.e for Income Tax department) . He has written three books - Tax Evasion Through Shares( 2008 & 2012) , Taxing Question Simple Answer (2013) and Crypto Taxation in USA (2022) . Other than taxation , he has great interest in cloud technology, WordPress and is found of small tech company .
Prashant Thakur
Prashant Thakur
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While the information on this site  - Internal Revenue Code Simplified-is about legal issues, it is not legal advice or legal representation. Because of the rapidly changing nature of the law and our reliance upon outside sources, we make no warranty or guarantee of the accuracy or reliability of information contained herein.

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