Colorado Estimated Tax -- Individual Underpayment
Extracted from PDF file 2019-colorado-form-dr-0204.pdf, last modified August 2013
Estimated Tax -- Individual Underpayment*DO=NOT=SEND* DR 0204 (12/23/19) COLORADO DEPARTMENT OF REVENUE Denver CO 80261-0005 Colorado.gov/Tax Tax Year Ending Computation of Penalty Due Based on Underpayment of Colorado Individual Estimated Tax Instructions for DR 0204 Calculation of underestimated penalty (UEP) can be difficult. We strongly recommend filing electronically or consulting a tax professional to reduce the likelihood of errors. FYI Income 51, located at Colorado.gov/Tax, contains additional information regarding UEP including examples, please read this FYI for more information. Part 1: Generally you are subject to an estimated tax penalty if your current year estimated tax payments are not paid in a timely manner. The estimated tax penalty will not be assessed if either of the exceptions are met. Part 2: The required annual amount to be paid is the lesser of: • 70% of actual current year net Colorado tax liability, or • 100% of preceding year’s net Colorado tax liability (This amount only applies if the preceding year was a 12-month tax year, and the individual filed a Colorado return, and the federal adjusted gross income for the preceding year was $150,000 or less, or $75,000 or less if married filing separate.), or • 110% of preceding year’s net Colorado tax liability. (This amount only applies if the preceding year was a 12-month tax year and the individual filed a Colorado return.) Part 3: If no exception applies to you, compute your penalty on lines 7 through 19 of DR 0204. Complete each column before going on to the next column. Allocate estimated tax payment on line 8. The amount entered on line 10 is the net overpayment from the preceding period. On line 17, if the payment was made prior to January 1 enter “0.” If the tax return is filed and any tax due is paid by January 31 no penalty will be computed in column four. Estimated tax payments from a farmer or fisherman are due in a single payment by January 15 and only column four is used to compute the penalty. Part 4: Taxpayers who do not receive income evenly during the year may elect to use the annualized income installment method to compute their estimated tax payments if they elect annualized installments for the payment of their federal income tax. Complete the annualized installment method schedule to compute the amounts to enter on line 7. See FYI Income 51, available at Colorado.gov/Tax, for additional information regarding the estimated tax penalty. *190204==19999* DR 0204 (12/23/19) COLORADO DEPARTMENT OF REVENUE Denver CO 80261-0005 Colorado.gov/Tax Taxpayer’s Last Name First Name Middle Initial SSN or ITIN Part 1 — Exceptions Exception Number 1 If at least two-thirds of your gross income for the current or prior year is from farming or fishing and you file your current year return and you pay the full amount of tax due on or before March 1, you are not subject to the estimated tax penalty. If you meet this criteria but do not file and pay the full amount of tax due on or before March 1, check the box here and complete the remainder of the form. Exception Number 2 1. Enter your current year tax liability (including alternative minimum tax and any credit recapture) after reduction for all credits other than withholding tax and estimated tax payments. $ 2. (a) Statutory exemption $ 1,000.00 (b) Current year Colorado income tax withheld from wages and/or nonresident real estate transactions $ (c) Total of lines 2(a) and 2(b) $ 3. Subtract line 2(c) from line 1. If 2(c) is larger, enter zero and no penalty is due. Part 2 — Required Annual Payment 4. (a) Enter your current year tax liability (including alternative minimum tax and any credit recapture) after reduction for all credits other than withholding tax and estimated tax payments. (b) Enter 70% of the amount on line 4(a). If you checked the box for exception number 1 above only enter 50% of the amount on line 4(a). 5. (a) Enter your previous year tax liability (including alternative minimum tax and any credit recapture) after reduction for all credits other than withholding tax and estimated tax payments. (b) If your previous year federal adjusted gross income is greater than $150,000 (greater than $75,000 if married filing separate), enter 10% of line 5(a). If not, enter 0. If you checked the box for exception number 1 above enter 0. (c) Enter total of lines 5(a) and 5(b) $ $ $ $ $ $ 6. Required payment. Enter the smaller of lines 4(b) or 5(c) Part 3 — Penalty Computation 7. Divide the amount on line 6 April 15 by four. Enter the result in the appropriate column. If you checked the box for exception number 1 above, enter $0 in the first three columns and the amount on line 6 in the final column (January 15). $ $ Payment Due Dates June 15 Sept 15 $ January 15 $ $ 8. Amounts paid in estimated tax 9. Amount of income tax withheld from wages and/or nonresident real estate transactions 10. Overpayment (on line 12) from previous period $ $ $ $ $ $ $ $ $ $ $ 11. Total of lines 8, 9, and 10 $ $ $ $ *190204==29999* Taxpayer’s Last Name DR 0204 (12/23/19) COLORADO DEPARTMENT OF REVENUE Denver CO 80261-0005 Colorado.gov/Tax First Name Middle Initial SSN or ITIN 12. Underpayment (subtract line 11 from line 7) or <overpayment> (subtract line 7 from line 11) $ $ $ 13. Date of payment or December 31, whichever is earlier 14. Number of days from due date of payment to date on line 13 15. Underpayment on line 12 multiplied by 9% multiplied by number of days on line 14 divided by 365 $ $ $ 16. Date of payment or April 15, whichever is earlier 17. Number of days from December 31, or due date of payment, whichever is later, to date on line 16 18. Underpayment on line 12 multiplied by 9% multiplied by number of days on line 17 divided by 365 $ $ $ 19. Total penalty. Add all amounts on lines 15 and 18. Include this amount as estimated tax penalty on line 41 of form DR 0104 Part 4 — Annualized Installment Method Schedule 20. Ending date of annualization period 21. Colorado taxable income computed $ through the date on line 20 22. Annualization factor 23. Annualized taxable income $ line 21 multiplied by line 22 24. Annualized Colorado tax $ line 23 multiplied by 4.5% 25. Applicable percentage 26. Installment payment due. Line 24 multiplied by line 25, subtract amounts entered on line 26 in earlier quarters. Enter here and $ on line 7. March 31 4 May 31 $ 2.4 $ 17.5% 35% $ $ $ August 31 $ 1.5 $ $ $ Dec 31 $ 1 $ $ 52.5% $ $ 70% $
Form DR 0204
More about the Colorado Form DR 0204 Individual Income Tax Estimated TY 2019
Generally you are subject to an estimated tax penalty if your current year estimated tax payments are not paid in a timely manner. The estimated tax penalty will not be assessed if either of the exceptions are met.
We last updated the Estimated Tax -- Individual Underpayment in February 2020, so this is the latest version of Form DR 0204, fully updated for tax year 2019. You can download or print current or past-year PDFs of Form DR 0204 directly from TaxFormFinder. You can print other Colorado tax forms here.
Other Colorado Individual Income Tax Forms:
|Form Code||Form Name|
|Form 104||Colorado Income Tax Return|
|Form DR 0900||Payment Voucher for Individuals|
|Form 104PN||Part-Year/Nonresident Computation Form|
|Form DR 1778||E-Filer Attachment Form|
|Form 104CR||Tax Credits for Individuals|
Colorado usually releases forms for the current tax year between January and April. We last updated Colorado Form DR 0204 from the Department of Revenue in February 2020.
Form DR 0204 is a Colorado Individual Income Tax form. While most taxpayers have income taxes automatically withheld every pay period by their employer, taxpayers who earn money that is not subject to withholding (such as self employed income, investment returns, etc) are often required to make estimated tax payments on a quarterly basis. Failure to make correct estimated payments can result in interest or penalties.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
Historical Past-Year Versions of Colorado Form DR 0204
We have a total of seven past-year versions of Form DR 0204 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
While we do our best to keep our list of Colorado Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.