Hawaii Underpayment of Estimated Tax by Individuals, Estates, and Trusts
Extracted from PDF file 2018-hawaii-form-n-210.pdf, last modified October 2009
Underpayment of Estimated Tax by Individuals, Estates, and TrustsClear Form INSTRUCTION FORM N-210 (REV. 2018) STATE OF HAWAII — DEPARTMENT OF TAXATION INSTRUCTIONS FOR FORM N-210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2018 (NOTE: References to “married” and “spouse” are also references to “in a civil union” and “civil union partner,” respectively.) GENERAL INSTRUCTIONS • Purpose of Form Use Form N-210 to see if you owe a penalty for underpaying your estimated tax and, if you do, to figure the amount of the penalty. This form is used by individuals and fiduciaries of estates and trusts. • Other Methods of Figuring the Penalty We realize that there are different ways to figure the correct penalty. You do not have to use the method used on Form N-210 as long as you enter the correct penalty amount on the estimated tax penalty line of your return. However, if you are required to file Form N-210 because one or more of the boxes in Part I applies, you must complete lines 1-17 and enter the penalty on line 21. Who Must Pay the Underpayment Penalty In general, you may owe the penalty for 2018 if the total of your withholding and timely estimated tax payments did not equal at least the smaller of: 1. 60% of your 2018 tax, or 2. 100% of the tax shown on your 2017 tax return. Penalty figured separately for each required payment. The penalty is figured separately for each installment due date. Therefore, you may owe the penalty for an earlier due date even if you paid enough tax later to make up the underpayment. This is true even if you are due a refund when you file your tax return. However, you may be able to reduce or eliminate the penalty by using the annualized income installment method. For details, see the Schedule A instructions later. Exceptions to the Penalty You will not have to pay the penalty or file this form if either 1 or 2 applies: 1. You had no tax liability for 2017, you were a U.S. citizen or resident of Hawaii for the entire year, and your 2017 Hawaii income tax return was (or would have been had you been required to file) for a full 12 months. You had no tax liability for 2017 if your total tax was zero or you were not required to file an income tax return. 2. The total tax shown on your 2018 return minus the amount of tax you paid through withholding and applicable tax credits is less than $500. To determine whether the total tax is less than $500, complete lines 1-5. If you meet the exception under number 1, attach a statement that under the penalties set forth in section 231-36, HRS, you were not required to file a Hawaii income tax return for 2017 because your 2017 gross income was less than your filing threshold and the Hawaii income tax return would have been for a full 12 months had you been required to file a 2017 income tax return. Attach this statement directly behind Form N-11, N-15, or N-40. If you filed Schedule CR, attach the statement directly behind Schedule CR. Estates and trusts. No penalty applies to either of the following: A decedent’s estate for any tax year ending before the date that is two years after the decedent’s death. A trust that was treated as owned by the decedent if the trust will receive the residue of the decedent’s estate under the will (or if no will is admitted to probate, the trust primarily responsible for paying debts, taxes, and expenses of administration) for any tax year ending before the date that is two years after the decedent’s death. Special Rules for Farmers and Fishermen If you meet both tests 1 and 2 below, you do not owe a penalty for underpaying your estimated tax. 1. Your gross income from farming or fishing is at least two-thirds of your annual gross income from all sources for 2017 or 2018. 2. You filed your Hawaii return and paid the entire tax due by March 1, 2019. Note: If you receive a penalty notice, do not ignore it, even if you think it is in error. You may get a penalty notice even though you filed your return on time, attached Form N-210, and met the gross income from farming or fishing requirement. If you receive a penalty notice for underpaying estimated tax and you think it is in error, write to the address on the notice and explain why you think the notice is in error. Include a computation showing that you met the gross income from farming or fishing requirement. See federal Publication 505, Tax Withholding and Estimated Tax, for the definition of gross income from farming and fishing. Waiver of Penalty If you have an underpayment on line 16, all or part of the penalty for that underpayment will be waived if the Department determines that: • In 2017 or 2018, you retired after reaching age 62 or became disabled, and your underpayment was due to reasonable cause (and not willful neglect), or • The underpayment was due to a casualty, disaster, or other unusual circumstance, and it would be inequitable to impose the penalty. To request any of the above waivers, do the following: a. Check the box in Part I, line a. b. Complete Form N-210 through line 20 without regard to the waiver. Enter the amount you want waived in parentheses on the dotted line next to line 21. Subtract this amount from the total penalty you figured without regard to the waiver, and enter the result on line 21. c. Attach Form N-210 and a statement to your return explaining the reasons you were unable to meet the estimated tax requirements and the time period for which you are requesting a waiver. d. If you are requesting a waiver due to retirement or disability, attach documentation that shows your retirement date (and your age on that date) or the date you became disabled. e. If you are requesting a waiver due to a casualty, disaster, or other unusual circumstance, attach documentation such as copies of police and insurance company reports. The Department will review the information you provide and decide whether to grant your request for a waiver. Attach this form to your return. SPECIFIC INSTRUCTIONS Part II All filers must complete this part. Line 1 — Enter your tax liability before credits. Enter the amount from Form N-11, line 27; Form N-15, line 44; or Form N-40, Schedule G, line 1; whichever applies. Line 2 — Enter the total amount of all the tax credits, nonrefundable and refundable, claimed on your tax return. Do not include on this line, payments made for: • • Hawaii income tax withheld Tax withheld on Individual Housing Account (IHA) distributions • Estimated taxes paid • Amount of estimated tax payments applied from the 2017 return to the 2018 return • Amounts paid with extensions • Credit for taxes withheld on the sale of Hawaii real property by a nonresident • Amount withheld by an S corporation for a nonresident shareholder Line 4 — Include on this line Hawaii income tax withheld from wages, IHA distributions, and sales of Hawaii real property by a nonresident; and amounts withheld by an S corporation for a nonresident shareholder. Line 5 — If this line is less than $500, you do not have to complete the rest of this form. Line 7—Tax Amount from your 2017 Income Tax Return.—Enter 100% of your 2017 tax. Figure your 2017 tax using the taxes and credits shown on your 2017 tax return. Use the same type of taxes and credits shown on lines 1 and 2 of Form N-210. If you are filing a joint return for 2018, but you did not file a joint return for 2017, add your 2017 tax to your spouse’s 2017 tax and enter the total on line 7. If you filed a joint return for 2017 but you are not filing a joint return for 2018, see federal Publication 505 to figure your share of the 2017 tax to enter on line 7. If you did not file a return for 2017, or if your 2017 tax year was less than 12 months, do not complete line 7. Instead, enter the amount from line 6 on line 8. However, see the Exceptions to the Penalty on this page. Line 8 — Compare the amounts on lines 6 and 7. Enter the smaller of the two amounts on line 8. If the amount on line 4 is equal to or more than the amount on line 8, you will not have to complete or attach Form N-210 unless the Caution on page 2 applies to you. Instructions for Form N-210 (Rev. 2018) Caution: If the amount you entered on line 8 is your prior year tax (from line 7), and you filed or are filing a joint return for either 2017 or 2018 but not for both years, you must check Box d in Part I, and complete and attach Form N-210 to your return, even if you do not owe a penalty. Part III - Figure Your Underpayment Nonresident Alien If you are a “Nonresident Alien” (see definition in Form N-15 Instructions) and did not receive wages as an employee subject to Hawaii income tax withholding, the instructions for figuring your underpayment are modified as follows: 1. Skip column (a). 2. On line 9, column (b), enter one-half of the amount on line 8 of Part II (unless you are using the annualized income installment method). 3. On line 10, column (b), enter the total tax payments made through June 20, 2018, for the 2018 tax year. 4. Skip all lines in column (b) that are shaded in column (a). Farmers and Fishermen The instructions for figuring your underpayment are modified as follows: 1. Skip columns (a), (b), and (c). 2. On line 9, column (d), enter the full amount on line 8 of Part II. 3. On line 10, column (d), enter the total tax payments made through January 20, 2019, for the 2018 tax year. 4. Skip all lines in column (d) that are shaded in column (a). Figure Your Underpayment Line 9 — Enter on line 9, columns (a)-(d), the amount of your required installment for the due date shown in each column heading. For most taxpayers, this is one-fourth of the required annual payment shown on line 8 of Part II. However, it may be to your benefit to figure your required installments by using the annualized income installment method. For more details, see the instructions for Schedule A on this page. Line 10 — Enter the taxes withheld from wages, IHA distributions, and sales of Hawaii real property by a nonresident; estimated tax payments; and amounts withheld by an S corporation for a nonresident shareholder if the corporation’s payment is made within your tax year in the column for the period during which the payment is made. In column (a), enter the tax payments you made by April 20, 2018, for the 2018 tax year; in column (b), enter the payments you made after April 20 through June 20, 2018; in column (c), enter the payments you made after June 20 through September 20, 2018; and in column (d), enter the payments you made after September 20, 2018, through January 20, 2019. When figuring your payment dates and the amounts to enter on line 10 of each column, apply the following rules: 1. For withheld income tax on wages, you are considered to have paid one-fourth of these amounts on each payment due date unless you can show otherwise. If you treat withholding as paid for estimated tax purposes when it was actually withheld, you must check Box c in Part I and complete and attach Form N-210 to your return. 2. Include all estimated tax payments you made for each period. Include any overpayment from your 2017 tax return you elected to apply to your 2018 estimated tax. If your 2017 return was fully paid by the due date, treat the overpayment as a payment made on April 20, 2018. If you mail your estimated tax payments, use the date of the U.S. postmark as the date of payment. 3. If an overpayment is generated on your 2017 return from a payment made after the due date, treat the payment as made on the date of payment. For example, you paid $500 due on your 2017 return on July 1, 2018, and later amended the return and were due a $400 refund which you elected to have applied to your estimated taxes. The $400 overpayment would be treated as paid on July 1. 4. If you file your return and pay the tax due by January 31, 2019, include on line 10, column (d), the amount of tax you pay with your tax return. In this case, you will not owe a penalty for the payment due by January 20, 2019. 5. Reduce the amount of withholding on the disposition of Hawaii real property included on this line by any amount for which you have requested a refund on Form N-288C. 6. Any payments made on the next working day after the payment due date because of a Saturday, Sunday, or holiday, will be considered paid on the payment due date. If line 10 is equal to or more than line 9 for all payment periods, stop here. You do not have to complete the rest of the form. Line 16 — If line 16 is zero for all payment periods, you do not owe a penalty. But if you checked Box b, c, or d, in Part I, you must file Form N-210 with your return. If line 16 shows an underpayment for any payment period, see Waiver of Penalty on page 1. In certain circumstances, the Department will waive all or part of the underpayment penalty. Part IV — Figure the Penalty The underpayment penalty is computed on a monthly basis. This means the penalty is imposed on the amount of the underpayment of estimated tax at the rate of 2/3% (.00667) a month or fraction of a month. Use this part to figure the penalty for any underpayment to which none of the exceptions apply. If you made more than one payment for any payment period, attach your penalty computation for each payment. The penalty is applied to the number of months, or fraction of a month, that the installment was not paid. You figure the period of underpayment by counting the number of months after the due date of the installment to and including the date of payment or April 20, 2019, whichever is earlier. If you are a fiscal year taxpayer, use the 20th day of the 4th month following the close of your fiscal year instead of April 20, 2019. Line 19 — Count the number of months from the due date of the payment shown above the column to the date on line 18. A month, for the purposes of computing the penalty, is the period from the 21st day of the current calendar month through the 20th day of the following calendar month. Enter the number of months, rounding up any fractions of a month. A fraction of a month is counted as one month. For example, Mr. Aloha has an underpayment for the April 20th installment of $1,000. The June 20th installment requires a payment of $2,500. Page 2 On June 10th, Mr. Aloha pays $2,500 to cover the June 20th installment. However, $1,000 of this payment will be considered to be for the April 20th installment. The penalty for the April 20th installment is figured to June 10th (2 months). The amount of the payment to be applied to the June 20th installment will be the remaining $1,500. Please note that if Mr. Aloha does not make an additional payment by June 20th to cover the remaining $1,000 due for the June 20th installment, the underpayment penalty will be applied when it is subsequently paid. Payment of your entire 2018 estimated tax liability, or any balance due, by January 20, 2019, or filing of your 2018 income tax return and payment of the tax shown on the return by January 20, 2019, will not relieve you of the penalty if you did not pay the estimated income tax due earlier in your tax year. If you file your return and pay the tax due by January 31, 2019, you will have no penalty for the January installment, and the periods of underpayment for earlier installments will end on January 20, 2019. Reminder for farmers and fishermen: If your gross income from farming or fishing is at least two-thirds of your annual gross income from all sources for 2017 or 2018, and you file your return and pay the tax due by March 1, 2019, you will not have to pay the penalty or file this form. Schedule A—Required Installments Using the Annualized Income Installment Method If your income varied during the year because, for example, you operated your business on a seasonal basis, you may be able to lower or eliminate the amount of one or more required installments by using the annualized income installment method. Use Schedule A to figure the required installments to enter on Form N-210, Part III, line 9. If you use Schedule A for any payment due date, you must use it for all payment due dates. To use the annualized income installment method to figure the penalty, you must do all of the following: 1. Complete Schedule A. Enter the amounts from Schedule A, line 24, in each column of Form N-210, Part III, line 9. 2. Complete Part IV to figure the penalty. 3. Check Box b in Part I. 4. Attach Form N-210 to your return. Nonresident Alien If you did not receive wages as an employee subject to Hawaii income tax withholding, the instructions for Schedule A are modified as follows: 1. Skip column (a). 2. Beginning with column (b), enter on line 1 your income for the period that is effectively connected with a Hawaii trade or business. 3. Increase the amount on line 16 by the amount determined by multiplying your income for the period that is not effectively connected with a Hawaii trade or business by the following: • In column (b), 72%. • In column (c), 45%. • In column (d), 30%. 4. Enter on line 21, column (b), one-half of the amount from Form N-210, Part II, line 8. In Instructions for Form N-210 (Rev. 2018) columns (c) and (d), enter one-fourth of that amount. 5. Skip column (b) of lines 19 and 22. Annualized Income Installments To figure the amount of each required installment, Schedule A selects the smaller of the annualized income installment or the regular installment (increased by the amount saved by using the annualized income installment method in figuring any earlier installments). Line 1 — For each period (column), figure your total income minus your adjustments to income. Include your share of partnership or S corporation income or loss items for the period. If you are self-employed, be sure to take into account the deductible part of your selfemployment tax. For more information on how to figure this amount for each period, see federal Publication 505, chapter 4. Line 2 — Estates and trusts, do not use the amounts shown in columns (a)-(d). Instead, use 6, 3, 1.71429, and 1.09091, respectively, as the annualization amounts. Line 6 — If you itemized deductions, multiply line 4 of each column by line 5 and enter the result on line 6. But if line 3 is more than $166,800 ($83,400 if married filing separately), use the following worksheet to figure the amount to enter on line 6. 1. Enter the amount from Sch. A, line 4...................... 2. Enter the amount included on line 1 for medical and dental expenses, investment interest, casualty or theft losses, and gambling losses 3. Line 1 minus line 2............. 4. Enter the number from Sch. A, line 5...................... 5. Multiply line 1 by line 4....... Note: If line 3 is zero, your deduction is not limited. Stop here and enter the amount from line 5 on Sch. A, line 6. 6. Multiply line 3 by line 4....... 7. Multiply line 6 by .80........... 8. Enter the amount from Sch. A, line 3...................... 9. Enter $166,800 ($83,400 if married filing separately).... 10. Line 8 minus line 9............. Note: If line 10 is zero or less, your deduction is not limited. Stop here and enter the amount from line 5 on Sch. A, line 6. 11. Multiply line 10 by .03......... 12. Enter the smaller of line 7 or line 11............................ 13. Line 5 minus line 12. Enter the result here and on Sch. A, line 6.......... Line 7 — Nonresidents and part-year residents, enter the amount of your standard deduction multiplied by the ratio of your Hawaii adjusted gross income to total adjusted gross income from all sources. Line 10 — For each column, multiply $1,144 by the number of exemptions you claimed on Form N-11, line 6e, or Form N-15, line 6e. If you claimed the disability exemption, enter that amount. Nonresidents and part-year residents, Page 3 enter the amount of your personal exemptions multiplied by the ratio of your Hawaii adjusted gross income to total adjusted gross income from all sources. Line 12 — To compute the tax, use the Tax Table, Tax Rate Schedules, Capital Gains Tax Worksheet in the Form N-11 Instructions or in the Form N-15 Instructions, Form N-168, or Form N-615. Line 13 — Enter all of the additional taxes you owed because of events that occurred during the months shown in the column headings. Include the following: • • • • • • Form N-2, Individual Housing Account Form N-103, Sale of Your Home Form N-152, Tax on Lump Sum Distributions Form N-312, Capital Goods Excise Tax Credit Recapture Form N-338, Recapture of Tax Credit for Flood Victims Form N-344, Important Agricultural Land Qualified Agricultural Cost Tax Credit Recapture • Form N-348, Capital Infrastructure Tax Credit Recapture • Form N-405, Tax on Accumulation Distribution of Trusts • Form N-586, Tax Credit for Low Income Housing Recapture • Form N-814, Parent’s Election to Report Child’s Interest and Dividends Line 15 — Enter the credits you are entitled to because of events that occurred during the months shown in the column headings. When figuring your credits, you must annualize any item of income or deduction used to figure the credit.
Instructions for Form N-210, Rev 2018
More about the Hawaii Form N-210 Individual Income Tax Estimated TY 2018
We last updated the Underpayment of Estimated Tax by Individuals, Estates, and Trusts in February 2019, so this is the latest version of Form N-210, fully updated for tax year 2018. You can download or print current or past-year PDFs of Form N-210 directly from TaxFormFinder. You can print other Hawaii tax forms here.
Other Hawaii Individual Income Tax Forms:
|Form Code||Form Name|
|Form N-11||Individual Income Tax Return (Resident Form)|
|Form N-15||Individual Income Tax Return (Nonresidents and Part Year Residents)|
|Income Tax Instructions||Hawaii Income Tax Instruction Booklet|
|Form N-101A||Application for Automatic Extension of Time to File Tax Return|
|Form N-200V||Individual Income Tax Payment Voucher|
Hawaii usually releases forms for the current tax year between January and April. We last updated Hawaii Form N-210 from the Department of Taxation in February 2019.
Form N-210 is a Hawaii 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 Hawaii Form N-210
We have a total of seven past-year versions of Form N-210 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
Instructions for Form N-210, Rev 2018
Form N-210, Rev. 2017, Underpayment of Estimated Tax by Individuals, Estates, and Trusts
Form N-210, Rev. 2016, Underpayment of Estimated Tax by Individuals, Estates, and Trusts
Form N-210, Rev. 2015, Underpayment of Estimated Tax by Individuals, Estates, and Trusts
Form N-210, Rev. 2014, Underpayment of Estimated Tax by Individuals, Estates, and Trusts
Form N-210, Rev. 2012, Underpayment of Estimated Tax by Individuals, Estates, and Trusts
Form N-210, Rev. 2011, Underpayment of Estimated Tax by Individuals, Estates, and Trusts
While we do our best to keep our list of Hawaii 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.