INSTRUCTIONS: ARIZONA UNDERPAYMENT OF ESTIMATED TAX BY INDIVIDUALS (Form 221)
Arizona individuals who have underpaid their estimated tax use a form 221 to calculate what they owe. This document can be obtained from the website of the Arizona Department of Revenue.
Arizona Underpayment Of Estimated Tax By Individuals 221 Step 1: Enter your first name, middle initial and last name in the first blank box. If filing jointly with your spouse, provide their first name, middle initial and last name as well.
Arizona Underpayment Of Estimated Tax By Individuals 221 Step 2: Enter your Social Security number in the first blank box.
Arizona Underpayment Of Estimated Tax By Individuals 221 Step 3: Part A concerns calculation of your underpayment. If claiming an exemption from the imposition of estimated payment penalty because you qualify for federal relief, check the box on line 1.
Arizona Underpayment Of Estimated Tax By Individuals 221 Step 4: On line 2, enter the amount of tax for the tax year in question on line 24 of form 140, line 27 of form 140PY or line 27 of form 140NR.
Arizona Underpayment Of Estimated Tax By Individuals 221 Step 5: On line 3, enter the total tax credits claimed on your state return for the tax year in question.
Arizona Underpayment Of Estimated Tax By Individuals 221 Step 6: Subtract line 3 from line 2. Enter the resulting difference on line 4.
Arizona Underpayment Of Estimated Tax By Individuals 221 Step 7: Enter the Arizona tax withheld during the tax year in question on line 5.
Arizona Underpayment Of Estimated Tax By Individuals 221 Step 8: Subtract line 5 from line 4. Enter the resulting difference on line 6. Note that if the difference is less than $1,000, you do not need to complete this form and can stop here.
Arizona Underpayment Of Estimated Tax By Individuals 221 Step 9: Multiply line 4 by .9. Enter the resulting product on line 7.
Arizona Underpayment Of Estimated Tax By Individuals 221 Step 10: Enter the immediately preceding year's tax liability after tax credits on line 8.
Arizona Underpayment Of Estimated Tax By Individuals 221 Step 11: Enter the lesser of line 7 or 8 on line 9.
Arizona Underpayment Of Estimated Tax By Individuals 221 Step 12: Complete the rest of the form as instructed.
