2023 MI-2210, Page 4
• An overpayment from 2022 that has been credited
forward to 2023 will be applied to the rst installment.
• Do not enter extension payments on this form.
In column A, enter the estimated tax payments made
by April 18, 2023, that were for the 2023 tax year. In
column B, enter payments made after April 18 and through
June 15, 2023. In column C, enter payments made after
June 15 and through September 15, 2023. In column D,
enter payments made after September 15, 2023, and through
January 16, 2024. Extension payments or other payments
received after January 16, 2024 are not considered
estimated tax payments for tax year 2023.
Part 2: Figuring the Interest
The MI-2210 computes interest to April 15, 2024, or the
date of payment, whichever is earlier. This part of the form
breaks down underpayments to the payment period they
are due, then gives the interest rate for that period. Interest
is gured for the number of days the installment remained
unpaid. All payments are applied to any underpayment rst,
regardless of when the payment is received. The balance
(if any) is applied to the next period.
NOTE: Complete lines 10 through 21 for column A
before going to column B, etc. You need only complete
each column to the date the payment was made. If the total
underpayment for any payment period was not paid o with
one payment, you may need to do several calculations in
each column.
Example: Your tax due each period is $2,000. You
have an underpayment of $1,000 for the rst period (due
April 18). On June 10 you send $2,000 to pay the second
installment. But, $1,000 of this payment goes toward your
$1,000 underpayment rst. Interest is computed on $1,000
from April 18 to June 10 (53 days). The remaining $1,000
is applied to your second installment payment, creating a
second period underpayment of $1,000.
Interest will continue to accrue on this $1,000 until another
payment is received.
Interest rates are set by Treasury twice each year for
six-month periods starting January 1 and July 1. The rate is
1 percent above the prime rate in Michigan. For example,
if the Michigan prime rate is 5 percent, your interest
rate for completing the MI-2210 is 6 percent for that
six-month period. For current interest rates, visit our
website at www.michigan.gov/taxes for a copy of Revenue
Administrative Bulletin 2023-17.
Part 3: Figuring the Penalty
Penalty is 25 percent of the tax due (minimum $25 per
quarter) for failing to le estimated payments or 10 percent
(minimum $10 per quarter) for failing to pay enough with
your estimates or paying late.
Line
23: The underpayment for the penalty charge is
gured the same way as the underpayment for interest.
Exceptions:
• Payments are applied in the quarter they are received.
• If an overpayment occurs in any quarter, the
overpayment amount is carried forward to the next
quarter and applied as a timely payment.
• Payments are not carried back to oset underpayments
in previous quarters.
Subtract lines 10 and 11 from line 9 in each column. The
amount on line 23 cannot be less than zero.
Line
24: Enter 25 percent if estimated tax payments
were not made for 2023. Enter 10 percent if estimated tax
payments were made for 2023.
Example: In the example in Part 2, the $2,000 payment
received on June 10 is applied to the $2,000 required
payment in the second quarter. The penalty in the rst
quarter is $100 (10 percent of the $1,000 underpayment in
the rst quarter). The penalty in the second quarter would
be zero.
Annualized Income Worksheet
You must annualize for the entire year by completing all
four columns.
Complete one column at a time.
Line 1: This line must be the year-to-date total for each
period in the appropriate column. Each column is an
accumulating total and should include the amount from the
previous column plus any additional income earned up to
that date. The last column should equal the amount on your
MI-1040, line 14. For duciary lers, the last column should
equal the amount on your MI-1041, line 12.
Example: You earned $5,000 in the rst three months of
the year. You earned an additional $4,000 during April and
May. Enter on Worksheet, line 1, $5,000 in the rst column
and $9,000 in the second column.
Line 2: Fiduciary lers, do not use the amounts shown
in columns A through D. Instead, use 6, 3, 1.71429, and
1.09091, respectively, as the annualization amounts.
Line 7: Fiduciary lers, enter the sum of your 2023
MI-1041 credits from lines 14b, 15b, 18 and 19 in each
column.
Line 12: Each entry on line 12 of the Annualized
Worksheet will be the result of MI-2210, Part 1, line 7,
divided by four, regardless of how the income is earned.
If you add line 16 of the Annualized Worksheet across the
columns, the sum should equal the total shown on MI-2210,
line 7.
Taxpayers who annualize must also enter 25 percent of
tax withheld in each column of the MI-2210, line 10, or
submit documentation to substantiate uneven distribution
of withholding.