Get Dr 0204 Tax Year Ending Computation Of Penalty Due Based On Underpayment Of Colorado Individual

Filling out the DR 0204 form is essential for accurately determining any penalties incurred from underpayment of estimated taxes in Colorado. This guide provides you with clear, step-by-step instructions to help you complete the form efficiently and accurately.

Follow the steps to complete the DR 0204 form effectively.

1. Click ‘Get Form’ button to obtain the form and open it in an editable format.
2. Begin by completing Part 1, which addresses exceptions to the estimated tax penalty. You will need to determine if you qualify for any exceptions related to farming or fishing income.
3. In Part 2, calculate your required annual payment. Enter your current year tax liability and calculate 70% of this amount, or 100%/110% of the previous year's tax liability as applicable.
4. Proceed to Part 3 to compute your penalty. Enter your estimated payments, any withheld taxes, and determine your underpayment for each applicable quarter.
5. Complete the calculations in Part 3, noting the total penalty to be included with your DR 0104 form. Ensure you include any additional amounts for late payments as instructed.
6. If you wish to use the annualized income installment method, fill out Part 4 to calculate your estimated payments based on income received throughout the year.
7. Finally, review all sections for accuracy, then save your changes. You can choose to download, print, or share the form as needed.

Take control of your tax obligations by completing your forms online now!