How to Pay Estimated Tax
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- On the Welcome page select “No, I am not using a Letter ID.”
- On the next page, Type of Taxpayer = “Individual” and Type of Tax = “Individual Income Tax.” Then complete the other required fields and select the Next button.
You can make a single payment or schedule all four payments at one time.
By Credit or Debit Card
Value Payment Systems LLC processes one-time credit and debit card payments. They charge a convenience fee for this service.
Make your check payable to Minnesota Revenue and include the last four digits of your Social Security number in the memo line. Include the Form, M14, Individual Estimated Tax Payment voucher.
Keep a record of your payments. You’ll need this information when filing your Minnesota Individual Income Tax Return. Use our form
to keep track of your payments.
For more information, see Payment Options.
What is Estimated Tax?
Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from:
- unemployment compensation
- interest and dividends
- gains from the sale of assets
- prizes and awards
You may also have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.
Do I Need to Make Estimated Tax Payments?
You must make estimated tax payments if you expect to owe $500 or more in tax after subtracting your withholding and refundable credits. Your estimated payments plus withholding and refundable credits must be either:
- 90 percent of your tax liability for the current year; or
- 100 percent of your tax liability for the previous year (110 percent if your adjusted gross income was more than $150,000).
“Tax liability” is the amount you owe after subtracting total nonrefundable credits from your total tax. For more information, see Minnesota Statutes, Section 289A.25.
How Do I Calculate Estimated Tax Payments?
- 1. Use federal Form 1040-ES, Estimated Tax for Individuals, to calculate your federal adjusted gross income, deductions, exemptions, and taxable income for the year.
- 2. Use Form M1, Minnesota Individual Income Tax return, to estimate your Minnesota tax liability and credits for the year.
- Enter the federal taxable income you calculated in Step 1 on line 1 of Form M1.
- Complete the form using the tax rates found on our website.
- Divide the amount you owe by four to get each payment. If you choose to pay the entire amount at one time, your payment is due April 15.
You may need to adjust your estimated payment amounts if your income, deductions, exemptions, or credits change during the year, or if there are tax law changes.
Note: If you do not pay the correct amount by the due dates, we can assess an underpayment penalty. This penalty may apply even if you have an overpayment on your tax return.
When are Estimated Tax Payments Due?
For most people, estimated tax payments are due four times a year:
|Jan. 1 through March 31
|April 1 through May 31
|June 1 through Aug. 31
|Sept. 1 through Dec. 31
||Jan. 15 (of the following year)*|
* You do not have to make this estimated payment if you file your Minnesota Individual Income Tax return and pay the entire amount by Jan. 31.
Note: If you are a fiscal year taxpayer, your payments are due on the 15th day of the fourth, sixth, and ninth months of your fiscal year and the first month of your next fiscal year.
January payment: You do not have to make the estimated payment due January 15 if you file and pay your Minnesota Individual Income Tax return by January 31.
Farmers and commercial fishermen: If at least two-thirds of your gross income is from farming or fishing, you only need to make one estimated payment – due Jan. 15 of the following year. You do not have to make this estimated payment if you file your Minnesota Individual Income Tax return and pay the entire amount by March 1.