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
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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.
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 tax of $500 or more when you file your return; and
- You expect your combined withholding and refundable credits to be less than:
- 90 percent of your “tax liability” for the current year; or
- 100 percent of your “tax liability” for the previous year (or 110 percent if your adjusted gross income exceeds $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?
- Figure your federal adjusted gross income, deductions, exemptions and taxable income for the year using federal Form 1040-ES, Estimated Tax for Individuals.
- Use Minnesota Form M1 for the prior year as a worksheet. Enter the federal taxable income you calculated in Step 1 on line 1 of your Form M1 worksheet.
- Complete the rest of your worksheet, as necessary. When determining tax, use the tax rates in the Individual Estimated Income Tax Payments instructions rather than the table in the M1 instructions for a more accurate estimate.
- 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.
If your income, deductions, exemptions, or credits change during the year or if there are tax law changes, you may need to adjust your estimated payment amounts.
When are Estimated Tax Payments Due?
Estimated tax payments are due four times a year, as shown in the table below.
|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)|
If you don’t pay enough estimated tax by the due date for each period, you may be charged a penalty, even if you are due a refund when you file your income tax return.
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 have only one estimated payment due date - January 15. However, you do not have to make the estimated payment due January 15 if you file and pay your Minnesota Individual Income Tax return by March 1.