Minnesota Statutes Various State Taxes and Programs (Ch. 289A-295) § 289A.25. Payment of estimated tax by individuals, trusts, S corporations, or partnerships

Subdivision 1. Requirements to pay. An individual, trust, S corporation, or partnership must, when prescribed in subdivision 3, paragraph (b), make payments of estimated tax. For individuals, the term “estimated tax” means the amount the taxpayer estimates is the sum of the taxes imposed by chapter 290 for the taxable year. For trusts, S corporations, and partnerships, the term estimated tax means the amount the taxpayer estimates is the sum of the taxes for the taxable year imposed by chapter 290 and the composite income tax imposed bysection 289A.08, subdivision 7. If the individual is an infant or incompetent person, the payments must be made by the individual's guardian. If joint payments on estimated tax are made but a joint return is not made for the taxable year, the estimated tax for that year may be treated as the estimated tax of either spouse or may be divided between them.

Subd. 4. No addition to tax where tax is small. No addition to tax is imposed under subdivision 2 for a taxable year if the tax shown on the return for the taxable year (or, if no return is filed, the tax) reduced by the credits allowable is less than $500.

Subd. 5. Amount of required installment. The amount of any installment required to be paid shall be 25 percent of the required annual payment except as provided in clause (3). The term “required annual payment” means the lesser of

A reduction in an installment under clause (3) must be recaptured by increasing the amount of the next required installment by the amount of the reduction.

Subd. 5a. Repealed byLaws 1994, c. 587, art. 1, § 25, par. (b).

Subd. 7. Waiver of addition to tax. No addition to the tax is imposed under this section with respect to an underpayment to the extent the commissioner determines that the provisions ofsection 6654(e)(3) of the Internal Revenue Code 1apply.

Subd. 8. Application of section; tax withheld on wages. For purposes of this section, the estimated tax must be computed without reduction for the amount that the taxpayer estimates as the taxpayer's credit undersection 290.92, subdivision 12(relating to tax withheld at source on wages), and any other refundable credits allowed against income tax liability, and the amount of those credits for the taxable year is considered a payment of estimated tax, and an equal part of those amounts is considered paid on the installment date, determined under subdivision 3, paragraph (b), for that taxable year, unless the taxpayer establishes the dates on which the amounts were actually withheld, in which case the amounts so withheld are considered payments of estimated tax on the dates on which the amounts were actually withheld.

Subd. 9. Special rule for return filed on or before January 31. If, on or before January 31 of the following taxable year, the taxpayer files a return for the taxable year and pays in full the amount computed on the return as payable, then no addition to tax is imposed under subdivision 2 with respect to any underpayment of the fourth required installment for the taxable year.

Subd. 10. Special rule for farmers and fishermen. For purposes of this section, if an individual is a farmer or fisherman as defined insection 6654(i)(2) of the Internal Revenue Codefor a taxable year, only one installment is required for the taxable year, the due date of which is January 15 of the following taxable year, the amount of which is equal to the required annual payment determined under subdivision 5 by substituting “66-2/3 percent” for “90 percent,” and subdivision 9 shall be applied by substituting “March 1” for “January 31,” and by treating the required installment described as the fourth required installment.

Subd. 11. Fiscal year taxpayer. The application of this section to taxable years beginning other than January 1 must be made by substituting, for the months named in this section, the months that correspond. This section must be applied to taxable years of less than 12 months, under rules issued by the commissioner.

Subd. 12. Estates. The provisions of this section do not apply to an estate.

Subd. 13. Overpayment of estimated tax installment. If an installment payment of estimated tax exceeds the correct amount of the installment payment, the overpayment must be credited against the unpaid installments, if any.