EST: Additional Charge for Underpayment of Estimated Tax (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota Form EST calculates any additional charge for underpayment of 2024 estimated tax by trusts, partnerships and S corporations. It shows the required annual payment, underpayments and resulting charge, and is included with Form M2, M3 or M8.
Who files this form
Trusts filing Form M2, partnerships filing Form M3, and S corporations filing Form M8 use Schedule EST to determine whether they owe an additional charge for underpaying estimated tax.
You may owe a charge if:
- You did not pay the correct estimated tax amounts by the due dates, even if you expect a refund.
- Your current-year Minnesota tax liability, less credits, is $500 or more.
This schedule is not required for your first Minnesota tax return, and no underpayment charge applies for that first year. Decedent estates are not subject to the charge.
If line 3 is less than $500, or line 6 is no more than line 2, stop. You do not owe an additional charge.
When it's due
For tax year 2024, the regular-method estimated payment due dates printed on Schedule EST are:
- April 15, 2024
- June 17, 2024
- September 16, 2024
- January 15, 2025
The instructions provide different payment timing for fiscal-year filers and short taxable years.
What you'll need
Have these returns and records available:
- Your 2024 Minnesota Form M2, M3, or M8 for the tax, withholding, and credit amounts.
- Your 2023 Minnesota return, if filed, for the prior-year tax amount and any refund applied to 2024 estimated tax.
- Records of your 2024 estimated tax payments, including payments made in 2025, with payment amounts and dates.
- Your trust, partnership, or S corporation name, FEIN, and Minnesota Tax ID Number.
If you use the annualized income installment method, complete Worksheet ESTa using income, Minnesota additions and subtractions, and applicable tax and credit information for each period.
How to file
Include Schedule EST with your Form M2, M3, or M8.
Enter the additional charge from Schedule EST line 12 or line 22 on:
- Form M2, line 37
- Form M3, line 20
- Form M8, line 23
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Using the short method when you are not eligible. It is allowed only if you made no estimated payments or paid your 2024 estimated tax in four equal amounts on or before each installment due date.
- Overlooking the effect of early payments. The instructions say the regular method is best if a payment was early. The short method produces a larger charge, although the difference is likely small if the payment was only a few days early.
- Adding other amounts to line 7. Include only 2024 estimated tax payments made in 2024 and 2025.
- Using a prior-year tax amount without a qualifying return. If you did not file a 2023 return, or it covered less than 12 months, skip line 5 and enter line 4 on line 6.
- Using annualized income for only some installments. If you use this method for one payment due date, you must use it for all.
- Forgetting the attachment. Include Schedule EST with your Form M2, M3, or M8.
Questions people ask
Can I owe an additional charge even if I expect a refund?
Yes. You may owe a charge if you did not pay the correct estimated tax amounts by the due dates, even if you expect a refund.
Do I need this schedule for my first Minnesota return?
No. The schedule is not required, and you are not subject to the underpayment charge for your first year filing a Minnesota tax return.
What if my income varied during 2024?
You may benefit from the annualized income installment method if your income varied, you had a late capital gain, or your fourth-quarter income was higher. Complete Worksheet ESTa and use the method for all payment due dates.
How is a 2023 refund applied to 2024 estimated tax treated?
If you elected on your 2023 Minnesota return to apply some or all of that refund to 2024 estimated tax, include it on line 14. It is treated as a credit for the first payment period.