EST: Additional Charge for Underpayment of Estimated Tax (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota Form EST calculates the additional charge for underpayment of 2025 estimated tax by trusts, partnerships, and S corporations. It determines the required annual payment and any additional charge to report on 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 for 2025.
You may owe a charge if you did not pay the correct estimated tax by the due dates, even if you expect a refund, or if your current-year Minnesota tax liability minus 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, stop. You do not owe an additional charge.
- If the required annual payment on line 6 is no more than the withholding and credits on line 2, stop. You do not owe an additional charge.
When it's due
For tax year 2025, the regular-method payment due dates printed on Schedule EST are:
- April 15, 2025
- June 16, 2025
- September 15, 2025
- January 15, 2026
These are estimated-tax payment dates, not a separately stated deadline for filing Schedule EST.
What you'll need
Have these returns and records available to complete the schedule:
- Your 2025 Minnesota Form M2, M3, or M8, including the tax, withholding, and credit amounts.
- Your 2024 Minnesota return, if filed, for the prior-year tax amount and any refund you elected to apply to 2025 estimated tax.
- Records of your 2025 estimated-tax payments made in 2025 and 2026, including payment dates and amounts.
- The trust, partnership, or S corporation's name, FEIN, and Minnesota Tax ID Number.
If you use the annualized income installment method, complete Worksheet ESTa. You will need income, Minnesota additions and subtractions, and applicable tax and credit amounts for the periods shown on that worksheet.
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 38
- Form M3, line 20
- Form M8, line 23
The supplied text does not give a mailing address or e-file instructions.
Common mistakes
- Using the short method when you are not eligible. It is allowed only if you made no estimated-tax payments or paid your 2025 estimated tax in four equal amounts on or before each installment's due date.
- Overlooking the effect of early payments. The instructions say the regular method is best if any payment was early. The short method produces a larger charge in that situation.
- Including other amounts on line 7. Enter only 2025 estimated-tax payments made in 2025 and 2026.
- Using prior-year tax without a full-year return. If you did not file a 2024 return, or that return 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 that method for one payment due date, you must use it for all.
- Using the printed worksheet annualization amounts for a trust. Trusts must instead use 6, 3, 1.71429, and 1.09091 for columns A through D.
Questions people ask
Can I owe an additional charge even if I expect a refund?
Yes. The instructions say a charge may apply if you did not pay the correct estimated tax by the due dates, even if you expect a refund.
How can I avoid the additional charge?
Make the required estimated-tax payments on time and pay the lesser of 90% of your current year's original tax liability, less credits, or 100% of your prior year's total tax liability, less credits. If Minnesota assignable gross income on your 2024 Form M2 is more than $150,000, use 110% of the prior year's tax liability instead of 100%.
What if my income varied during the year?
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 2024 refund applied to my estimated tax?
If you elected on your 2024 Minnesota return to apply all or part of your refund to 2025 estimated tax, that amount is treated as a credit for your first payment period.