Minnesota Underpayment of Estimated Income Tax

Underpayment of Estimated Income Tax
2023 M15, Underpayment of Estimated Income Tax for Individuals
*231151*

2023 Schedule M15, Underpayment of Estimated Income Tax
For	Individuals	(Form	M1)
Your	First	Name	and	Initial	

Last	Name	

Social	Security	Number

Required Annual Payment

1 Minnesota income tax for 2023 (from line 17 of Form M1)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 1
2 Minnesota withholding and credits for 2023 (add lines 20 and 22 of Form M1)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 2
3 Subtract line 2 from line 1 . If less than $500, STOP HERE; you do not owe an underpayment penalty  .  .  .  .  .  .  .  .  .  . 3
4	 Multiply	line	1	by	90%	(.90).	Farmers and commercial fishermen:	Multiply	line	1	by	66.7%	(.667)	  .  .  .  .  .  .  .  .  .  .  .  .  . 4
5	 Minnesota	income	tax	for	2022	(from	line	17	of	Form	M1).	See	instructions	if	your	2022	federal	adjusted	
gross	income	was	more	than	$150,000	or	if	you	did	not	file	a	2022	return	.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5
6 Required annual payment. Amount from line 4 or line 5, whichever is less  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 6
• If	line	6	is	less	than	or	equal	to	line	2,	STOP	HERE;	you	do	not	owe	an	underpayment	penalty.
• If	line	6	is	more	than	line	2,	continue	with	line	7	or	line	13,	depending	on	which	method	you	use.

Optional Short Method (see instructions to determine which method to use)
7	 Quarterly	estimated	tax	payments	you	made	for	2023	  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 7
8	 Add	line	2	and	line	7	  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 8
9	 Total	underpayment	for	the	year.	Subtract	line	8	from	line	6	
(if result is zero or less, STOP HERE; you do not owe an underpayment penalty)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9
10	 Multiply	line	9	by	2%	(.02)	  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 10
11	 •	 If	the	amount	on	line	9	will	be	paid	on	or	after	April	15,	2024,	enter	0.
• If	the	amount	was	paid	before	April	15,	2024,	use	the	following	computation
and enter the result on line 11:
Number of days
paid before 4/15/24

						Amount	on	line	9		

x

x .000137	  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 11

12 Penalty. Subtract	line	11	from	line	10.	Enter	result	here	and	on	line	27	of	Form	M1	  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 12

Regular Method

A

April	18,	2023	

B

June	15,	2023	

C

Sept.	15,	2023	

D

Jan.	16,	2024

13 Enter	25%	(.25)	of	line	6	in	each	column	OR	use	the	
annualized income installment worksheet on the
back of this form . If you use the worksheet or
are	a	farmer	or	fisherman,	see	instructions	  .  .  .  .  .  .  .  .  .  .  .  . 13
14 Credits.	See	instructions	  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 14
15 Overpayment.	If	line	14	is	more	than	line	13,	subtract
line	13	from	line	14.	Enter	the	result	here	and	add	it	
to	line	14	in	the	next	column.	Overpayments	in	any	
quarter	following	an	underpayment	must	first	be	
applied to making up previous underpayments  .  .  .  .  .  .  .  .  . 15
16 Underpayment.	If	line	14	is	less	than	line	13,
subtract	line	14	from	line	13.	Enter	the	result
here	and	go	to	line	17	below	  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 16
17	 Enter	the	date	of	payment	or	April	15,	2024,
whichever is earlier (see instructions)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 17
18 Number of days between the payment due date
and	the	date	on	line	17	  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 18
19	 Divide	line	18	by	365.	The	result	is	a	decimal	  .  .  .  .  .  .  .  .  .  .  . 19
20	 Multiply	line	19	by	5%	(.05).	Enter	as	a	decimal	  .  .  .  .  .  .  .  .  . 20

.
.

.
.

.
.

21	 Multiply	line	20	by	line	16	  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 21
22 Penalty. Add	columns	A-D	on	line	21.	Enter	result	here	and	on	line	27	of	Form	M1  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 22

You must include this schedule with your Form M1.

9995

.
.

Worksheet - Annualized Income Installment
	
	
Step 1 Complete	lines	1	-	11	of	Schedule	AI	of	federal	Form	2210	
	
using	the	instructions	below.

(a)	
1/1/23–3/31/23	

(b)	
1/1/23–5/31/23	

(c)	
1/1/23–8/31/23	

(d)
1/1/23–12/31/23

Step 2 Minnesota	additions	(see instructions below)
Step 3 Add step 1 and step 2
Step 4	 Minnesota	exemptions	and	subtractions	(see instructions below)
Step 5 Subtract	step	4	from	step	3
Step 6 Figure	the	tax	for	the	amount	shown	in	step	5.	Deduct	the	appropriate		
nonrefundable	credits.	Include	annualized	Minnesota	alternative	minimum tax .
Step 7	 Percentage	for	each	period

22.5%	

45%	

67.5%	

90%

Step 8	 Multiply	step	6	by	step	7
Complete Steps 9–15 of one column before going to the next column
Step 9 Add the amounts from step 15 from all preceding payment periods .
Step 10	Subtract	step	9	from	step	8	(if result is zero or less, enter 0)
Step 11	Enter	25%	(.25)	of	line	6	of	Schedule	M15	in	each	column
Step 12	Enter	step	14	of	the	preceding	column.
Step 13 Add step 11 and step 12
Step 14	Subtract	step	10	from	step	13	(if result is zero or less, enter 0)
Step 15	Amount	from	step	10	or	step	13,	whichever is less .
	
Also	enter	this	amount	on	line	13	of	Schedule	M15.

Instructions for Above Worksheet
Step 1

Complete lines 1 through 11 of Schedule AI of federal Form 2210 using these modifications.
• Use your Minnesota Itemized deductions on line 4 of Schedule AI
• Use your Minnesota standard deduction on line 7 of Schedule AI
• Enter zero on line 9

Step 2

Using the amounts from line 2 of Form M1, Individual Income Tax, determine your Minnesota additions for each period. Enter the total
amounts in step 2.

Step 4

Using the amounts from lines 5 through 7 of Form M1, determine your Minnesota subtractions for each quarter.

Step 6 — Minnesota Alternative Minimum Tax
If the Minnesota alternative minimum tax applies, determine the amount of Minnesota alternative taxable income for each period. Multiply
that amount by the appropriate multiplier shown on line 2 of Schedule AI of federal Form 2210. From the resulting annualized alternative
minimum taxable income, subtract the appropriate minimum amounts depending on the filing status ($82,150 for Married Filing Jointly or
Qualifying Surviving Spouse, $41,080 for Married Filing Separately, or $61,610 for Single or Head of Household) and multiply the difference
by 6.75% (.0675).
If the result is more than the regular tax shown on step 6, replace the regular tax with the Minnesota alternative minimum tax. See Schedule
M1MT for instructions on figuring the Minnesota alternative taxable income.

2023 Schedule M15 Instructions
Underpayment of Estimated Income Tax for Individuals (Form M1)

Do I need to file Schedule M15?

Use Schedule M15, Underpayment of Estimated Income Tax, to determine if you owe a penalty for underpaying estimated tax.
You may owe an underpayment penalty if you have $500 or more of Minnesota income tax due on income you received in 2023 after subtracting these:
•	 Minnesota income tax withheld from your income, plus any Minnesota estimated tax payments made
•	 2023 refundable credits you are eligible for and claim (including the Child and Dependent Care, Child and Working Family, K-12 Education,
Parents of Stillborn Children, Refundable Credit for Tax Paid to Wisconsin, and Historic Structure Rehabilitation credits)
You do not have to pay an underpayment penalty if all of these apply:
•	 You did not have a Minnesota tax liability on line 17 of your 2022 Form M1, Individual Income Tax
•	 You were a Minnesota resident for all of 2022
•	 Your 2022 return covered a 12-month period
Nonresidents and part-year residents. Determine your required annual payment based on your Minnesota assignable adjusted gross income.
Farmers and commercial fishermen. If you filed Form M1 and paid your entire income tax by March 1, 2024, or paid two-thirds of your
income tax by January 16, 2024, you do not have to complete this schedule. You are considered a farmer or commercial fisherman if you earn
at least two-thirds of your annual gross income by farming or commercial fishing.

Exceptions to the Penalty

If the IRS does not require you to pay additional charges for underestimating your federal tax because you are newly retired or disabled, or
because of a casualty, disaster, or other unusual circumstances, do not complete Schedule M15. Include a copy of your federal request with
your Form M1.

How do I avoid the penalty?

To avoid an underpayment penalty of estimated tax, you must have had Minnesota withholding or made the required, timely estimated tax payments and paid the lesser of:
•	 90% of your current year’s original tax liability (66.7% if you are a farmer or commercial fisherman)
•	 100% of your prior year’s total tax liability (110% if your federal adjusted gross income is more than $150,000)
If you are a nonresident or part-year resident, you must have had at least $1 of Minnesota tax liability to use 100% of your prior year’s tax.

Fiscal Year Taxpayers

If you file your Minnesota return on a fiscal year basis, change the payment due dates to the 15th day of the fourth, sixth and ninth months of
your fiscal year, and the first month of your next fiscal year.

Line Instructions

Although these instructions refer to your original return, both of these are also considered an original return:
•	 An amended return you filed by the due date of your original return
•	 A joint Form M1 replacing previously filed separate returns

Line 5

If you did not file a 2022 return, or it did not cover the full 12-month period, skip line 5 and enter the amount from line 4 on line 6.
Enter the amount from line 17 of your 2022 Form M1, unless your 2022 federal adjusted gross income (from line 11 of federal Form 1040) was
more than $150,000. If you are a nonresident or part-year resident, use your adjusted gross income assignable to Minnesota.
If your 2022 federal adjusted gross income was more than $150,000, multiply line 17 of your 2022 Form M1 by 110%.

Optional Short Method or Regular Method

You may use the optional short method only if either of these apply:
•	 You did not make any estimated tax payments (or your only payments were from Minnesota income tax withheld from your wages)
•	 You paid your 2023 estimated tax in four equal amounts on or before the due date of each installment
Note: If you made any payment before the installment due date, it is best to use the regular method. Using the short method will cause you to
pay a larger penalty than the regular method. If your payment was only a few days early, the difference will likely be small. Continue with line
7 to use the optional short method.
If you are not eligible or choose not to use the optional short method, use the regular method to determine your underpayment penalty. Skip
lines 7–12 and continue with line 13.

Optional Short Method
Line 7

Enter the total amount of 2023 estimated tax payments you made in 2023 and 2024. Do not include any other amounts on line 7.
Continued

Line 12

Subtract line 11 from line 10. This is the amount of your underpayment of estimated tax penalty. Enter this amount on line 27 of your 2023
Form M1. If you owe an amount on line 26 of Form M1, add the penalty on line 12 of this schedule to the amount owed and replace line 26
of Form M1 with the total. If you have a refund on line 24 of Form M1, subtract the penalty on line 12 of this schedule from your refund and
replace line 24 of Form M1 with the result.

Regular Method

Complete column A, lines 13–16. Then, depending on whether you have an underpayment or an overpayment, either continue with line 17 of
column A (underpayment) or line 13 of column B (overpayment).

Line 13

Enter 25% (.25) of line 6 in each of the four columns on line 13, unless one of these conditions applies:
1 Your taxable income was higher at some times during the year and lower at others.
	 You may benefit by figuring your installments using the annualized income installment method. Complete the worksheet on the back of
Schedule M15.
	 The annualized income installment worksheet automatically selects the smaller of the annualized income installment or the regular installment (increased by the amount saved by using the annualized income installment method in figuring earlier installments).
	 If you use this method for one payment due date, you must use it for all payment due dates. Follow the worksheet instructions on the back of
Schedule M15.
2 You are a farmer or commercial fisherman and did not pay your entire income tax by March 1, 2024, or did not pay two-thirds of your income
tax when you paid your estimated tax by January 16, 2024.
	 Enter the full amount of line 6 under column D of line 13 and omit columns A, B and C of line 13.

Line 14

For each payment period, enter the total of these:
•	 Estimated payments you paid for each payment period. If you applied a 2022 refund to your estimated tax, it is considered an estimated payment for your first payment period.
• 	Minnesota income tax withheld during 2023. You are considered to have paid Minnesota withholding evenly during the year unless you show
otherwise. If you were employed all year, divide the amount from line 20 of Form M1 by four. Include the result in each column.
• 	Your 2022 income tax refund, if you elected on your 2022 Minnesota return to apply all or a portion of your refund to your 2023 estimated
tax
• 	Any refundable credits you are eligible for and claim. You are considered to have received refundable credits evenly during the year unless
you show otherwise. Divide the amount from line 18 of Form M1 by four, and include the result in each column.
You are considered to have paid any Minnesota income tax withheld or received any refundable credits (Child and Dependent Care, Working
Family, K–12 Education, Parents of Stillborn Children, Credit for Taxes Paid to Wisconsin, or Historic Structure Rehabilitation) evenly during
the year unless you show otherwise. If you worked all year, divide the total amount of withholding and credits by four, and enter the result in
each column. Your 2022 refund that you applied as an estimated payment, if any, is considered a credit to your first payment period.
If you filed your 2023 Minnesota return and paid the tax you owed on or before January 31, 2024, you may consider the tax paid as of January
16, 2024.

Lines 15 and 16

Compare line 13 of each column to line 14 of the same column.
If line 14 is more than line 13, you have an overpayment for the payment period. Subtract line 13 from line 14 and enter the result on line 15.
Add line 15 to the credit on line 14 of the next column. If you have an overpayment in any quarter following an underpayment, you must first
apply it to previous underpayments.
If line 14 is less than line 13, you have an underpayment for that payment period. Subtract line 14 from line 13 and enter the result on line 16.
Continue with line 17.

Line 17

If you have an underpayment in all four quarters, enter the date you filed your return or April 15, 2024 (whichever is earlier) in each column.
Otherwise, enter the date you paid your underpayment on line 16 in full.
Example: You made your first quarter estimated tax payment on April 20, but you show an underpayment on line 16. On June 14, you paid your
second quarter payment in full and included the underpayment from the first quarter. On line 17, you would enter June 14 in the first and second
quarter columns.

Line 22

Add the amounts on line 21, columns A–D and enter the result on line 22. This is the amount of your underpayment of estimated tax penalty.
Enter this amount on line 27 of your 2023 Form M1. If you owe an amount on line 26 of Form M1, add the penalty on line 22 of this schedule
to the amount owed and replace line 26 of Form M1 with the total. If you have a refund on line 24 of Form M1, subtract the penalty on line 22
of this schedule from your refund and replace line 24 of Form M1 with the result.