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2023 Schedule EST Instructions
Additional Charge for Underpayment of Estimated Tax for Trusts (Form M2), Partnerships (Form M3) and Corporations S
(Form M8)
This schedule is not required if you are filing your first Minnesota tax return.
Who Must File
If you are a trust, partnership or S corporation, use this schedule to determine if you owe an additional charge for underpaying estimated tax.
(Decedent estates are not subject to the additional charge.)
You may owe an additional charge if one of the following is true:
• you did not pay the correct amount of estimated tax by the due dates, even if you expect to receive a refund
• your Minnesota tax liability for the current year, less any credits, is $500 or more
Exception. You are not subject to an additional charge for underpayment of estimated tax if this is the first year you are filing a Minnesota tax
return.
Avoiding the Additional Charge
To avoid an additional charge for underpayment of estimated tax, you must make the required estimated tax payments on time and pay the
lesser of:
• 90% of your current year’s original tax liability, less any credits
• 100% of your prior year’s total tax liability, less any credit. However, if your Minnesota assignable gross income on your 2022 Form M2 is
more than $150,000, you must use 110% of your previous year’s tax liability instead of 100%
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.
Short Taxable Year
If you have a short taxable year, the installments are due on the 15th day of the third, sixth, ninth and final months. No installment is required
for a short taxable year of fewer than four months.
Line Instructions
These instructions refer to your original return. However, an amended return is considered the original return if it is filed by the regular due
date of the original return.
Line 2 — 2023 Withholding and Credits
Trusts: Add lines 24, 26, and 27 of your 2023 Form M2.
Partnerships: Enter the amount from line 14 of your 2023 Form M3.
S corporations: Enter the amount from line 17 of your 2023 Form M8.
Optional Short Method or Regular Method
You may use the optional short method only if one of the following is true:
• you did not make any estimated tax payments
• you paid your 2023 estimated tax in four equal amounts on or before the due date of each installment
Note: If any payment was madebefore the installment due date, it is best to use the regular method. Using the short method will cause you to
pay a larger additional charge than the regular method. If the payment was only a few days early, the difference is likely to be small.
Continue with line 7 to use the optional short method, and skip lines 13-22.
If you are not eligible or you choose not to use the optional short method, use the regular method to determine your additional charge. 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.
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% (0.25) of line 6 in each of the four columns on line 13.
You may benefit from using the annualized income installment method if your income varied throughout the year or if you had a late capital
gain or higher 4th quarter income. If you use this method for one payment due date, you must use it for all. Complete the worksheet on
Form ESTa. Continued 1
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