PDF document

- 1 -

RPD-41272 (2021)
Rev. 10/01/2021 New Mexico Taxation and Revenue Department
2021 Calculation of Estimated Personal Income Tax Underpayment Penalty
Print your name (first, middle, last) Enter your social security number

HOW TO USE THIS FORM
Complete and submit RPD-41272 only if you are using an exception method to calculate the penalty on underpay-
ment of estimated tax due. If you do not use an exception method, the Taxation and Revenue Department (TRD) calculates
your liability using only the standard method and, if you have a liability, sends you an assessment for penalty due. Exception
methods of calculating estimated tax penalties are described in Section III. To show you qualify for an exception method, you
must also mark the indicator box on New Mexico Personal Income Tax Form PIT-1, line 35. After completing RPD-41272,
attach it to your 2021 PIT-1. If you do not need to file RPD-41272, you may use it to calculate your penalty, but do not sub-
mit the form to the Department. For a complete explanation of calculating estimated personal income tax and how to make
estimated personal income tax payments, see also Publication FYI-320, PIT-ES: Personal Income Tax Estimated Payments.
NOTE: No penalty is imposed if, in Section II, the difference between line 4 in column 2 and the tax withheld and reported
on 2021 PIT-1 for the tax year is less than $1,000. In this case, you do not owe a penalty. Do not file this form.
Section I: Mark the box below that applies to you. Refer to Section III and the descriptions of exceptions on page 2 for
more details.
1. I may use an exception method to calculate estimated tax due because (check one):

I want to calculate estimated payments based on the actual dates on which all amounts of withholding tax were
withheld for tax year 2021.
My income varied during the year and I was not required to pay estimated personal income tax until
after March 31, 2021 (both must be true).
I am a farmer or rancher who expects to receive two-thirds of gross income for 2021 from ranching or
farming, or I have received at least two-thirds of my gross income for the previous tax year from farming
or ranching.

Section II: Calculate your required annual payment.
Enter the amounts from the New Mexico personal income tax forms and schedules for the tax year shown at the top of the
column. If you did not file a full, 12-month New Mexico PIT-1 return for tax year 2020, do not complete Column 1 (2020).

NOTE: If you are a first-year resident in 2021, you are not required to make Column 1 (2020) Column 2 (2021)
estimated payments.

2. In column 1 enter the amount of Net New Mexico Income Tax from 2020
PIT-1, line 22. In column 2 enter the amount from your 2021 PIT-1.
2
3. In column 1, enter the sum of rebates and all credits reported on 2020 PIT-1,
lines 24 and 25. In column 2, enter the sum from 2021 PIT-1, lines 24 and 25.
3
4. Subtract line 3 from line 2 and enter the difference. If the difference be-
tween the amount on this line in column 2 and the income tax withheld on
2021 PIT-1 is less than $1,000, stop here. You do not owe a penalty. Do
not file this form. See note under HOW TO USE THIS FORM at the top
of this page.
4

5. Multiply column 2, line 4 by 0.90 (90%) and enter here. 5

6. Enter the amount of column 1, line 4. If you did not complete column 1 or
if column 1, line 4 is a negative number, enter zero. 6

7. Enter the lesser of lines 5 and 6. This is your required annual payment. 7
Page 1 of 7

- 2 -

RPD-41272 (2021)
Rev. 10/01/2021 New Mexico Taxation and Revenue Department
2021 Calculation of Estimated Personal Income Tax Underpayment Penalty
Section III: Calculate the amount and due date of estimated tax payments and penalties for Section IV, lines 12 and 13.
8. Line 12 for standard method. If you were required to make estimated tax payments on or before March 31, multiply
the required annual payment in line 7 by 0.25 (25%). Enter this amount in each column of line 12. If you want to calculate
estimated installment payments based on the actual dates on which all amounts of withholding tax were withheld for the
applicable year, go to instruction 11 to complete line 13.
9. Line 12 for income that varies during the year. If you did not have income sufficient to require a payment until after
March 31, read lines 9a,9b , and9c to complete line 12. Then go to instruction 11 to complete line 13.
9a. If you were required to make estimated tax payments after March 31 but before June 1, multiply the required annual payment,
in line 7 by 0.50 (50%) and enter this amount on line 12, column .bMultiply the required annual payment in line 7 by 0.25 (25%)
and enter that amount on line 12, columns c and d.
9b. If you were required to make estimated tax payments after May 31 but before September 1, multiply the required annual
payment in line 7 by 0.75 (75%) and enter that amount on line 12, column c. Multiply the required annual payment in line 7 by 0.25
(25%) and enter that amount on line 12, column d.
9c. If you were required to make estimated tax payments after August 31, enter 100% of the required annual payment in line 7 on
line 12, column d.
10. Line 12 for farmers or ranchers. If you are a qualified farmer or rancher, enter 100% of the required annual payment on
line 12, column dand go to instruction 11 to complete line 13. NOTE: If a qualified farmer or rancher files and pays the
tax in full on or before March 1 of the year following the tax year of the return, no penalty is due. In this case, complete
Sections I through IV of this form and enter zero on page 3, line 34.
11. Line 13 for total withholding tax and estimated tax paid. Divide the tax withheld for the 2021 tax year by four. Add
this amount to the estimated tax you paid for each quarter. In column a, include amounts carried forward from the prior
year PIT-1 return. If you are computing your estimated tax due based on the actual dates when the withholding tax was
withheld, add the amount of tax withheld during the quarter to any amount of estimated tax payments made for the quarter
and any other tax withheld attributable to the quarter.

Section IV: Calculate the underpayment.
Complete lines 12 and 13 by following Section III instructions 8 to 11. Then continue with line 14. Complete lines 14 through
20 for each column before going on to the next column. Leave all shaded fields blank.
Installment due dates. For calendar year taxpayers, the Installment Due Dates
due dates of the installments are entered for you. If you
are a fiscal year filer, strike through the dates and enter a b c d
the correct installment due dates. See WHEN DO YOU 4/15/21 6/15/21 9/15/21 1/15/22
NEED TO PAY ESTIMATED TAXES? on page 5.

12. Enter the required estimated payments for each column.
See Section III instructions 8 through 10. 12
13. Enter the estimated tax paid and tax withheld. See
Section III instruction 11. 13
14. Enter amount of overpayment, if any, from line 20 of
the previous column. 14
15. Add lines 13 and 14, then enter the sum. 15
16. Enter sum of lines 18 and 19 from the previous column.
16
17. For column a, enter the amount from line 13. For col-
umns b, c, and d, subtract line 16 from line 15. If the
difference is zero or less, enter zero. 17
18. If the amount on line 17 is zero, subtract line 15 from
line 16 and enter the amount. Otherwise, enter zero. 18
19. Underpayment. If line 12 is equal to or more than line
17, subtract line 17 from line 12, enter the amount, and
19
go to line 14 of the next column. Otherwise, go to line 20.
20. Overpayment. If line 17 is more than line 12, subtract
line 12 from line 17. Then go to line 14 of the next column.
20
Page 2 of 7

- 3 -

RPD-41272 (2021)
Rev. 10/01/2021
New Mexico Taxation and Revenue Department
2021 Calculation of Estimated Personal Income Tax Underpayment Penalty
Mark this box if you want the Taxation and Revenue Department to calculate the penalty on underpayment of estimated
personal income tax that you owe. If you mark this box, you do not need to complete Section V or VI. However, you
must complete Sections I through IV or the Department cannot calculate your penalty using an exception method to
calculate estimated tax and you may be assessed a penalty based only on the standard method. If you want to calculate
the penalty yourself, continue with Section V, and VI as necessary.

Section V: Calculate the penalty you owe on underpayment of estimated installment payments. At the top of the column
indicate the Quarter (1, 2, 3 or 4) in which an underpayment occurred from line 19, Section IV. If you have multiple late payments
in one quarter, add extra columns for the quarter. For example, if you made two payments after the first quarter was due, use
the first two columns a and b, and enter 1 next to “Quarter” at the top of each column. Calculate each late payment for a quarter
in a separate column. For additional columns, use Section VI. When completing line 21 for subsequent columns in one quarter,
subtract the previous payment for the quarter from the underpayment of estimated tax for the quarter (line 19, Section IV).

___ Quarter ___ Quarter ___ Quarter ___ Quarter
a b c d
21. Enter the underpayment of estimated tax for the quarter from
line 19, Section IV. If more than one payment is made for a
quarter, reduce this line by the payment made in the other
column for that quarter. 21

22. Enter the due date of the installment from the table in Section IV. 22

23. Enter the date the underpayment on line 21 was paid or the
15th day of the fourth month after the close of the tax year,
whichever is earlier. For details, see HOW INSTALLMENT
PAYMENTS ARE APPLIED on page 6. 23

24. Enter the number of days from the installment due date (line
22) to the date on line 23. 24

25. Number of days on line 24 after 4/15/2021 and before 7/1/2021. 25

26. Underpayment on line 21 X number of days on line 25 X ___%3 =
365 26

27. Number of days on line 24 after 6/30/2021 and before 10/1/2021. 27

28. Underpayment on line 21 X number of days on line 27 X ___%3 = 28
365

29. Number of days on line 24 after 9/30/2021 and before 1/1/2022. 29

30. Underpayment on line 21 X number of days on line 29 X ___%3 =
365 30

31. Number of days on line 24 after 12/31/2021 and before 4/15/2022. 31

32. Underpayment on line 21 X number of days on line 31 X ___% =
365 32

33. For each column, add lines 26, 28, 30, and 32 then enter the
sum. 33

34. Add columns a through h of line 33 in Sections V and VI, and enter the total. This is
your total penalty on underpayment of estimated income tax. 34
Page 3 of 7

- 4 -

RPD-41272 (2021)
Rev. 10/01/2021 New Mexico Taxation and Revenue Department
2021 Calculation of Estimated Personal Income Tax Underpayment Penalty

Section VI: Calculate the penalty you owe on underpayment of estimated installment payments. Continued from Section
V. At the top of the column indicate the Quarter (1, 2, 3 or 4) in which an underpayment occurred from line 19, Section IV.

If you have multiple late payments in one quarter, add extra columns for the quarter. For example, if you made two payments
after the first quarter was due, use the first two columns a and b, and enter 1 next to “Quarter” at the top of each column.
Calculate each late payment for a quarter in a separate column. When completing line 21 for subsequent columns in one
quarter, subtract the previous late payments for the quarter from the underpayment of estimated tax for the quarter (line 19,
Section IV).

___ Quarter ___ Quarter ___ Quarter ___ Quarter
e f g h
21. Enter the underpayment of estimated tax for the quarter from
line 19, Section IV. If more than one payment is made for a
quarter, reduce this line by the payment made in the other
column for that quarter. 21

22. Enter the due date of the installment from the table in Section IV. 22

24. Enter the number of days from the installment due date (line
22) to the date on line 23. 24

25. Number of days on line 24 after 4/15/2021 and before 7/1/2021. 25

26. Underpayment on line 21 X number of days on line 25 X ___%3 =
365 26

27. Number of days on line 24 after 6/30/2021 and before 10/1/2021. 27

3
28. Underpayment on line 21 X number of days on line 27 X ___% = 28
365

29. Number of days on line 24 after 9/30/2021 and before 1/1/2022. 29

30. Underpayment on line 21 X number of days on line 29 X ___%3 =
365 30

31. Number of days on line 24 after 12/31/2021 and before 4/15/2022. 31

32. Underpayment on line 21 X number of days on line 31 X ___% =
365 32

33. For each column, add lines 26, 28, 30, and 32 then enter the
sum. 33

Add columns a through h of line 33 in Sections V and VI, and enter the total on PIT-1, Section V,
line 34. This is your total penalty on underpayment of estimated income tax.
Page 4 of 7

- 5 -

RPD-41272 (2021)
Rev. 10/01/2021
New Mexico Taxation and Revenue Department
2021 Calculation of Estimated Personal Income Tax Underpayment Penalty
Instructions
WHO MUST PAY ESTIMATED TAXES AND WHAT the standard method and sends you an assessment for the
PENALTIES APPLY? penalty due if any of the following are true:
Every individual who must file a New Mexico Personal In- • You fail to, or incorrectly complete the box on PIT-1, line
come Tax (PIT-1) return under the Income Tax Act also must 34.
pay estimated income tax. This occurs through withholding
• You do not submit form RPD-41272, with your PIT-1
taxes or by making estimated tax payments using the Per-
return.
sonal Income Estimated Tax Payment Voucher (PIT-ES).
You can also pay by check or credit card using the Taxation • You submit an incomplete or inaccurate RPD-41272.
and Revenue Department’s website. • You do not qualify for an exception method.

There is a penalty for underpayment or nonpayment of DESCRIPTIONS OF EXCEPTIONS, NUMBER TO ENTER
estimated tax, unless: IN ON PIT-1, AND HOW TO CALCULATE ENTRIES FOR
• You are a first-year resident; LINES 12 AND 13 ON RPD-41272
Each exception is described here. The last paragraph of each
• Your tax for the current year, less total rebates and credits,
description shows the number you must enter in the box on
less income tax withheld is under $1,000; or
PIT-1, line 34, to indicate your qualification for the exception
• You are a full-year New Mexico resident whose previous method. Section III of RPD-41272 provides instructions for
tax year was a 12-month tax year and you owed zero tax completing lines 12 and 13 in Section IV, which are critical
for that tax return. in calculating penalties based on exceptions.

WHEN DO YOU NEED TO PAY ESTIMATED TAXES? Exception for applying actual tax withholding dates.
For most calendar-year taxpayers, four installments of the re- This exception applies to taxpayers who estimate payments
quired annual payment are due (postmark or delivery service according to the actual dates when all amounts of withhold-
date) by April 15, June 15, September 15, and January 15. ing tax were withheld for the applicable tax year.

For taxpayers reporting on a fiscal year other than a cal- NOTE: Unless you show the dates on which all amounts
endar year, payments are due on or before the 15th day of were actually withheld on RPD-41272, the Taxation and
the fourth, sixth, and ninth months of the tax year and on or Revenue Department considers an equal amount of tax with-
before the 15th day of the first month of the following year. held as tax paid on each payment due date. This provision
may apply separately to wage and pension withholdings and
Sometimes a due date for an estimated payment is a Sat- any other amounts withheld under the Withholding Tax Act.
urday or a Sunday, or a state or national legal holiday. The
estimated payment is on time when the postmark bears the Enter 1 if you want to calculate estimated payments based
date of the next business day. Delivery by a private deliv- on the actual dates on which all amounts of withholding tax
ery service is on time if the pick-up date is on or before the were withheld for the applicable tax year.
required due date.
Exception for income that varies during the year. This ex-
WHO MUST FILE RPD-41272 ception applies to taxpayers who receive seasonal income.
RPD-41272 can be used to help calculate the underpayment You may only use this method if actual income through
penalty, but do not submit the form unless: March 31 is too small to require an estimated payment.
• You qualify for a exception method of determining the When your base income increases in later periods, you must
amount and timing of the estimated tax payment, and make higher estimated payments to balance your account.
• You will owe less penalty by using the exception method.
No payment is due for the first quarter, because actual in-
Only taxpayers who may lower their penalty using an excep- come through March 31 is too small to require an estimated
tion method submit RPD-41272. payment. Subsequent test dates to check income for esti-
mated payments are May 31, August 31, and December 31.
To calculate an underpayment or non-payment penalty us-
ing the exception method for estimated personal income Enter 2, 3, or 4 to show the quarter of the payment if your
tax, you must enter 1, 2, 3, 4, or 5 in the box on line 34, income varies and you are required to file estimated pay-
PIT-1. If the box is blank, the penalty is calculated using the ments beginning with the 2nd, 3rd, or 4th quarter due date.
standard method.
Exception for farmers and ranchers. The law provides a
When the Department uses the standard method. The special rule, identical to the federal rule, for farmers and
Department automatically calculates your penalty using ranchers who expect to receive at least 2/3 of their gross
Page 5 of 7

- 6 -

RPD-41272 (2021)
Rev. 10/01/2021 New Mexico Taxation and Revenue Department
2021 Calculation of Estimated Personal Income Tax Underpayment Penalty
Instructions

income from farming or ranching, or who received at least total withholding tax and estimated taxes you paid.
2/3 of their gross income from farming or ranching in the
prior year. Section IV. After completing lines 12 and 13 for all four col-
umns, go to column anda complete lines 17, 19, and 20.
Farmers and ranchers who meet the gross income test may: Then go to columns b and c and complete lines 14 to 20. In
• Make one estimated payment in the amount of the re- column d, complete lines 14 to 17, 19, and 20.
quired annual payment on or before January 15 of the
year following the tax year of the return, or Requesting the Department to Calculate the Penalty.
Mark the box at the top of the page of Section V, if you want
• File and pay taxes in full on or before March 1 of the year
the Department to calculate the penalty on underpayment of
following the tax year of the return.
estimated personal income tax that you owe. If you mark the
box, you do not need to complete Section V or VI. However
For joint returns, the farmer or rancher must count the
you must complete Sections I through IV, or the Department
spouse’s gross income to determine whether the couple
cannot calculate your penalty using an exception method.
meets the two-thirds-of-gross income test.
Enter 5 if you are a farmer or rancher and meet these re- Sections V and VI. Calculate your penalty payment for each
quarter in a separate column as described in lines 21 to 34.
quirements. Even if you do not owe an underpayment penalty
At the top of the column indicate the Quarter (1, 2, 3 or 4) in
because you filed and paid the tax in full on or before March
which an underpayment occurred from line 19, Section IV.
1 of the year following the tax year of the return, make this
entry.
Multiple Payments For a Quarter
HOW MUCH DO YOU NEED TO PAY? If you have multiple late payments for any quarter, add extra
To calculate your estimated tax, start with the required an- columns for the quarter. For example, if you made two pay-
nual payment or the total amount of estimated tax to pay ments after the first quarter payment was due, use the first
during the tax year. Then determine the amount and due two columns, a and b, and enter 1 next to “Quarter” at the top
date for each estimated tax payment. of each column. Calculate each late payment for a quarter in
a separate column. For additional columns, use Section VI.
The required annual payment is the lesser of:
When completing line 21 for subsequent columns in the
• 90% of the tax on the current year’s return (or, if no return
same quarter, subtract the previous payment(s) for the quar-
is filed, the tax for the taxable year), or
ter from the underpayment of estimated tax for the quarter
• 100% of the tax on the prior year’s return, if you filed a (line 19, Section IV). In Section V, line 34 enter your total
return during the prior year for a full 12-month year. penalty on underpayment of estimated income tax.

NOTE: Always use the instructions specifically written for the HOW INSTALLMENT PAYMENTS ARE APPLIED
tax year you are filing. The line numbers and the calculation The Department credits a payment of estimated tax against
of estimated tax may change from year to year. unpaid or underpaid installments in the order in which the
installment is required to be paid. Therefore, an installment
HOW TO COMPLETE THIS FORM payment is applied first to the earliest installment payment
If have an exception and you want the Department to calcu- due. Any balance is applied to the next installment payment
late the penalty for you, complete Sections I through IV and due.
mark the box at the top of page 3. If you want to calculate
the penalty yourself, also complete Section V, and if appli- PENALTY TIME FRAMES
cable, Section VI. The penalty for underpayment or non-payment of estimated
tax is based on the difference between the estimated tax
Section I. If you qualify for one of the exception methods, payment and the actual amount of estimated tax due.
mark the appropriate box. Penalty accumulates from the due date of the estimated tax
Section II. Calculate your required annual payment as de- payment until the earlier of:
scribed in lines 2 to 7. Line 7 shows your required annual • The date the payment is made, or
payment.
• The 15th day of the fourth month following the close of

the tax year.
Section III. These are the instructions for lines 12 and 13
in Section IV. For line 12, use instructions 8, 9, and 10 to
PENALTY BASED ON INTEREST RATES
calculate the amount of the estimated tax payments you owe New Mexico calculates penalty in the form of interest on un-
on different dates. For line 13, use instruction 11 to show the derpayment of estimated tax. The penalty is calculated at the
Page 6 of 7

- 7 -

RPD-41272 (2021)
Rev. 10/01/2021 New Mexico Taxation and Revenue Department
2021 Calculation of Estimated Personal Income Tax Underpayment Penalty
Instructions

annual rate established each quarter for individual income The electronic check authorizes the Department to debit your
tax purposes under the U.S. Internal Revenue Code (IRC). checking account in the amount and on the date you specify.
IRC rate changes quarterly. The Internal Revenue Service
announces the IRC rate for each quarter in the last month You may also a credit card for your online payment. A con-
of the previous quarter. You can check the interest rates for venience fee is applied for using a credit card. The State
each quarter on our website at http://www.tax.newmexico. of New Mexico uses this fee, calculated on the transaction
gov/Individuals/penalty-interest-rates.aspx. amount, to pay charges from the credit card companies.

Special rule for personal income tax. When calculating Pay by mail. You can pay by mail by sending a check or
the underpayment penalty, the interest rate that applies to money order for the payment amount to the Department
the first quarter following the tax year also applies to the first along with the PIT-ES payment voucher. To pay by mail,
15 days of the fourth month (April) following the tax year. follow the voucher and mailing requirements described next.

CALCULATION OF PENALTY FOR PERIOD LATE USING THE PIT-ES PAYMENT VOUCHER
The formula used in lines 26, 28, 30, and 32 of Sections V You can get the PIT-ES voucher from your personal income
and VI to calculate the penalty for the period late is: tax packet, the Department website, one of the Department’s
district offices, or from your tax return preparation software.
effective annual
Underpay- X number of days late X interest rate Show the correct tax year for this payment. For the
ment due total days in the year for the quarter Department to apply your estimated payment to the correct
tax year, the PIT-ES must show the tax year for which you
NOTE: The penalty for underpayment of estimated tax may are making payment. On the payment voucher from the
exceed 20% of the tax due. Department website, write in the tax year. Make sure each
payment voucher shows the correct tax year.
HOW TO AVOID A PENALTY
If you file a return and pay the full amount on or before If you are a calendar-year filer making an estimated payment
January 31 of the next year, no penalty applies to the 4th for a 2021 tax return due in 2021, make sure the date on
estimated payment. your PIT-ES payment voucher shows tax year 2021. If you
wish to make an estimated payment for your 2021 tax return
If the balance due is $1,000 or more, the Taxation and Rev- due in 2022, the date on your PIT-ES payment voucher must
enue Department determines whether the required annual indicate tax year 2021.
payment was made in timely installments. If it was, there is
no penalty. Final steps for mailing your penalty payment. On the
check or money order, write:
If the required annual payment was not made in timely install- • Your social security number
ments, the Department calculates the underpayment penalty
• PIT-ES
and issues an assessment. If you believe an assessment is
in error, you can protest the assessment and provide more • The tax year of the return for which the payment applies
information.
Using your own envelope, enclose the check or money
METHODS OF PAYMENT order, and the completed PIT-ES payment voucher. Mail
You can pay online using an electronic check or credit card, the envelope to:
or by mail using a check or money order.
NM Taxation and Revenue Dept.
Pay online. You may submit a payment with the payment P.O. Box 8390
voucher by mail or pay estimated personal income taxes Santa Fe, NM 87504-8390
online at no charge by electronic check through Taxpayer
Access Point (TAP). Go to https://tap.state.nm.us and under
GENERAL TASKS, click Make a Payment, then Individual.

Page 7 of 7

PDF file checksum: 3309405939

(Plugin #1/9.12/13.0)