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2023 Schedule M15NP Instructions
Installment Methods
Generally, you would choose the standard installment method unless your income varied during the year. If your income varied, see
Alternative Methods on this page.
Check the appropriate box to indicate the installment method being used.
Required Annual Payment
Line 3
Enter the amount from line 1 or line 2, whichever is less, unless one of the following exceptions apply:
Exceptions: You must enter the amount from line 1 on line 3, if any of the following exceptions apply:
• You did not file a 2022 return
• You filed a return for less than a full 12-month period in the preceding tax year
• You did not have a 2022 tax liability
[Minnesota Statute, Chapter 289A.26, subdivision 7(2)].
Figuring the Underpayment
Line 4
The due dates of the installments are the 15th day of the third, sixth, ninth and 12th months of the 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 5
Each required installment is 25% of the amount on line 3 unless you use an alternative method (see Alternative Methods).
To determine the amount of each required installment for a short taxable year, divide the amount on line 3 by the number of installments due.
Line 6
In the first column, enter payments made by the 15th day of the third month of the tax year. Include any overpayment from your 2022 return
that was credited to your 2023 estimated tax account. For each of the other columns, enter payments made after the previous column’s due
date and by that column’s due date shown on line 4.
Computing the Additional Charge
Lines 14 through 17
Payments of estimated tax are applied against any underpayments of required installments in the order that the installments were due.
For example, if your first-quarter installment is underpaid by $100 and you deposit $200 for your second-quarter installment, $100 of your
second-quarter payment is applied to the first quarter. The additional charge for the first quarter is computed from the first-quarter due date to
the date the second-quarter payment is made.
Also, the second-quarter installment will then be underpaid by $100 (assuming that the second-quarter’s required installment is $200) until
sufficient payments are received to eliminate the underpayment.
If more than one payment has been made for a required installment, attach a separate computation for each payment.
Alternative Methods
If your income varied during the year, there are two alternative methods of determining the required installment:
• Adjusted Seasonal Installment Method
• Annualized Income Installment Method
To use one or both of these methods to figure one or more required installments, complete Schedule A of federal Form 2220 and make the
following adjustments for Minnesota tax purposes.
Lines 1a, 1b, 1c and 2. Column (a) of these lines should include income for the first two months of each tax year.
Lines 3a, 3b and 3c. Column (a) of these lines should include income for the first three months of each tax year.
Line 10. Use the tax rate of 9.8%.
Line 20. Enter your Minnesota annualization periods, using the following:
• In Column (a), enter 2.
• In Column (b), enter either 2 or 5.
• In Column (c), enter either 6 or 8.
Continued
• In Column (d), enter either 9 or 11. 1
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