Form RPD-41272 Calculation of Estimated Personal Income Tax Underpayment Penalty

100% of the tax on the prior year return but only if you 90% of the tax on the current year s return (or the tax Enter the sum of lines 18 and 19 from previous column If the amount on line 17 is zero subtract line 15 from line 16; otherwise enter zero Overpayment If line 17 is more than line 12 subtract line 12 from line 17 Then go to line 14 of the next column required annual payment on or before January 15 of the year following the tax year of the return or 2) file and pay in full on or before March 1 of the year September 15 January 15 Subtract line 16 from line 15 If zero or less enter zero For column (a) only enter the amount from line 13 Underpay X number of days late X effective annual ment due total days in the year interest rate for the quarter Underpayment If line 12 is equal to or more than line 17 subtract line 17 from line 12 Then go to line 14 of the next column; otherwise go to line 20 19 (a) (b) (c) (d) (a)(b)(c)(d) 1 I may elect to use an alternative method of computing estimated tax due because (check one): 1/15/13 INSTALLMENT PAYMENT DUE? in the instructions 10 Farmers or Ranchers: If you are a qualified farmer or rancher enter 100% of the required annual payment on line 12 column (d) and go to line 11 NOTE: Mark 5 on Form PIT 1 indicating the special method allowed for calculation of underpayment of estimated tax penalty and attach Form RPD 41272 to the return 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 Complete Sections I through IV and enter zero on page 3 line 34 11 Total withholding tax and estimated tax paid To complete line 13 divide the tax withheld for the 2012 tax year by four and add an equal amount of tax withheld to the estimated tax paid per payment period If you elect to compute estimated installment payments based on the actual dates on which all amounts of withholding tax were withheld for the applicable year enter the total taxes withheld for the quarter in columns (a) through (d) based on the actual date the amounts were withheld Then for each column enter the total tax withheld prior to the date above the column if it was a calendar tax year and the equivalent payment period due date if it was a fiscal year For columns (b) (c) and (d) do not include amounts withheld and reported in the previous column Include amounts carried forward from the prior year personal income tax return in column (a) 12 month New Mexico PIT 1 return for tax year 2011 NOTE: If you are a 12 Required estimated payments See instructions 8 13 Estimated tax paid and tax withheld See instruction 11 14 Enter amount of overpayment if any from line 20 of 2012 Calculation of Estimated Personal Income Tax Underpayment Penalty 2012 Calculation of Estimated Personal Income Tax Underpayment Penalty 2012 Calculation of Estimated Personal Income Tax Underpayment PenaltyInstructions 21 Enter the underpayment of estimated tax for the quarter from line 19 Section IV 22 Enter the due date of the installment from the table in Section IV 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 See HOW INSTALLMENT PAYMENTS ARE APPLIED in the instruc tions 24 Number of days from the due date of the installment (line 22) to the date shown on line 23 25 Number of days on line 24 after 4/16/2012 and before 7/1/2012 26 Underpayment on line 21 X Number of days on line 25 X % = 27 Number of days on line 24 after 6/30/2012 and before 10/1/2012 28 Underpayment on line 21 X Number of days on line 27 X % = 29 Number of days on line 24 after 9/30/2012 and before 1/1/2013 30 Underpayment on line 21 X Number of days on line 29 X % = 31 Number of days on line 24 after 12/31/2012 and before 4/15/2013 32 Underpayment on line 21 X Number of days on line 31 X % = 33 For each column add lines 26 28 30 and 32 34 Add columns (a) through (d) of line 33 Enter the total here This is your total penalty on underpayment of estimated income tax 4/16/12 6/15/12 9/17/12 5 even when you filed and paid the tax due by March 1 2013 7 Enter the lesser of lines 5 and 6 This is your required annual payment 8 Standard Method: If you were required to make estimated tax payments on or before March 31 multiply the required annual payment line 7 by 25% (0 25) Enter this amount on line 12 in each of the columns in the table below and go to line 11 Skip lines 9 and 10 9 Annualized Income Method: If you did not have income sufficient to require a payment until after March 31 review lines 9a 9b and 9c and complete line 12 according to the instructions that apply Then go to line 11 Skip line 10 9a If you were required to make estimated tax payments after March 31 but before June 1 multiply the required annual payment line 7 by 50% and enter on line 12 column (b) Multiply the required annual payment line 7 by 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 line 7 by 75% and enter that amount on line 12 column (c) Then multiply the required annual pay ment line 7 by 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 pay ment line 7 on line 12 column (d) A convenience fee of 2 49% is required to use this service The fee reimburses the state for fees charged by the credit card company a specific period the taxpayer may have to make up later in Add lines 13 and 14 ALTERNATIVE METHODS FOR CALCULATION OF ES TIMATED PERSONAL INCOME TAX Annualized income Taxpayers with seasonal income can and credits) shown on your return for the current year less total income tax withheld on Form PIT 1 is under $1 000; and timing of their estimated payments If a taxpayer does not have annualized income based on actual income received annualized income and are required to file estimated payments April 15 June 15 Beginning January 1 2008 the interest rate is reduced to the annual rate established each quarter for individual income tax purposes under the U S Internal Revenue Code (IRC) The IRC rate for each three month period is announced by the IRS in the last month of the previous quarter The annual rate for each quarter will be updated as the information is released The annual and daily interest rates for the each quarter will also be posted on the Department s web site beginning with the 2nd 3rd or 4th quarter estimated installment due date enter 2 3 or 4 respectively If you qualify for special rules because you are a farmer or rancher enter 5 Note: Enter cal year filer strike through the dates entered and enter Check here if you wish the Department to compute the penalty on underpayment of estimated personal income tax that you owe If you choose to have the Department compute the penalty you do not need to complete Section V You must complete Sections I through IV however or the Department cannot calculate your penalty using an alternative method of computing estimated tax and you may be assessed based on the standard method To compute the penalty continue with Section V Column 1 (2011) Column 2 (2012) Complete rows 12 and 13 according to the instructions 8 through 11 above Then continue with line 14 Complete lines 14 dates are: Department s web site one of the Department s district offices due dates of the installments are entered for you If a fis Each exception is described on page 2 of these instructions If one of the special rules applies you may use a special method of calculating penalty on underpayment of estimated income tax by using Form RPD 41272 12 2012 Calculation of Estimated Personal Income Tax Underpayment Penalty ed installment payments Complete this section to calculate the penalty you owe Enter the amount of column 1 line 4 in column 2 line 6 If you did not complete column 1 or if column 1 line 4 is a negative number enter zero Enter the amounts from the New Mexico personal income tax forms and schedules for the tax year shown at the top of Every individual who must file a personal income tax return Farmers and Ranchers The law provides a special rule identical to the federal rule for farmers and ranchers who expect to receive at least two thirds of their GROSS income from farming or ranching or who received at least two thirds of their GROSS income from farming or ranching in the prior year Farmers and ranchers who meet the gross income test may: 1) make one estimated payment in the amount of the filed a return for a full 12 month year When you have figured the required annual payment then determine the amount and timing for each estimated tax installment payment first year resident in 2012 you are not required to make estimated payments following the tax year of the return On joint returns the farmer or rancher must consider the spouse s gross income in determining whether the two thirds of gross income test is met For column 1 enter the amount from line 20 Form 2011 PIT 1 For column 2 enter amount of Net New Mexico income tax from Form 2012 PIT 1 For column 1 enter the sum of the amounts reported on lines 21 and 22 of Form 2011 PIT 1 For column 2 enter the sum of rebates and credits from Form 2012 PIT 1 plus any working families tax credit claimed for the year if no return is filed) or Form 2012 PIT 1 for the tax year is less than $1 000 You do not owe the penalty Do not file this form HOW INSTALLMENT PAYMENTS ARE APPLIED A payment of estimated tax is credited against unpaid or underpaid install ments in the order in which the installment is required to be paid HOW MUCH ESTIMATED TAX SHOULD YOU PAY? HOW TO CALCULATE THE PENALTY FOR UNDERPAY MENT OR NONPAYMENT OF ESTIMATED PERSONAL INCOME TAX HOW TO COMPLETE THE INDICATOR BOX ON LINE 34 FORM PIT 1 2012 HOW TO COMPLETE THIS FORM HOW TO PAY AN ESTIMATED INSTALLMENT PAYMENT HOW TO REPORT A SPECIAL METHOD OF CALCULATION OF ESTIMATED PERSONAL INCOME TAX UNDERPAY MENT PENALTY HOW TO USE THIS FORM You need to complete this form only if you have elected to use an alternative method of computing estimated tax due If you do not elect to use an alternative method the Department will compute your liability if any using the standard method and will send you an assessment for penalty due Alternative methods of computing estimated tax are described on page 2 of the instructions If one of the alternative methods for calculation of penalty on underpayment of estimated income tax applies to you complete this form and attach it to your 2012 New Mexico PIT 1 form You must also mark the indicator box on Form PIT 1 If you do not need to file this form you may use it to calculate penalty but do not submit this form to the Department See also Publication FYI 320 PIT ES: Personal Income Tax Estimated Payments for a complete explanation of calculating estimated personal income tax and how to make estimated personal income tax payments I am a farmer or rancher who expects to receive two thirds of gross income for 2012 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; or I wish to compute estimated payments based on the actual dates on which all amounts of withholding tax were withheld for tax year 2012 If the balance due is $1 000 or more the Department first de termines if the required annual payment was made in timely installments If it was not the Department calculates the un derpayment penalty and issues an assessment If you believe an assessment is in error you can protest the assessment and provide more information If you have multiple payments for any quarter the column for the quarter will need to be repeated Each payment for a quarter should be computed in a separate column A spreadsheet can be attached that is in the same format as Section V When completing line 21 for subsequent columns for the same quarter subtract the previous payment(s) for the quarter from the underpayment of estimated tax for the quarter (line 19 Section IV) If you qualify for a special method of calculating estimated per sonal income tax underpayment penalty you may reduce your If you qualify you must enter 1 2 3 4 or 5 in the indicator box on Form PIT 1 indicating a special method allowed for calculation of underpayment of estimated tax penatly or your estimated per sonal income tax underpayment penalty will be calculated using the standard method Enter 1 if you wish to compute estimated payments based on the actual dates on which all amounts of with holding tax were withheld for the applicable tax year If you have If you wish the Department to calculate the penalty for you complete Sections I through IV mark the box on page 3 of Form RPD 41272 12 and follow the instructions for reporting the special calculation method Individuals who wish to compute estimated installment payments based on the actual dates on which all amounts of withholding tax were withheld for the applicable tax year The New Mexico income tax deducted and withheld by an employer is a payment of estimated tax An equal amount of the tax withheld shall be considered as paid on each install ment due date unless the taxpayer establishes the dates on which all amounts were actually withheld This provision may be applied separately to wage and pension withholding and other amounts withheld under the Withholding Tax Act Installment Due Dates Installment due dates For calendar year taxpayers the installment payment due Section IV computes the underpayment is required The test dates for subsequent payments are May 31 August 31 and December 31 Based on actual income received if a taxpayer is not required to make a payment for January 31 of the following year Multiply column 2 line 4 by 90% (0 90) and enter here My income varied during the year and I was not required to pay estimated personal income tax until after March 31 2012; (Both statements must be true ) New Mexico calculates penalty (in the form of interest) on underpayment of estimated tax at the annual rate established each quarter for individual income tax purposes under the New Mexico Taxation and Revenue Department New Mexico Taxation and Revenue Department New Mexico Taxation and Revenue Department No penalty applies to the fourth estimated payment if the tax NOTE: A special rule applies for computing the underpayment penalty for personal estimated income tax The interest rate that applies to the 1st quarter following the tax year also applies to the 1st 15 days of the 4th month (April) following the tax year NOTE: No penalty is imposed if the difference between line 4 in column 2 of Section II and tax withheld and reported on on line 19 applying each payment first to any balance due on a or from your tax return preparation software Ensure that your form indicates the correct tax year on the PIT ES To ensure your payment is applied to correctly the form must indicate the correct tax year which you wish to make an estimated payment For example if you are making an estimated payment for your 2012 tax return due in 2013 make certain that your PIT ES form indicates the 2012 tax year Write your social security number and the tax year of the return to which the payment applies on the check or money order Make the payment payable to New Mexico Taxation and Revenue Department and mail with Form PIT ES to: P O Box 8390 Page 1 of 2 Page 1 of 3 Page 2 of 2 Page 2 of 3 Page 3 of 3 payer files a return and pays the entire amount on or before penalty by filing Form RPD 41272 12 2012 Calculation of Es timated Personal Income Tax Underpayment Penalty with your PIT 1 return You must also mark the indicator box on Form PIT 1 2012 as instructed below If you submit an incomplete or inac curate Form RPD 41272 12 or you do not follow the directions for completing the indicator box on Form PIT 1 the Department will determine any estimated personal income tax penalty due based on the standard method prior underpaid installment Santa Fe NM 87504 8390 Section I: Mark the box below that applies to you Refer to Alternative Methods on page 2 of the instructions for further details Section II: Calculate the required annual payment Section III: Calculate the amount and timing of the required estimated tax payments due: Section IV: Calculate the underpayment Section V: Compute the penalty on underpayment of estimat 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr sixth and ninth months of the tax year and the first month of Sometimes a due date for an estimated payment is a Satur day Sunday state or national legal holiday The estimated payment is timely when the postmark bears the date of the next business day Delivery by a private delivery service is timely if the date on the delivery service records is on or before the required mailing date SPECIAL RULES APPLY TO CERTAIN TAXPAYERS Subtract line 3 from line 2 and enter here If the difference between the amount on this line column 2 and the income tax withheld on Form 2012 PIT 1 is less than $1 000 stop here You do not owe the penalty Do not file this form See note under How to Use this Form above tax year was a 12 month tax year and you owed zero tax for your preceding tax return the 15th day of the fourth month following the close of the tax year the column Do not complete the column for 2011 if you did not file a full the correct installment due dates See WHEN IS EACH the date the payment is made or the following year For most calendar year taxpayers those the previous column the required annual payment determine the amount and timing for each estimated tax installment payment in Sections III and IV The required annual payment is the lesser of: The tax (net New Mexico income tax less total rebates the year for not paying the earlier installment See Publication FYI 320 PIT ES: Personal Income Estimated Tax Payments for more information on how to compute Annualized Income There are exceptions to the general rules for determining the timing and amount of each estimated installment payment and for determining receipt of estimated payments There is no penalty for underpayment of estimated income tax if: Therefore an installment payment is applied first to the earliest through 10 through 20 for each column before going on to the next column Do not complete fields that are shaded through March 31 sufficient to require a payment no payment To calculate estimated tax first determine the required an nual payment or the total amount of estimated tax to be paid during the tax year To calculate estimated tax using this form first determine the required annual payment in Section II When you have figured to complete this line To make an estimated installment payment by check obtain the PIT ES Form from your personal income tax packet the U S Internal Revenue Code (IRC) Penalty is computed on a daily basis for each day the payment is late The formula for calculating penalty is: under the Income Tax Act also must pay estimated income tax The way to do this is through either withholding or esti mated tax payments There is a penalty for underpayment or nonpayment of estimated tax Underpayment or nonpayment of estimated tax is subject to penalty on the difference between the estimated tax payment and the actual amount of estimated tax due Penalty accumu lates from the due date of the estimated tax payment until the earlier of: use a modified annualization method to determine the amount Use Section V to compute the penalty on underpayment of esti mated installment payments If you have multiple payments for any quarter the column for the quarter will need to be repeated Each payment for a quarter should be computed in a separate column A spreadsheet can be attached that is in the same format as Section V When completing line 21 for subsequent columns for the same quarter subtract the previous payment(s) for the quarter from the underpayment of estimated tax for the quarter (line 19 Section IV) WHEN IS EACH INSTALLMENT PAYMENT DUE? Generally four equal installments of the required annual payment are due on or before the 15th day of the fourth WHO MUST MAKE ESTIMATED PAYMENTS? You are a first year resident; You are a full year New Mexico resident whose previous You may pay through the Department s web site at www tax newmexico gov Click on Online Services You may pay by electronic check at no charge An electronic check authorizes the Department to debit your checking account in the amount you specify You may also make tax payments via credit card Your tax liability for the tax year is less than $1 000; or