Form Rpd-41272 12 - Calculation Of Estimated Personal Income Tax Underpayment Penalty - State Of New Mexico Taxation And Revenue Department - 2012 Page 4
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5RPD-41272 12
Rev. 12/3/2012
New Mexico Taxation and Revenue Department
2012 Calculation of Estimated Personal Income Tax Underpayment Penalty
Instructions
Page 1 of 2
WHO MUST MAKE ESTIMATED PAYMENTS?
HOW TO REPORT A SPECIAL METHOD OF CALCULATION
Every individual who must file a personal income tax return
OF ESTIMATED PERSONAL INCOME TAX UNDERPAY-
under the Income Tax Act also must pay estimated income
MENT PENALTY.
tax. The way to do this is through either withholding or esti-
If you qualify for a special method of calculating estimated per-
mated tax payments. There is a penalty for underpayment
sonal income tax underpayment penalty, you may reduce your
penalty by filing Form RPD-41272 12, 2012 Calculation of Es-
or nonpayment of estimated tax.
timated Personal Income Tax Underpayment Penalty with your
There is no penalty for underpayment of estimated income
PIT-1 return. You must also mark the indicator box on Form PIT-1
tax if:
2012 as instructed below. If you submit an incomplete or inac-
• You are a first-year resident;
curate Form RPD-41272 12, or you do not follow the directions
• The tax (net New Mexico income tax less total rebates
for completing the indicator box on Form PIT-1, the Department
and credits) shown on your return for the current year, less
will determine any estimated personal income tax penalty due
total income tax withheld on Form PIT-1, is under $1,000;
based on the standard method.
• Your tax liability for the tax year is less than $1,000; or
• You are a full-year New Mexico resident whose previous
HOW TO COMPLETE THE INDICATOR BOX ON LINE 34,
tax year was a 12-month tax year and you owed zero tax
FORM PIT-1 2012.
for your preceding tax return.
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
HOW MUCH ESTIMATED TAX SHOULD YOU PAY?
of underpayment of estimated tax penatly or your estimated per-
To calculate estimated tax, first determine the “required an-
sonal income tax underpayment penalty will be calculated using
nual payment” or the total amount of estimated tax to be paid
the standard method. Enter 1 if you wish to compute estimated
during the tax year.
payments based on the actual dates on which all amounts of with-
The required annual payment is the lesser of:
holding tax were withheld for the applicable tax year. If you have
•
90% of the tax on the current year’s return (or the tax
annualized income and are required to file estimated payments
for the year if no return is filed), or
beginning with the 2nd, 3rd, or 4th quarter estimated installment
•
100% of the tax on the prior-year return, but only if you
due date, enter 2, 3, or 4 respectively. If you qualify for special
filed a return for a full 12-month year.
rules because you are a farmer or rancher, enter 5. Note: Enter
When you have figured the required annual payment, then
5, even when you filed and paid the tax due by March 1, 2013.
determine the amount and timing for each estimated tax
HOW TO COMPLETE THIS FORM.
installment payment.
To calculate estimated tax using this form, first determine the
“required annual payment” in Section II. When you have figured
WHEN IS EACH INSTALLMENT PAYMENT DUE?
Generally, four equal installments of the required annual
the required annual payment, determine the amount and timing
payment are due on or before the 15th day of the fourth,
for each estimated tax installment payment in Sections III and IV.
sixth, and ninth months of the tax year and the first month of
Use Section V to compute the penalty on underpayment of esti-
the following year. For most calendar-year taxpayers those
mated installment payments. If you have multiple payments for
dates are:
any quarter, the column for the quarter will need to be repeated.
April 15
June 15
Each payment for a quarter should be computed in a separate
September 15
January 15
column. A spreadsheet can be attached that is in the same format
Sometimes a due date for an estimated payment is a Satur-
as Section V. When completing line 21, for subsequent columns
day, Sunday, state or national legal holiday. The estimated
for the same quarter, subtract the previous payment(s) for the
payment is timely when the postmark bears the date of the
quarter from the underpayment of estimated tax for the quarter
next business day. Delivery by a private delivery service is
(line 19, Section IV).
timely if the date on the delivery service records is on or
If you wish the Department to calculate the penalty for you,
before the required mailing date.
complete Sections I through IV, mark the box on page 3 of Form
RPD-41272 12, and follow the instructions for reporting the special
SPECIAL RULES APPLY TO CERTAIN TAXPAYERS.
calculation method.
There are exceptions to the general rules for determining the
timing and amount of each estimated installment payment
HOW INSTALLMENT PAYMENTS ARE APPLIED. A payment
and for determining receipt of estimated payments.
of estimated tax is credited against unpaid or underpaid install-
Each exception is described on page 2 of these instructions.
ments in the order in which the installment is required to be paid.
If one of the special rules applies, you may use a special
Therefore, an installment payment is applied first to the earliest
method of calculating penalty on underpayment of estimated
installment payment due. Section IV, computes the underpayment
income tax by using Form RPD-41272 12, 2012 Calculation
on line 19, applying each payment first to any balance due on a
prior underpaid installment.
of Estimated Personal Income Tax Underpayment Penalty.
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