Form Rpd 41272 13 – Fill Out and Use This PDF

RPD-41272 13 Rev. 01/04/2013

New Mexico Taxation and Revenue Department

Print your name (irst, middle, last)

Enter your social security number

12-month New Mexico PIT-1 return for tax year 2012. NOTE: If you are a irst-year resident in 2013, you are not required to make estimated payments.

2.For column 1 enter the amount from line 22, Form 2012 PIT-1. For column 2 enter amount of Net New Mexico income tax from Form 2013 PIT-1.

3.For column 1 enter the sum of the amounts reported on lines 24 and 25

of Form 2012 PIT-1. For column 2 enter the sum of rebates and credits from Form 2013 PIT-1 plus any working families tax credit claimed.

4.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 2013 PIT-1 is less than $1,000, stop here. You do not owe the penalty. Do not ile this form. See note under How to Use this Form, above.

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

6.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.

Column 1 (2012) Column 2 (2013)

2

3

4

5

6

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

7

RPD-41272 13 Rev. 01/04/2013

New Mexico Taxation and Revenue Department

Installment due dates. For calendar year taxpayers, the due dates of the installments are entered for you. If a is- cal year iler, strike through the dates entered and enter

the correct installment due dates. See WHEN IS EACH INSTALLMENT PAYMENT DUE? in the instructions.

12.Required estimated payments. See instructions 8 through 10.

13.Estimated tax paid and tax withheld. See instruction 11 to complete this line.

14.Enter amount of overpayment, if any, from line 20 of the previous column.

15.Add lines 13 and 14.

16.Enter the sum of lines 18 and 19 from previous column.

17.Subtract line 16 from line 15. If zero or less, enter zero. For column (a) only, enter the amount from line 13.

18.If the amount on line 17 is zero, subtract line 15 from line 16; otherwise, enter zero.

19.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.

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.

Installment Due Dates

(a)	(b)	(c)	(d)
4/15/13	6/18/13	9/17/13	1/15/14

12.

13.

14.

15.

16.

17.

18.

19.

20.

RPD-41272 13 Rev. 01/04/2013

New Mexico Taxation and Revenue Department

Section V: Compute the penalty on underpayment of estimat-

ed installment payments. Complete this section to calculate the penalty you owe.

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 4/15/2013 and before 7/1/2013.

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

27.Number of days on line 24, after 6/30/2013 and before 10/1/2013.

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

29.Number of days on line 24, after 9/30/2013 and before 1/1/2014.

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

31.Number of days on line 24, after 12/31/2013 and before 4/15/2014.

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

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.

1st Qtr	2nd Qtr	3rd Qtr	4th Qtr
(a)	(b)	(c)	(d)

21

22

23

24

25

26

27

28

29

30

31

32

33

34

RPD-41272 13 Rev. 01/04/2013

New Mexico Taxation and Revenue Department

Instructions

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WHO MUST MAKE ESTIMATED PAYMENTS?

Every individual who must ile a personal income tax return

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.

There is no penalty for underpayment of estimated income tax if:

•You are a irst-year resident;

•The tax (net New Mexico income tax less total rebates and credits) shown on your return for the current year, less total income tax withheld on Form PIT-1, is under $1,000;

•Your tax liability for the tax year is less than $1,000; or

•You are a full-year New Mexico resident whose previous tax year was a 12-month tax year and you owed zero tax for your preceding tax return.

HOW MUCH ESTIMATED TAX SHOULD YOU PAY?

To calculate estimated tax, irst determine the “required an- nual payment” or the total amount of estimated tax to be paid

during the tax year.

The required annual payment is the lesser of:

•90% of the tax on the current year’s return (or the tax for the year if no return is iled), or

•100% of the tax on the prior-year return, but only if you iled a return for a full 12-month year.

When you have igured the required annual payment, then

determine the amount and timing for each estimated tax installment payment.

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, sixth, and ninth months of the tax year and the irst month of

the following year. For most calendar-year taxpayers those

dates are:
April 15	June 15
September 15	January 15

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.

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.

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 13, 2013 Calculation

of Estimated Personal Income Tax Underpayment Penalty.

HOW TO REPORTASPECIAL METHOD OF CALCULATION OF ESTIMATED PERSONAL INCOME TAX UNDERPAY- MENT PENALTY.

If you qualify for a special method of calculating estimated per- sonal income tax underpayment penalty, you may reduce your penalty by iling Form RPD-41272 13, 2013 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 2013 as instructed below. If you submit an incomplete or inac- curate Form RPD-41272 13, 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.

HOW TO COMPLETE THE INDICATOR BOX ON LINE 31, FORM PIT-1 2013.

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 annualized income and are required to ile estimated payments 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 5, even when you iled and paid the tax due by March 1, 2014.

HOW TO COMPLETE THIS FORM.

To calculate estimated tax using this form, irst determine the “required annual payment” in Section II. When you have igured the required annual payment, determine the amount and timing

for each estimated tax installment payment in Sections III and IV.

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).

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 13, and follow the instructions for reporting the special

calculation method.

HOW INSTALLMENT PAYMENTS ARE APPLIED.

A payment of estimated tax is credited against unpaid or under- paid installments in the order in which the installment is required to be paid. Therefore, an installment payment is applied irst to the earliest installment payment due. Section IV, computes the underpayment on line 19, applying each payment irst to any

balance due on a prior underpaid installment.

RPD-41272 13 Rev. 01/04/2013

New Mexico Taxation and Revenue Department

HOW TO CALCULATE THE PENALTY FOR UNDERPAY- MENT OR NONPAYMENT OF ESTIMATED PERSONAL INCOME 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:

•the date the payment is made, or

•the 15th day of the fourth month following the close of the tax year.

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 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:

Underpay- X	number of days late	X effective annual
ment due	total days in the year	interest rate
		for the quarter

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.

No penalty applies to the fourth estimated payment if the tax- payer iles a return and pays the entire amount on or before January 31 of the following year.

If the balance due is $1,000 or more, the Department irst 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.

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.

HOW TO PAY AN ESTIMATED INSTALLMENT PAYMENT.

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.

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.

To make an estimated installment payment by check, obtain the PIT-ES Form from your personal income tax packet, the

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Department’s web site, one of the Department’s district ofices,

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 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 2013 tax return due in 2014, make certain that your PIT-ES form indicates the 2013 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:

New Mexico Taxation and Revenue Department

P.O. Box 8390

Santa Fe, NM 87504-8390

ALTERNATIVE METHODS FOR CALCULATION OF ES- TIMATED PERSONAL INCOME TAX.

Annualized income. Taxpayers with seasonal income can use a modiied annualization method to determine the amount

and timing of their estimated payments. If a taxpayer does not have annualized income based on actual income received through March 31 suficient to require a payment, no payment 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 a speciic period, the taxpayer may have to make up later in

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.

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 “required annual payment” on or before January 15 of

the year following the tax year of the return, or

2)ile and pay in full on or before March 1 of the year 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.

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.