Form 1-Es - Estimated Tax Payment - Massachusetts Department Of Revenue printable pdf download

2017

Massachusetts

Form 1-ES

Department of

Massachusetts Estimated Income Tax

Revenue

General Information

Are there penalties for failing to pay estimated taxes? Yes. An

additional charge is imposed on the underpayment of any install-

What is the purpose of estimated tax payment vouch ers? The

ment of estimated tax for the period of that underpayment. Use

purpose of the payment vouchers is to provide a means for paying

Form M-2210 when fil ing your annual return to determine the

any taxes due on income which is not subject to withholding. This

amount of any penalty due or if you qualify for the exceptions that

is to ensure that taxpayers are able to meet the statutory require-

avoid the penalty.

ment that taxes due are paid periodically as income is received

during the year. Generally, you must make estimated tax payments

When and where do I file estimated tax payments? Generally,

if you expect to owe more than $400 in taxes on income not sub-

your estimated tax may be paid in full on or before April 15, 2017, or

ject to withholding.

in equal installments on or before April 15, 2017; June 15, 2017;

September 15, 2017; and January 15, 2018. Go to mass.gov/dor/

Who must make estimated tax payments on Form 1-ES?

masstaxconnect for online payment options. If you need to mail

• Individual residents and nonresidents who expect to owe more

your payment, make check or money order payable to the Com-

than $400 in taxes on income not subject to withholding.

monwealth of Massachusetts. Please write your Social Se curity

• Recipients of unemployment compensation who do not choose

number in the lower left corner on your check or money order.

voluntary state withholding on those payments.

Send a completed voucher with each payment to ensure accurate

crediting to your account. Vouchers should be mailed to Mass-

• Pass-through withholding. For tax years beginning on or after

achusetts Department of Revenue, PO Box 419540, Bos ton,

January 1, 2009, pass-through entity withholding of personal

MA 02241-9540. Do not mail your payment with your prior year’s

income tax under M.G.L. c. 62 and corporate excise under M.G.L.

annual return.

c. 63 may be required on behalf of members of a pass-through

entity. For more information, see Pass-Through Entity Withholding

If you pay your full estimated tax with your first payment voucher,

Regulation, 830 CMR 62B.2.2. Members subject to withholding by

you need not file the remaining payment vouch ers unless your

a pass-through entity may reduce their estimated payment by

income increased during the year and you need to increase your

amounts previously withheld and paid by the pass-through entity,

estimated payment amount.

as described in 830 CMR 62B.2.2(6)(b).

Are there exceptions to the due date? Whenever a due date

• Composite payments of estimated tax. The filing agent re spon -

falls on a Saturday, Sunday or legal holiday, the filing and payment

sible for filing on behalf of nonresident pass-through members who

may be made on the next succeeding business day. If your tax year

elect to file on a composite basis must make estimated tax pay-

is not on a calendar year basis, enter due dates on each voucher

ments electronically under the identification number of the pass-

to correspond with your fiscal year. Your due dates will be the 15th

through entity and should no longer use a paper Form 1-ES. For

day of the fourth, sixth and ninth months of your fiscal year and the

more information, see TIR 09-18 and Non-Resident Income Tax

15th day of your next fiscal year.

Regulation, 830 CMR 62.5A.1(11). Nonresidents who have elected

What if my tax liability changes during the year? Even though

to partici pate in a composite return must make estimated payments

you may not expect to owe estimated tax payments, your income

on in come not included on a composite return.

or deduction(s) may change during the year so that you will be

• For tax years beginning on or after January 1, 2009, Massachu-

required to make estimated tax payments. In such case, the pay -

setts has adopted business entity classification rules that broadly

ment dates are as follows: June 15, if the change occurs between

conform to the federal “check-the-box” rules requiring companies

April 1 and May 31; September 15, if the change occurs between

to be classified as the same type of legal entity for state and federal

June 1 and August 31; next January 15, if the change occurs after

tax purposes. Taxpayers affected by the adoption of the “check-

August 31. Use the enclosed Amended Computation Worksheet

the-box” rules should consult 830 CMR 63.30.3 to determine their

if, during the year, you find that your estimated tax is substantially

estimated tax payment obligations.

increased or decreased. The estimated tax may be paid in full at

the time of filing your first payment voucher or in equal installments

• Resident grantors treated as an owner of a grantor-type trust.

on the remaining payment dates. Be sure to use the ap propriate

• Resident beneficiaries subject to tax at the beneficiary level pur-

voucher for each date.

suant to M.G.L. c. 62, sec. 10(h).

What if we want to make joint payments? A husband and wife

• Trustees or other fiduciaries required to deduct and withhold

may make joint payments of estimated tax as long as they are

payments under M.G.L. c. 62, sec. 10(g) on behalf of a nonresident

married at the time when the payments are due and not separated

individual beneficiary. The Form 1-ES prepared by the trustee or

by a decree of divorce or sep arate maintenance. If a joint payment

other fiduciary must include only the Social Security number of the

is made but a joint return is not filed for the taxable year, they may

beneficiary on whose behalf the payment is being made. The em -

treat the payment for such year as the estimated tax pay ment of

ployer identification number of the trust or estate of which the non-

either spouse, or it may be divided between them in such a man-

resident individual is a beneficiary is not to be included. For more

ner as they may agree. The combined total cannot exceed 100% of

the estimated tax payments.

information, see Directive 07-4.

Form 1-Es - Estimated Tax Payment - Massachusetts Department Of Revenue

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