Declaration of Estimated Income Taxes

Declaration of Estimated Tax

Taxpayers must make a declaration of estimated income tax and pay estimated tax payments if their estimated Louisiana income tax after credits and taxes withheld is expected to exceed $1,000 for single filers and $2,000 for joint filers as required by Revised Statute 47:116. To calculate the estimated tax, resident taxpayers should use the current year's Income Tax Tables to estimate their income tax liability based on the expected amount of Louisiana taxable income. Taxpayers who are nonresidents or part-year residents should use the Tax Computation Worksheet to calculate the amount of Louisiana estimated tax. For general information concerning calculation and payment of estimated tax, see the estimated payment instructions, Form IT-540ES(I). Calendar year taxpayers can pay the estimated tax in full with the declaration, or in equal installments, on or before April 15th, June 15th, September 15th, and January 15th.

Special Provisions for Farmers or Fishermen

Revised Statute 47:117(B) provides that if at least two-thirds of an individual's estimated gross income is from farming or fishing, the declaration and estimated tax payment may be made any time on or before January 15th of the succeeding taxable year without being assessed underpayment of estimated tax penalty. Revised Statute 47:116(F) allows an the exception from the estimated tax payment requirement if the taxpayer files their individual income tax return by March 1st of the succeeding taxable year and pays the total amount due.

Exception To Estimated Payment Declaration Requirement

Revised Statute 47:116(F) allows an exception from the estimated tax payment amendment requirement or original declaration requirement due January 15th of the succeeding year if the taxpayer files their individual income tax return by January 31st of the succeeding year and pays the total amount due. Filing a declaration, amended declaration, or paying the last installment by January 15th, or filing an income tax return by January 31st, will not relieve you of the underpayment penalty if you failed to pay the estimated income tax that was due earlier in the year.

Estimated Tax Payment Options

Taxpayers can pay the estimated tax using any of the following options:

• Electronically using Louisiana File Online;

• By credit card using Official Payments

• By mail using the Louisiana Estimated Tax Declaration Voucher For Individuals, Form IT-540ES. Payments by check should be made to the Department of Revenue. Do not send cash.

  Penalty For Failure to Pay or Underpayment of Estimated Tax

  Revised Statute 47:118 authorizes a penalty for failure to pay or underpayment of estimated income tax. The penalty is 12 percent annually of the underpayment amount for the period of the underpayment.

  Determination of the Underpayment Amount

  1. The underpayment is the excess of the installment amount that would be required if the estimated tax was 90 percent (66.66 percent for qualified farmers and fisherman) of the tax due for the previous taxable year or, if no return was filed, 90 percent (66.66 percent for qualified farmers and fisherman) of the tax due for the current year, over the installment amount that was paid on or before the last date prescribed for the payment.
  2. For the purposes of determining the underpayment amount, the required installment amount is 25 percent of the required annual payment.

  Determination of the Underpayment Period

  The underpayment period is from the date the installment was required to be paid to whichever of the following dates is earlier:

  1. The 15th day of the fourth month following the close of the taxable year; or
  2. The date on which any portion of the underpayment is paid limited to the payment amount.

  Penalty Exceptions

  The underpayment of estimated tax penalty will not be imposed on any installment if no declaration of estimated tax is required to be filed because the taxpayer did not reasonably expect for their taxes to exceed $1,000 for single filers and $2,000 for joint filers as required by Revised Statute 47:116(A), or if the total amount of all estimated tax payments made on or before the last date prescribed for the payment of the installment equals or exceeds the lesser of the following:

  1. The amount which would have been required to be paid on or before the date if the estimated tax were whichever of the following is the least.
     • The tax due on the preceding tax year's return, if the individual filed a tax return for the preceding year and the year was a taxable year of 12 months;
     • The tax that would have been due for the preceding taxable year based on the taxpayer's status and personal exemptions and credits for dependents and facts shown on his return; or
     • Ninety percent (66.66 percent for qualified farmers and fisherman) of the tax due on an annualized basis for each quarterly period.
  2. Ninety percent of the tax computed at the applicable rates on the basis of the actual taxable income for the months in the taxable year ending before the month in which the installment is required to be paid.

  Notification of Underpayment of Estimated Tax Penalty

  When an individual income tax return is filed with a payment in excess of $1,000 for single filers and $2,000 for joint filers, the taxpayer may be notified of the requirement to file an estimated tax declaration and pay the estimated tax.

  Based on the underpayment amount and the underpayment period, an assessment of underpayment of estimated tax penalty will be made.

  Request for Penalty Waiver

  Taxpayers may request the penalty be waived by completing form R-20128 (Request for Waiver of Penalties) and form R-210R (Residents) or R-210NR (Nonresident/Part-Year Resident). The request must be made within one year from the tax return's due date including any applicable extensions. If it can be determined that the individual acted in good faith and the failure to make the estimated payments was attributable to extraordinary circumstances beyond the individual's control or that the individual made a declaration and paid estimated tax in accordance with Revised Statutes 47:116, 117, and 117.1 before the due date of the return without regard to any extension of time.

  If it is determined that the individual acted with intentional disregard for the state laws, the request for penalty waiver will be denied.

Please refer to the page on Individual Income Tax for further information.