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Screen CAEst - California Estimates (1120)
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Overpayment Application
Use this section to request a refund of any current year overpayment or to apply the current year overpayment to next year’s estimates.
note
The California Franchise Tax Board doesn’t want estimate vouchers filed with no amounts due. If estimates are not required, then don’t file Form 100-ES or Form 541-ES.
To calculate next year’s estimated tax liability and required payments, enter code
2
through 7
for Application of current year overpayment
, or enter an amount at Form 100-ES or Form 541-ES - declaration for next year
.Application of current year overpayment
The code options available here are the same as those on the federal Est screen. They instruct the application how to apply any current-year overpayment. The selected option affects what prints on Side 2 of Form 100, 100S, or 100W, or Side 1 of Form 541, as well as the calculation of next year’s estimated tax payments. Enter one of the overpayment options listed in the following table, or select it from the dropdown.
Code | Result |
|---|---|
1 | Refund 100 percent of overpayment (default) |
2 | Apply 100 percent of overpayment to next year’s estimate; refund excess |
3 | Apply to first estimate; refund excess |
4 | Apply equally to each estimate; refund excess |
5 | Apply amount specified as follows to estimates until exhausted |
6 | Apply to 1st and 2nd estimates; refund excess |
7 | Apply 100 percent of overpayment to next year’s estimates; no refund |
8 | Apply amount specified as follows |
note
New clients and converted clients may benefit from California’s new client options. Select Setup, 1120 Corporation, California tab, then select New Client Options and enter the code at
Overpayment application
. The selection here transfers to the state input screen for newly created and converted clients and is used to calculate the overpayment application. The transferred code may be changed here if necessary and isn't replaced by the selection in the New Client Options window.Estimates
To calculate the estimated tax liability and required payments for next year, make an entry for
Form 100-ES or Form 541-ES - declaration for next year
.Form 100-ES or 541-ES - declaration for next year
note
Calculated estimated tax payments are allocated to each quarter at 30 percent, 40 percent, zero percent, and 30 percent per state law. Only codes
5
and 9
generate a 3rd quarter estimate.Codes
1
, 2
, 5
, and 9
used here are the same as those in the federal Est screen. They tell the application which method to use to determine the amount of next year’s estimated tax. If a 2
through 7
is entered for Application of current year overpayment
, the application defaults to option 1
for Form 100-ES or Form 541-ES - declaration for next year
. If both of these are blank, the application does not
generate estimate vouchers or estimate filing instructions. The estimate options are listed in the following table or can be selected from the dropdown.Code | Result |
|---|---|
1 | Use the current-year income tax liability. This is the default if you enter code 2 through 7 for the Application of current year overpayment or if the $800 minimum tax applies. |
2 | Use the current-year income tax liability plus the adjustment for Amount to adjust current year liability (Code 2) . If using this option, also enter an adjustment to the current-year tax liability for Amount to adjust current year liability (Code 2) . If the adjustment represents a decrease, enter a negative amount. |
4 | Print vouchers with amount boxes blank. Estimate vouchers are prepared with the client’s name, address, phone number, and federal ID number, and blank amounts due. |
5 | Use the amounts entered for Amounts to use for next year’s estimates (Code 5 or 9) before overpayment. If you select this option, the amounts entered for Amounts to use for next year’s estimates (Code 5 or 9) are adjusted by any overpayment applied. |
8 | Use the projected tax liability. |
9 | Use the amounts entered for Amounts to use for next year’s estimates (Code 5 or 9) . If you select this option, the amounts entered for Amounts to use for next year’s estimates (Code 5 or 9) are not adjusted by any overpayment applied. |
The calculations for the estimated tax liability are for regular tax only, not the QSub tax. Enter any QSub estimated tax liability in the following places.
New clients and converted clients may benefit from California’s, new client options. Select Setup, 1120 Corporation, California tab, then select New Client Options and enter the code at
Next year’s estimate declaration
. The selection here transfers to the state input screen for newly created and converted clients and is used to calculate next year’s estimates. The transferred code may be changed here if necessary and isn't replaced by the selection in the New Client Options window.Franchise, income, or settlement funds tax: Amounts for next year’s estimates (Code 5 or 9): 1st-4th payments
Use these boxes to specify the franchise or income tax estimate amounts for each quarter. These amounts won’t be adjusted by the amounts entered for
Next year estimates already paid
.If code
5
is entered for Form 100-ES or Form 541-ES - declaration for next year
, enter the desired quarterly payments here. These amounts are adjusted by the overpayment applied.If code
9
is entered for Form 100-ES or Form 541-ES - declaration for next year
, enter the desired quarterly payments here. These amounts won’t be adjusted by the overpayment applied.Franchise, income, or settlement funds tax: Next year estimates already paid: 1st-4th payments
Use these boxes to enter any franchise or income tax estimate payments already made toward the next year.
If code
1
or 2
is entered for Form 100-ES or Form 541-ES - declaration for next year
, these amounts and the overpayment applied are subtracted from the calculated quarterly gross estimated tax liability to determine the net estimate amounts.If code
5
or 9
is entered for Form 100-ES or Form 541-ES - declaration for next year
, these amounts don’t adjust the amounts entered in the Amounts for next year’s estimates (Code 5 or 9)
.QSub annual tax (S Corp): Amounts for next year’s estimates (Code 5 or 9): 1st-4th payment
Use these boxes to specify the QSub annual tax estimate amounts for each quarter. These amounts won’t be adjusted by the amounts entered for
Next year estimates already paid
.If code
5
is entered for Form 100-ES or Form 541-ES - declaration for next year
, enter the desired quarterly payments here. These amounts are adjusted by any overpayment applied.If code
9
is entered for Form 100-ES or Form 541-ES - declaration for next year
, enter the desired quarterly payments here. These amounts won’t be adjusted by the overpayment applied.QSub annual tax (S Corp): Next year estimates already paid: 1st-4th payment
Use these boxes to enter any QSub annual tax estimate payments already made toward the next year.
If code
1
or 3
is entered for Form 100-ES or Form 541-ES - declaration for next year
, these amounts and the overpayment applied are subtracted from the calculated quarterly gross estimated tax liability to determine the net estimate amounts.If code
5
or 9
is entered for Form 100-ES or Form 541-ES - declaration for next year
, these amounts don't adjust the amounts entered for Amounts for next year’s estimates (Code 5 or 9)
.Number of estimates desired, if other than 4
The number of estimate vouchers defaults to
4
. Enter a code to specify fewer than 4 vouchers. The options for the number of vouchers are in the dropdown and in the following table. The overpayment and amounts already paid toward next year’s estimates are applied to each voucher based on the overpayment code and the quarter in which the amounts were paid.Code | Result |
|---|---|
4 | 4 vouchers generate. (default) |
3 | The last 3 vouchers generate. Any unpaid balance from the 1st estimate is included in the 2nd estimate voucher. |
2 | The last 2 vouchers generate. Any unpaid balance from the 1st or 2nd estimate is included in the 3rd estimate voucher. |
1 | 100 percent of the gross estimated tax liability allocated to the 4th voucher. |
A | 100 percent of the gross estimated tax liability allocated to the 1st voucher. |
B | 100 percent of the gross estimated tax liability allocated to the 2nd voucher. |
C | 100 percent of the gross estimated tax liability allocated to the 3rd voucher. |
Amount to round up each estimate
This lets you enter rounding specifications for the estimated payments. The estimated payments can be rounded up to the nearest factor indicated. For example, to round up each estimated payment to the nearest $10, enter
10
. If this is blank, the application rounds each estimated payment up to the nearest dollar.note
New clients and converted clients may benefit from California’s new client options. Select Setup, 1120 Corporation, California tab, then select New Client Options and enter the amount at
Round estimates by
. The amount entered here transfers to the state input screen for newly created and converted clients and is used to round up the estimated payments to the nearest factor. The transferred amount may be changed here if necessary and isn't replaced by the selection in the New Client Options window.Expected liability for next year if large corporation / California taxable income for the past 3 years
The application calculates next year’s estimates for large corporations based on the amount entered for
Expected liability for next year if large corporation
.The client is considered a large corporation if the client has taxable income (excluding NOL and capital loss carrybacks and carryovers) of $1 million or more for any of the 3 tax years immediately preceding next year’s tax year. Enter the prior-year information in
California taxable income for the past three years: 2023 (Force)
, California taxable income: 2022
, and California taxable income: 2021
. Note, however, that if California taxable income: 2023 (Force)
is blank, the application defaults to the taxable income (excluding NOL and capital loss carrybacks and carryovers) determined by using the client’s current data.