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Screen MAEst - Massachusetts Estimates (1120)
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Overpayment Application
Application of current year overpayment
These code options are the same as those in the federal Est screen. They instruct the application how to apply any current-year overpayment. The decision affects what's printed on the return and what's calculated as next year’s estimated tax payments. The overpayment options appear in the dropdown list and in the following table.
Code | Result |
|---|---|
1 | Refund 100 percent of the overpayment. This is the default option. |
2 | Apply 100 percent of the overpayment to next-year estimate; refund excess. This applies the overpayment to each estimate in full until the overpayment is exhausted or all estimated payments are made, in which case the excess is refunded. |
3 | Apply to the first estimate of next year; refund excess. |
5 | Apply the portion of the overpayment shown in Overpayment to be applied (Code 5 or 8) to the estimates until the amount is exhausted or all payments are made, in which case the excess is refunded. |
6 | Apply to the first and second estimates of next year; refund excess. |
7 | Apply 100 percent of this overpayment to next-year estimates; provide no refund. |
8 | Apply amount specified in Overpayment to be applied (Code 5 or 8) to next year’s estimate. This lets an overpayment to be specified even when estimates aren't required or generated. |
note
New clients and converted clients may benefit from Massachusetts’s new client options. Select Setup, 1120 Corporation, Massachusetts tab, select New Client Options, and enter the code in
Overpayment application
. The selection there 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 in this box if necessary and isn't replaced by the selection in the New Client Options window.Overpayment to be applied (Code 5 or 8)
Apply amount specified in
Overpayment to be applied (Code 5 or 8)
to next year’s estimate. This lets an overpayment to be specified even when estimates aren't required or generated.Estimates
Form 355-ES - declaration for next year
These codes are the same as those in the federal Est screen. They tell the application which method to use to determine the amount of the next-year estimated tax. If
2
, 3
, 5
, 6
, or 7
is entered in Application of current year overpayment
, the application defaults to option 1 in Form 355-ES - declaration for next year
. If both of these boxes are blank, the application does not
generate estimates or estimate filing instruction information. The options for Form 355-ES - declaration for next year
appear in the dropdown list and in the following table.Code | Result |
|---|---|
1 | Use current-year income tax liability; if $1,000 or less use zero. This is the default if you entered option 2 , 3 , 5 , 6 , or 7 in Application of current year overpayment .note
If the current-year tax is less than the minimum filing requirements, the estimates won't print. |
2 | Use current-year liability adjusted by amount below. If you select this option, also enter an adjustment to the current-year tax liability in Amount to adjust current year liability (Code 2) . If the adjustment represents a decrease, enter a negative amount. |
3 | Use current-year liability even if $1,000 or less. |
5 | Use the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) boxes, before overpayment. If you select this option, the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) boxes are adjusted by any overpayment applied. |
8 | Use projected tax liability. Estimates are prepared even if the projected tax liability is less than $1,000. |
9 | Use the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) boxes. If you select this option, the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) boxes aren't adjusted by any overpayment applied. |
note
New clients and converted clients may benefit from Massachusetts’s new client options. Select Setup, 1120 Corporation, Massachusetts tab, select New Client Options, and enter the code in
Next year’s estimate declaration
. The selection there 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 in this box if necessary and isn't replaced by the selection in the New Client Options window.Amounts for next year’s estimates (Code 5 or 9)
Use these boxes to specify the estimate amounts for each quarter. These amounts won't be adjusted by the amounts entered in the
Next year estimates already paid
boxes.If code
5
is entered in Form 355-ES - declaration for next year
, enter the quarterly payments in these boxes. These amounts are adjusted by the overpayment applied.If code
9
is entered in Form 355-ES - declaration for next year
, enter the quarterly payments in these boxes. These amounts won't be adjusted by the overpayment applied.Next year estimates already paid
Use these boxes to enter any estimate payments already made toward the next year.
If code
1
, 2
, or 3
is entered in Form 355-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 in Form 355-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)
boxes.Number of estimates desired, if other than four
The number of estimates defaults to 4. Enter a code to specify fewer than four estimates. The options for the number of estimates appear in the dropdown list and in the following table. The application applies the overpayment and amounts already paid toward next-year estimates to each estimate, based on the overpayment code and the quarter in which the amounts were paid.
Code | Result |
|---|---|
4 | Four estimates are generated. (default) |
3 | The last three estimates are generated. Any unpaid balance from the first estimate is included in the second estimate. |
2 | The last two estimates are generated. Any unpaid balance from the first or second estimate is included in the third estimate. |
1 | 100 percent of the gross estimated tax liability is allocated to the fourth estimate. |
A | 100 percent of the gross estimated tax liability is allocated to the first estimate. |
B | 100 percent of the gross estimated tax liability is allocated to the second estimate. |
C | 100 percent of the gross estimated tax liability is allocated to the third estimate. |
Amount to round up each estimate
This box lets you round 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 box is blank, the application rounds each estimated payment up to the next dollar.note
New clients and converted clients may benefit from Massachusetts’s new client options. Select Setup, 1120 Corporation, Massachusetts tab, select New Client Options, and enter the amount in
Round estimates by
. The amount entered there 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 in this box if necessary and isn't replaced by the selection in the New Client Options window.New corporation and less than 10 employees
Enter
X
if the corporation is new and has fewer than 10 employees. The application uses this information, along with the payment percentages, in determining the estimated tax for next year.Expected liability for next year if large corporation
If this is a large corporation, enter the amount of expected liability for next year. A large corporation is a corporation that had, or its predecessor had, federal taxable income of $1,000,000 or more for any of the three tax years immediately preceding the current tax year. For this purpose, taxable income is modified to exclude net operating loss or capital loss carrybacks or carryovers.