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Screen MTEst - Montana Estimates (1120)
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Overpayment Application
Application of current year overpayment
These code options are the same as those in the application. They instruct the application how to apply any current year overpayment. This affects what is printed on Form CIT, Page 4 and Form PTE, Page 2, and the calculation of next year’s estimated tax payments. Enter one of the overpayment options listed in the following table or select one from the drop-down list.
Code | Result |
|---|---|
1 | Refund 100 percent of the overpayment. This is the default option. |
2 | Apply 100 percent of overpayment to next year’s estimate; refund excess. This option 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 first estimate; refund excess. |
4 | Apply equally to each estimate; refund excess. This option divides the total overpayment by the number of next year payments desired, applies this amount to each estimate, and refunds any excess overpayment. |
5 | Apply amount shown in the Overpayment to be applied (Code 5 or 8) field to estimates until the overpayment is exhausted or all payments are made, in which case the excess is refunded. |
6 | Apply to first and second estimates; refund excess. |
7 | Apply 100 percent of overpayment to next year’s estimates, no refund. This option applies the entire overpayment to next year even if estimates are not required or the overpayment is in excess of the payments required. No refund is made. |
8 | Apply amount specified below. This option shows the portion of the overpayment in the Overpayment to be applied (Code 5 or 8) field on the amount credited to next year’s estimate tax line of the main return; no refund. This amount does not affect the calculated amount for estimated tax payments. |
note
New clients and converted clients may benefit from Montana’s new client options. Choose Setup, 1120 Corporation, and then the Montana tab, select the New Client Options button, and enter the code in the
Overpayment application
field. The selection in this field 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 field if necessary and is not overwritten by the selection in the New Client Options.Estimates
Form CT and SB - declaration for next year
These codes are the same as those in the application. They tell the application which method to use to determine the amount of the next year’s estimated tax. If
2
through 7
is entered in the Application of current year overpayment
field, the application defaults to option 1 in the Form CT and SB - declaration for next year
field. If both of these fields are blank, the application does not
generate estimate vouchers or filing instruction information. Enter one of the options for the Form CT and SB - declaration for next year
field listed in the following table or select one from the drop-down list.Code | Result |
|---|---|
1 | Use the current-year income tax liability. This is the default if option 2 , 3 , 4 , 5 , 6 , or 7 is entered in the Application of current year overpayment field.If the current year’s tax is less than the minimum filing requirements, the vouchers do not print. |
2 | Use the current-year income tax liability plus the adjustment in the Amount to adjust current year liability (Code 2) field. If this option is selected, also enter an adjustment to the current year tax liability in the Amount to adjust current year liability (Code 2) field. If the adjustment represents a decrease, enter a negative amount. |
3 | Use the current-year income tax liability even if the total liability falls below the minimum amount required to make estimated payments. |
5 | Use the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) fields, before overpayment. If you select this option, the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) fields are adjusted by any overpayment applied. |
8 | Use the projected income tax liability. Estimates are prepared even if the projected tax liability is less than $500. |
9 | Use the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) fields. If you select this option, the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) fields are not adjusted by any overpayment applied. |
note
New clients and converted clients may benefit from Montana’s new client options. Choose Setup, 1120 Corporation, and then Montana tab, select the New Client Options button, and enter the code in the
Next year’s estimate declaration
field. 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 field if necessary and is not overwritten by the selection in the New Client Options.Amounts for next year’s estimates (Code 5 or 9)
Use these fields to specify the estimate amounts for each quarter. These amounts will not be adjusted by the amounts entered in the
Next year estimates already paid
fields.If code
5
is entered in the Form CT and SB - declaration for next year
field, enter the desired quarterly payments in these fields. These amounts are adjusted by the overpayment applied.If code
9
is entered in the Form CT and SB - declaration for next year
field, enter the desired quarterly payments in these fields. These amounts will not be adjusted by the overpayment applied.Next year estimates already paid
Use these fields to enter any estimates payments already made toward the next year.
If code
1
, 2
, or 3
is entered in the Form CT and SB - declaration for next year
field, 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 the Form CT and SB - declaration for next year
field, these amounts do not adjust the amounts entered in the Amounts for next year’s estimates (Code 5 or 9)
fields.Number of estimates desired, if other than four
The number of estimate vouchers defaults to
4
. Enter a code to specify fewer than four vouchers. 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 are paid. The options for the number of vouchers are listed in the drop-down list and in the following table.Code | Result |
|---|---|
4 | Four vouchers are generated. This is the default option. |
3 | The last three vouchers are generated. Any unpaid balance from the first estimate is included in the second estimate voucher. |
2 | The last two vouchers are generated. Any unpaid balance from the first or second estimate is included in the third estimate voucher. |
1 | 100 percent of the gross estimated tax liability is allocated to the fourth voucher. |
A | 100 percent of the gross estimated tax liability is allocated to the first voucher. |
B | 100 percent of the gross estimated tax liability is allocated to the second voucher. |
C | 100 percent of the gross estimated tax liability is allocated to the third voucher. |
Amount to round up each estimate
This field allows rounding specifications for the estimated payments. The estimated payments can be rounded up to the nearest factor indicated. For example, if you want to round up each estimated payment to the nearest $10, enter
10
. If you leave this field blank, the application automatically rounds each estimated payment up to the next dollar.note
New clients and converted clients may benefit from Montana’s new client options. Choose Setup, 1120 Corporation, and then Montana tab, select the New Client Options button, and enter the amount in the
Round estimates by
field. 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 field if necessary and is not overwritten by the selection in the New Client Options.