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Screen NJEst - New Jersey Estimates (1120)
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Overpayment Application
Application of current year overpayment
The code options available in this box instruct the application how to apply any current-year overpayment. The code used affects the amount of overpayment application that prints on the return and the calculation of next year’s estimated tax payments. The overpayment options are listed 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’s 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 next year’s first estimate; refund excess. |
4 | Apply equally to all next year estimates; refund excess. This divides the total overpayment by the number of payments, applies this amount to each estimate, and refunds any excess overpayment. |
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 next year’s first and second estimates; refund excess. |
7 | Apply 100 percent of this year’s overpayment to next year’s 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 New Jersey’s new client options. Select Setup, 1120 Corporation, then New Jersey tab, select New Client Options and enter the code in
Overpayment application
. The selection in this box 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.Estimates
Form CBT-150 - declaration for next year
The codes
1
, 2
, 5
, and 9
used in this box indicate which method is used to determine the amount of the next year’s estimated tax. Entering 2
through 7
in Application of current year overpayment
causes the application to default to 1
in Form CBT-150 - declaration for next year
. If both of these boxes are blank, the application does not
generate estimate vouchers or estimate filing instruction information. The options for Form CBT-150 - declaration for next year
are listed in the dropdown list and in the table that follows:Code | Result |
|---|---|
1 | Use current year liability. This is the default if 2 , 3 , 4 , 5 , 6 , or 7 is entered in Application of current year overpayment . |
2 | Use current year liability adjusted by amount. If this is selected, 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. |
5 | Use the amounts entered, before overpayment. If you select this, also enter data in the Amounts for next year’s estimates (Code 5 or 9) boxes.note
These amounts are adjusted by any overpayment applied. |
6 | 50% installment of current year if equal to $500 ($375 for S corps). This uses 50 percent of the current-year tax in lieu of making estimated payments if the tax is equal to the minimum tax of $500 for C corporations, or $375 for S corporations. If this option is selected, the application recognizes only 1 , 5 , and 7 as valid selections for Application of current year overpayment . If the current-year tax is greater than the minimum tax of $500 for C corporations, or $375 for S corporations, the application defaults to code 1 . |
7 | 100% installment of current year if equal to $500 ($375 for S corps). This uses 100 percent of the current-year tax in lieu of making estimated payments if the tax is equal to the minimum tax of $500 for C corporations, or $375 for S corporations. If this option is selected, the application recognizes only 1 , 5 , and 7 as valid selections for Application of current year overpayment . If the current-year tax is greater than the minimum tax of $500 for C corporations or $375 for S corporations, the application defaults to code 1 . |
8 | Use tax liability from Tax Projection Worksheet. If this is selected, the application uses the amount entered for 2026 estimated tax paid (Force) |
9 | Use amounts entered (If applying overpayment, only use code 7 or 8). If this is selected, enter amounts in the Amounts for next year’s estimates (Code 5 or 9) boxes to enter estimated payments for each quarter. These aren't reduced by any overpayment. |
10 | Combine 3rd quarter with 2nd quarter. If this is selected, the 3rd quarter estimate is combined with the 2nd quarter estimate. |
11 | Use current year facts at next year’s rates. If this is selected, vouchers are based on current income and facts, but are calculated using next year’s tax rates. |
note
New clients and converted clients may benefit from New Jersey’s new client options. Select Setup, 1120 Corporation, then New Jersey tab, select New Client Options and enter the code in
Next year’s estimate declaration
. The selection in this box 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): 1st - 4th payment
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 CBT-150 - 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 CBT-150 - 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: 1st - 4th payment
Use these boxes to enter any estimate payments already made toward the next year.
If code
1
, 2
, or 3
is entered in Form CBT-150 - 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 CBT-150 - 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 estimate vouchers defaults to
4
. Enter a code in this box to specify fewer than four vouchers. The dropdown list and the following table list the options for the number of vouchers. The application applies the overpayment and amounts paid toward next year’s estimates to each voucher based on the overpayment code and the quarter in which the amounts were paid.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
To enter rounding specifications for estimated payments use this box. The application can round the estimated payments up to the nearest factor indicated. For example, to round up each estimated payment to the nearest $10, enter
10
in this box. If you leave this box blank, each estimated payment rounds up to the next dollar.note
New clients and converted clients may benefit from New Jersey’s new client options. Select Setup, 1120 Corporation, then New Jersey tab, select New Client Options, and enter the amount in
Round estimates by
. The amount entered in this box 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.