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Screen NMEst - New Mexico Estimates (1120)
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Overpayment Application
Application of current year overpayment
These code options are the same as those on the federal Est Screen. They instruct the application on how to apply any current-year overpayment. Each code affects what prints on Form CIT-1, Page 2 or Form S-Corp, and on Form CIT-ES estimate vouchers. The overpayment options are listed in the fieldview 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 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 of next year; refund excess. |
4 | Apply equally to all next-year estimates; refund excess. This option applies one-fourth of the overpayment to each estimate and refunds any excess overpayment. |
5 | Apply the portion of the overpayment shown in the Overpayment to be applied (Code 5 or 8) field to the estimates until the overpayment is exhausted or all payments are made, in which case the excess is refunded. |
6 | Apply to first and second estimate of the next year; refund excess. |
7 | Apply 100 percent of overpayment to next year’s estimate; 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 applies the portion of the overpayment shown in the Overpayment to be applied (Code 5 or 8) field to next year’s estimates; no refund. |
note
New clients and converted clients may benefit from New Mexico’s new client options. To select this option globally for all clients, choose Setup, 1120 Corporation, New Mexico tab, and then New Client Options button, and enter the code in the
Overpayment application
field. 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 field if necessary and is not overwritten by the selection in the New Client Options dialog.Estimates
Form CIT-ES and S-Corp-ES - declaration for next year
Codes
1
through 3
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’s estimated tax.If code
2
through 7
is entered in the Application of current year overpayment
field, the application defaults to option 1
in the Form CIT-ES and S-Corp-ES - declaration for next year
field. If both of these fields are blank, the application does not generate estimate vouchers or filing instruction information. The options for the Form CIT-ES and S-Corp-ES - declaration for next year
field are listed in the fieldview and in the following table.Code | Result |
|---|---|
1 | Use the current-year income tax liability. This is the default option if option 2 through 7 is entered in the Application of current year overpayment field. If the total liability is less than the minimum amount required for estimated payments ($5,000), no estimates are calculated. |
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 tax liability, even if the total liability falls below the minimum amount required for estimated payments ($5,000). |
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 liability. Estimates are prepared even if the projected 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. |
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 CIT-ES and S-Corp-ES - 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 CIT-ES and S-Corp-ES - 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 estimate payments already made toward the next year.
If code
1
, 2
, or 3
is entered in the Form CIT-ES and S-Corp-ES - 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 estimated amounts.If code
5
or 9
is entered in the Form CIT-ES and S-Corp-ES - 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 estimates defaults to
4
. Enter a code to specify fewer than four vouchers. The overpayment and amounts already paid toward next year’s estimates applies to each voucher based on the overpayment code and the quarter in which the amounts were paid. The options for the number of vouchers are listed in the fieldview 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 estimates 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
Enter a rounding multiple for the estimated payments. The estimated payment can be rounded up to any amount that you choose. For example, enter
10
to round up each estimated payment to the nearest $10. If this field is blank, each payment is automatically rounded up to the nearest dollar.note
New clients and converted clients may benefit from New Mexico’s new client options. To select this option globally for all clients, choose Setup, 1120 Corporation, New Mexico tab, and then 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 dialog.