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Screen VTEst - Vermont Estimates (1120)
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Overpayment Application
Application of current year overpayment
These codes instruct the application how to apply any current-year overpayment. This decision affects what is printed on Page 1 of the return and what is calculated as next year’s estimated tax payments. Enter one of the overpayment codes 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. |
2 | Apply 100 percent of overpayment to next year’s estimate; refund excess. This code 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 code 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 exhausted; refund excess. |
6 | Apply to first and second estimates; refund excess. |
7 | Apply 100 percent of overpayment to next year’s estimates, no refund. |
8 | Apply amount specified in the Overpayment to be applied (Code 5 or 8) field to next year’s estimate. This option allows an overpayment to be specified even when estimates are not required or generated. |
note
New clients and converted clients may benefit from Vermont’s new client options. To select this option globally for all clients, Choose Setup > 1120 Corporation > Vermont tab, click 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 dialog.Overpayment of estimated payments distributed to owners (S Corp)
Use this field to enter the amount of non-real estate withholding overpayments that should be distributed to non-composite shareholders as reflected on Form BI-471. This field only impacts the portion of overpayment not related to nonresident realty withholding. If this field is blank, the application calculates overpayments distributed to non-composite shareholders as the sum of all nonresident payments and nonresident realty withholding less the nonresident tax calculated on Form BI-472.
Estimates
Form CO-414 or Form WH-435 - declaration for next year
These codes indicate which method to use in determining 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 1
in the Form CO-414 or Form WH-435 - declaration for next year
field. Enter one of the codes for the Form CO-414 or Form WH-435 - declaration for next year
field listed in the following table or select one from the drop-down list. If a blank estimate voucher is desired, use Help > Tax Subject Index > Web Form Instructions to link to Form CO-414 or WH-435 from Vermont’s website. The estimated vouchers produced are not approved for handwritten use.Code | Result |
|---|---|
1 | Use the current-year liability; if less than the minimum liability use zero. This is the default if 2 , 3 , 4 , 5 , 6 or 7 is entered in the Application of current year overpayment field.note
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 code 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 tax liability. Estimates are prepared even if the projected tax liability is less than the minimum filing requirement. |
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 Vermont’s new client options. To select this option globally for all clients, Choose Setup > 1120 Corporation > Vermont tab, click the New Client Options button, and enter the code in the
Next year’s estimate declaration
field. The selection in this field 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 dialog.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 CO-414 or Form WH-435 - 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 CO-414 or Form WH-435 - declaration for next year
field, enter the desired quarterly payments in these fields. These amounts are not 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 CO-414 or Form WH-435 - 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 CO-414 or Form WH-435 - 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 codes for the number of vouchers are listed in the drop-down list 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 | Four vouchers are generated. This is the default. |
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 to be entered for the estimated payments. The estimated payments can be rounded up to the nearest factor indicated. For example, if it is desired to round up each estimated payment to the nearest $10, enter
10
. If this field is blank, the application rounds each estimated payment up to the next dollar.note
New clients and converted clients may benefit from Vermont’s new client options. To select this option globally for all clients, choose Setup > 1120 Corporation > Vermont tab, click the New Client Options button, and enter the amount in the
Round estimates by
field. The amount entered in this field 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.