Estimate Options
Listed below are the options on the Options and Overrides page that affect the calculation and presentation of estimated taxes, how estimate payments are used to calculate the allocation of tax due, and when estimate back-end files are transmitted to your TAV. The options are listed according to their category.
Compute-Federal Options
Option | Description |
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Allocation of tax liability between income and principal | This option affects the allocation of income and principal for tax liability, overpayments, applied refunds and tax due for federal and state returns. The selections include:
In calculating the allocation of tax due, estimate payments from principal and income are used. If a portion of the tax due is allocated to income and all estimates were made from principal, the calculation is made by adjusting the portfolios. The allocation is displayed on the diagnostics page of the return. note
Amounts allocated between income and principal are included in the estimate back-end file but not all TAVs use both the income and principal amounts from the estimate back-end file. If you indicate that you want to allocate between income and principal and your TAV uses only the amount from principal, then the amount of funds taken from your accounts may be incorrect. Contact your TAV to verify the back-end file fields that are used before preparing your back-end file. |
Estimate and Underpayment Options
Option | Description |
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Option upon which federal estimate is to be based (Form 1041-ES) | This option determines how estimated taxes are calculated for Form 1041-ES. The selections include:
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Option upon which federal estimate is to be based (Form 1041-ES) (Continued) | If you use ONESOURCE Trust Tax to electronically file federal estimates, set this option to one of the selections listed below. Otherwise, 1041-ES vouchers are generated when the tax return is processed.
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When the current year federal tax liability (Form 1041-ES) is less than ... the total estimate will be paid in the... | The When the current year federal tax liability (Form 1041-ES) is less than … and the total estimate will be paid in the … options identify the dollar threshold that triggers the entire estimated tax to be paid in a specific quarter. The total estimate is paid in the quarter selected when the total tax liability is less than the dollar amount entered.Enter the dollar amount of the dollar threshold in the When the current year federal tax liability (Form 1041-ES) is less than … option. Select the quarter in which the entire estimated tax amount will be paid in the total estimate will be paid in the … option. |
Federal "alphabetic only" estimate will be generated when the tax liability (Form 1041-ES) is greater than ... | If the tax liability is greater than the amount entered in this option, 1041-ES vouchers are generated with only alphabetic data printed. No amounts are calculated or shown on the vouchers. For example, the account name and EIN as well as the fiduciary name and address are printed but no amounts are calculated or shown. |
Credit federal overpayment (Form 1041-ES) per overpayment application option when "alphabetic only" range specified | This option is used only if an amount is entered in the Federal "alphabetic only" estimate will be generated when the tax liability (Form 1041-ES) is greater than … option. If this option is set to Yes , any overpayment is applied based on how the Application of federal overpayment of tax (Form 1041-ES) option is set. If this option is set to No (the default), the overpayment is not applied when alphabetic only estimate vouchers are used. |
Application of federal overpayment of tax (Form 1041-ES) | This option does not apply if the Option upon which federal estimate is to be based (Form 1041-ES) option is set to No estimate computed or printed or Estimates with only "alphabetic" information . The selections for this option include:
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Limit federal overpayment application of tax to a maximum of ... | Enter the dollar amount by which you want to limit the federal overpayment amount to be applied to federal 1041 estimated tax payments. For example, if you enter $5,000 in this option and the federal overpayment amount to be applied to 2023 estimated tax payments is $6,400 then the federal overpayment application is limited to $5,000. |
Application of federal overpayment of tax treated as having been paid by beneficiaries (1041-T) | This option determines how the federal overpayment of tax is applied and credited. The selections include:
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Option upon which federal estimate is to be based (Form 990-W) | This option determines how estimated taxes are calculated for Form 990-W. The selections include:
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When the current year excise tax liability (Form 990-W) is less than ... the total estimate will be paid in the ... | The When the current year excise tax liability (Form 990-W) is less than … and the total estimate will be paid in the … options identify the dollar threshold that triggers the entire excise tax amount to be paid in a specific quarter. The total excise tax amount is paid in the selected quarter when the total tax liability is less than the dollar amount entered.Enter the dollar amount of the dollar threshold in the When the current year excise tax liability (Form 990-W) is less than … option. Select the quarter in which the entire excise tax amount will be paid in the total estimate will be paid in the … option. |
Federal "alphabetic only" estimate will be generated when the excise tax liability (Form 990-W) is greater than … | If the tax liability is greater than the amount entered in this option, Form 990-W is generated with only alphabetic data printed. No amounts are calculated or shown. For example, the account name and EIN as well as the fiduciary name and address are printed but no amounts are calculated or shown. |
Credit federal overpayment (Form 990-W) per overpayment application option when "alphabetic only" range specified | This option is used only if an amount is entered in the Federal "alphabetic only" estimate will be generated when the tax liability (Form 990-W) is greater than … option. If this option is set to Yes , any overpayment is applied based on how the Application of federal overpayment of tax (Form 1041-ES) option is set. If this option is set to No (the default), the overpayment is not applied when alphabetic only estimates are used. |
Application of federal overpayment of tax (Form 990-W) | This option does not apply if the Option upon which federal estimate is to be based (Form 990-W) option is set to No estimate computed or printed or Estimates with only "alphabetic" information . The selections for this option include:
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Option upon which RESIDENT state estimate is to be based | This option determines how resident state estimated taxes are calculated. The selections include:
If you use ONESOURCE Trust Tax to electronically file state estimates, set this option to one of the selections listed below. Otherwise, state vouchers are generated when the tax return is processed.
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Option upon which NON-RESIDENT state estimate is to be based | This option determines how nonresident state estimated taxes are calculated. The selections include:
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When the current year state tax liability is less than ... the total estimate will be paid in the … | The When the current year state tax liability is less than … and the total estimate will be paid in the … options identify the dollar threshold that triggers the entire state estimated tax to be paid in a specific quarter. The total estimate is paid in the selected quarter when the total tax liability is less than the dollar amount entered.Enter the dollar amount of the dollar threshold in the When the current year state tax liability is less than … option. Select the quarter in which the entire estimated tax amount will be paid in the total estimate will be paid in the … option. |
State "alphabetic only " estimate will be generated when the tax liability is greater than ... | If the tax liability is greater than the amount entered in this option, state vouchers are generated with only alphabetic data printed. No amounts are calculated or shown. For example, the account name and EIN as well as the fiduciary name and address are printed but no amounts are calculated or shown. |
Credit state overpayment per overpayment application option when "alphabetic only" range specified | This option is used only if the State "alphabetic only" estimate will be generated when the tax liability is greater than … option has an amount entered. If this option is set to Yes , any overpayment is applied based on the selection in the Application of state overpayment of tax option. If this option is set to No (the default), the overpayment is not applied when alphabetic only estimates are used. |
Application of state overpayment of tax | This option is ignored if the Option upon which RESIDENT state estimate is to be based option is set to No estimate computed or printed or Estimates with only "alphabetic" information . The selections include:
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Limit state overpayment application of tax to a maximum of ... | Enter the dollar amount by which you want to limit the state overpayment amount to be applied to state 1041 estimated tax payments. For example, if you enter $5,000 in this option and the state overpayment amount to be applied to 2023 estimated tax payments is $6,400 then the state overpayment application is limited to $5,000. |
Origin of federal estimated tax payments (Form 2210 for Form 1041) | This option determines the origin of estimate payment information (such as the amount or date paid) used in Form 2210 computations. The selections include:
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Origin of federal annualized income installment information from Electronic Estimates (for Form 1041) | This option is applicable only if quarterly estimates are calculated using ONESOURCE Trust Tax. The selections include:
note
ONESOURCE Trust Tax does not recommend using the Only populate periods in which the annualized method was actually utilized selection. The Form 2210 Instructions indicate that if data for one quarter is used, then data for all four quarters must be used on the Form 2210 annualized income worksheet. If Only populate periods in which the annualized method was actually utilized is selected and estimates for one or more periods (but not all) were used, then the annualized method is used to compute the correct amount of underpayment penalty. |
Compute/print of federal underpayment penalty Form 2210 (for Form 1041) | This option determines whether Form 2210 is generated with Form 1041. Even though an underpayment penalty is due or the annualized income installment method is used to compute an estimate payment, you may not be required to file Form 2210 with the IRS. The selections include:
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Carry of underpayment penalty to face of federal return (for Form 1041) | This option determines whether the underpayment penalty calculated on Form 2210 is reported on page 1 of Form 1041. The selections include:
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Origin of federal estimated tax payments (Form 2220 for Form 990-PF) | This option determines the origin of estimated tax payment information (such as the amount or date paid) used to calculate Form 2220 with Form 990-PF. The selections include:
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Compute/print of federal underpayment penalty Form 2220 (for Form 990-PF) | This option determines whether Form 2220 is generated with Form 990-PF. Even though an underpayment penalty is due or the annualized income installment method is used to compute an estimate payment, you may not be required to file Form 2220 with the IRS. The selections include:
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Carry of underpayment penalty to face of federal return (Form 990-PF) | This option determines whether the underpayment penalty calculated on Form 2220 is reported on Form 990-PF. The selections include:
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Origin of state estimated tax payments | This option determines the origin of estimated payment information (such as the amount or date paid) used to calculate the state underpayment penalty. The selections include:
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Origin of state annualized income installment information from Electronic Estimates | This option is applicable only if state quarterly estimates are calculated using ONESOURCE Trust Tax. The selections include:
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State underpayment annualization periods for printing 2210 with tax return (does not effect electronic estimates) | Some state annualized income periods are different from the federal annualized income periods. This option determines whether the federal or state annualization periods are used for the state underpayment penalty worksheet. The selections include:
note
ONESOURCE Trust Tax recommends using the default selection. If this option is set to Use annualization periods provided on state underpayment penalty form , then a state underpayment penalty may be generated since state estimates paid are based on the federal annualization periods. |
Compute/print of state underpayment penalty form | This option determines whether the state underpayment penalty form is generated with the state tax return. The selections include:
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Carry of underpayment penalty to face of state return | This option determines whether the penalty calculated on the state underpayment penalty form is reported on the state tax return. The selections include:
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Determination of 990-PF Tax Rate (Annualization Alternative) (Option not available for estimate tax year 2020 forward) | This option is unavailable for 990-PF quarterly estimates beginning with estimate tax year 2020. This option is used to calculate 990-PF quarterly estimates. It applies to only the annualized alternative tax calculation. The default selection is Use 2% . |
Electronic Filing Options
Option | Description |
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Fiduciary ID for State of New York, Electronic Payment Program | For New York only, enter your four-digit fiduciary ID. Your fiduciary ID is issued to you by the New York State Department of Taxation and Finance (NYSDTF). A New York fiduciary ID is required to e-file New York tax returns and estimates. |
Name Phone Number | Use the Name and Phone Number options under the ELECTRONIC FILING CONTACT INFORMATION section to enter the name and telephone number of your organization's Electronic Filing Administrator.note
The Electronic Filing Administrator's name and phone number are required for electronic payment of Pennsylvania balance dues and estimated tax payments. The phone number is required for electronic payment of New York estimated tax payments. |
ACH Debit Instructions
ABA Transit Routing Number (Bank ID Number) Check Digit Checking Account Number from which funds are to be drawn | These options do not apply to Michigan, Missouri and Rhode Island. To use the same ACH debit instructions for remitting balance due payments and quarterly estimated tax payments, enter the same information in these fields as well as the fields under the ACH Debit Information collapsible section on the Estimate Control page.ACH debits made to your checking account for EFTPS payments are requested from ACH Company ID 3387702000. If your checking account has a filter preventing withdrawals from non-authorized parties, update your account to allow a debit using ACH Company ID 3387702000. For all states except Michigan, Missouri and Rhode Island, enter the date you want to debit your checking account in this option. A settlement date must be entered prior to processing state tax returns. For Illinois and North Carolina e-filing purposes, enter the account holder's name in the Account Holder Name (Applies for IL and NC E-filing Only) . |