Skip to main content

Solutions

Products

Recommended products

Questions? We are here to help.
Contact us

Purchase

Questions? We are here to help.

Resources

Estimates

Reviewing Estimate Processing Results

1041 and 990-PF estimate processing results can be reviewed using a register or the account binder. For 990-PF estimates, calculated results can also be reviewed using the Estimate Computation Worksheet in the Miscellaneous section of the Electronic Estimate Summary document.
To correct errors found during your review, you can override the total estimate amount, or correct the incorrect transaction or sales detail then reprocess the current quarter estimates. You can reprocess current quarter estimates until estimates are filed with the IRS or state taxing authority.

Using Registers

The data included in the base registers listed below is updated each time you process estimates. You can use the base registers to review estimate processing results, or you can create custom registers that include the estimate processing results that are important to you.
note
The following 990-PF base registers are relevant to only tax years before 2017:
  • 990-PF-Federal Electronic Estimate Quarterly Detail
  • 990-PF-Federal Basic Estimate Information
  • 990-PF-Federal Estimate Payment Summary
For tax years 2017 and later, use the
990-PF-Federal Estimate Payment Summary by Payment Due Date
 base register (described in the table below) to review 990-PF estimate processing results or to create custom registers for reviewing estimate processing results.
Register
Description
Federal Electronic Estimate Quarterly Detail
Includes the estimate calculation method chosen as the federal estimate to be paid, the federal estimate amount, any overpayment applied, any payments made in prior quarters, and the net federal estimate to be paid in the current quarter. The
Notation
 column shows whether the prior year alternative was below the dollar amount entered in the federal
When the prior year estimate is below estimate control
 option. The dollar amount triggers the total estimate amount to be paid in one quarter.
Federal Basic Estimate Information
Includes static information about each account, such as the EIN, entity type, BNC, electronic estimate status, and the federal prior year tax liability.
Federal Estimate Payment Summary
Shows the federal estimate calculation method that calculated to be the most advantageous, the federal estimate amount, and the allocation of the federal estimate between income and principal.
Federal Estimate Alternative Summary
Displays the federal prior year tax, the federal estimate calculated for each method, and the estimate calculation method chosen as the federal estimate to be paid.
Federal Estimate Alternative Summary-Voucher Only
Displays the federal prior year tax, the federal estimate calculated for each method, and the estimate calculation method chosen as the federal estimate to be paid for those accounts with a federal electronic estimate status of
Voucher only estimate computation
.
Federal Estimate Payment Summary-Voucher Only
Shows the federal estimate calculation method that calculated to be the most advantageous, the federal estimate amount, and the allocation of the federal estimate between income and principal for those accounts with a federal electronic estimate status of
Voucher only estimate computation
.
Quarterly Detail for Federal and all States
Combines federal and state estimate information. It displays the federal and state estimate calculated for each method, the federal and state estimate calculation method chosen as the federal estimate to be paid, and whether each account's payment will be included in the estimate back-end file sent to the trust accounting system.
990-PF-Federal Estimate Payment Summary by Payment Due Date
Use for tax years 2017 and later. This register shows 990-PF estimate payments by the month they are due. To complete the Ask filter, enter the month of the due date you want to review in MM/DD/YYYY format. Always enter the fifteenth of any month as the due date, even when the fifteenth falls on a non-business day.
State Basic Information
Includes static information about each account, such as the EIN, entity type, BNC, the federal and state electronic estimate status, the situs state, and the state prior year tax liability.
State Estimate Payment Summary
Shows the state estimate calculation method that calculated to be the most advantageous, the state estimate amount, and the allocation of the state estimate between income and principal.
State Electronic Estimate Quarterly Detail
Includes the estimate calculation method chosen as the state estimate to be paid, the state estimate amount, any overpayment applied, any payments made in prior quarters, and the net state estimate to be paid in the current quarter. The
Notation
 column shows whether the prior year alternative was below the dollar amount entered in the state
When the prior year estimate is below estimate control
 option. The dollar amount triggers the total state estimate amount to be paid in one quarter.

Using the Account Binder

The account binder includes the following estimate and underpayment pages:
Page
Description
Electronic Estimates
This page is for 1041 accounts and 990-PF accounts. To access this page, select the
Accounts
 main topic then the
Electronic Estimates
 subtopic.
For 1041 accounts, you can review the processing results for federal, situs state and nonresident estimate amounts. You can override the net estimate amounts for the current quarter but not for previous quarters. See Using the Electronic Estimates Page to Review Calculated 1041 Federal, Situs State and Nonresident State Estimate Amounts for details.
For 990-PF accounts, you can review the processing results for federal estimate amounts. No overrides are allowed for estimate amounts calculated using the prior year alternative method. For estimate amounts calculated using the annualized alternative, you can override the line items that are highlighted in yellow. You are required to reprocess estimates if you override amounts or make changes to the Electronic Estimates page. See Using the Electronic Estimates Page to Review Calculated 990-PF Federal Estimate Amounts for details.
Estimate Options and Application of Overpayment
This page is for accounts that have vouchers generated with the tax return. To access this page, select the
Tax Review-Estimate and Penalties
 main topic. The
Estimate Options and Application of Overpayment
 subtopic is the default subtopic.
Most of the options under the
Estimate Compute Options
 collapsible section are the same as the PAN or SuperBank level Estimate and Underpayment options. Changes made to the options under this collapsible section override the Estimate and Underpayment options for the account. See Estimate Options for details on the PAN or SuperBank level Estimate and Underpayment options.
Options to apply a portion of the overpayment of taxes as estimates paid by the beneficiaries (Form 1041-T) are found under the
Application of Overpayment
 collapsible section. The
Miscellaneous
 collapsible section provides some print and override options.
Underpayment Penalty
This page is for accounts where Form 2210 is computed and printed or for private foundations where Form 2220 is computed and printed. To access this page for an account where Form 2210 is computed and printed, select the
Tax Review-Estimate and Penalties
 main topic then the
Underpayment Penalty
 subtopic.
When you are a successor trustee for an account or for an account that was not processed using ONESOURCE Trust Tax, use the fields on this page to enter the prior year tax liability and prior year adjusted gross income. These fields are used in the computation of quarterly estimates and the underpayment penalty.
To access this page for a private foundation where Form 2220 is computed and printed, select the
Tax Review-990
 main topic then the
Underpayment Penalty
 subtopic.
Beginning in tax year 2022, you can select the
Always check Form 2220, Part II, Box 7 if Form 2220, Part II, 'Annualized Income Installment Method' is generated
 check box under the
Underpayment Penalty
 collapsible section. When the check box is selected, box 7 in Part II of Form 2220 is checked when the annualized income installment information exists, even if the schedule is not required to be included with Form 2220. When the check box is clear (the default), box 7 is checked only if the annualized income installment schedule is required to be attached. The schedule is required to be attached only if the annualized method did not lessen or eliminate the computed underpayment penalty.
Estimated Tax Paid/Tax Withheld
This page is used to review and override the actual state estimated tax paid and tax withheld data for an account. To access this page, select the
States
 main topic. The
States Summary
 subtopic is the default subtopic. In the grid under the
Existing States
 collapsible section, select the
Estimate Tax Paid/Tax Withheld
 link for the state.
Estimate Options
This page is for state estimated taxes. It is similar to the Estimate Options and Application of Overpayment page. To access this page, select the
States
 main topic. The
States Summary
 subtopic is the default subtopic. In the grid under the
Existing States
 collapsible section, select the
Estimate Options
 link for the state.
Underpayment Penalty
This page is for states that have an underpayment penalty. It is similar to the Underpayment Penalty page described above. To access this page, select the
States
 main topic. The
States Summary
 subtopic is the default subtopic. In the grid under the
Existing States
 collapsible section, select the
Estimate Tax Paid/Tax Withheld
 link for the state.
Documents
For 990-PF accounts only, this page includes tax return projection documents (referred to as Electronic Estimate Summary documents), which are generated using transactions within the applicable date range for the respective quarter. To access an Electronic Estimate Summary document, select the
Documents
 main topic, open the tax year category then open the
Document: Electronic Estimate Summary
 category.
Electronic Estimate Summary documents that are not frozen (their
Keep
 check box is not selected) will be overwritten with subsequent processing requests for the same quarter. A subsequent processing request for a document that is frozen will create a new document. After an estimate is filed for a particular quarter, the last document for the quarter is automatically frozen and cannot be deleted.
The Estimate Computation Worksheet is in the Miscellaneous section of an Electronic Estimate Summary document. The amounts shown for the prior year alternative and annualized alternative methods are the same as those displayed under the
Electronic Estimates Alternatives
 collapsible section on the Electronic Estimate page.
The first page in the Federal section of an Electronic Estimate Summary document indicates the period computed and shows the net investment income used in the calculation of the estimated tax due under the annualized alternative.
Using the Electronic Estimates Page to Review Calculated 1041 Federal, Situs State and Nonresident State Estimate Amounts
The Electronic Estimates page is used to review calculated 1041 federal, situs state and nonresident state estimate amounts for an account. You can override the net estimate amounts for the current quarter but not for previous quarters.
note
You are required to reprocess estimates if you change the estimate data on the Electronic Estimates page.
To use the Electronic Estimates page to review the calculated 1041 federal, situs state and nonresident state estimate amounts for an account:
  1. Open the account.
  2. Select the
    Accounts
     main topic then the
    Electronic Estimates
     subtopic.
  3. Under the
    Electronic Estimates Alternatives
     collapsible section, select + sign for electronic estimates subcategory you want to view. For example, to review federal estimate amounts, select + sign the
    Name: Federal Electronic Estimates
     category.
  4. The graphic below shows the
    Name: Federal Electronic Estimates
     and
    Name: CA Electronic Estimates
     categories opened. You cannot sort or filter the columns.
  5. Review the federal and state current quarter estimate amounts. To review detail amounts, select + sign for the
    Net estimate using prior year alternative
     and
    Net estimate using annualized alternative
     categories. For the federal net estimate categories, select the amount links to review the federal estimate details and override certain detail fields.
  6. You can view information, such as whether the prior year is a short year or whether the annualized alternative was suppressed for an account, under the
    Electronic Estimates Options
     collapsible section.
  7. If the
    Prior year is a short year
     or
    Suppressed annualized
     check boxes display with a yellow background, the account-level option is overridden. To return the account-level check boxes to their original selections, select
    Clear
     on the Electronic Estimates page then submit an
    Electronic Estimate Summary
     processing request for the account.
  8. The graphic below shows the detail fields for the federal
    Net estimate using prior year alternative
     category. The state detail fields for this category are the same.
  9. The
    Percent of prior year tax
     field will be either 100% or 110%, depending on AGI. If the
    When the prior year estimate is below estimate control
     option was set to pay 100% of the total prior year alternative estimate amount in a specific quarter then the
    Percentage for the quarter
     field shows 1.0000000 for the quarter.
  10. The prior year alternative fields are blank if the account's prior year tax return was not calculated using ONESOURCE Trust Tax.
  11. The graphic below shows the detail fields for the federal
    Net estimate using annualized alternative
     category. The state detail fields for this category vary depending on whether the state is Massachusetts or is categorized as an adjustment state or start-over state. Adjustment states (includes most states), are those states that start with the federal taxable income then make adjustments to calculate the state taxable income. Start-over states (includes California, Hawaii and Kentucky), have amounts for each category of income that are totaled to determine the state taxable income.
  12. The annualized alternative is calculated based on the transactions and sales that were loaded to your ONESOURCE Trust Tax database for the period required for the quarter. ONESOURCE Trust Tax uses the transaction tax effective date to determine the transactions that are included in the current quarter.
  13. The annualized alternative is not automatically calculated if the estimate control option for suppressing the annualized alternative is set or if the dollar amount for the
    Use prior year alternative unless it is greater than the annualized alternative by
     estimate control option is met.
  14. You can override the current quarter estimate amounts displayed in the federal and state
    Net estimate for selected alternative
     and
    Amount from principal
     fields. You cannot override estimate amounts in prior quarters.
  15. Correcting the underlying transaction or sales detail and reprocessing the quarterly estimate includes the correct amount in the calculations for future quarterly estimate periods and the year-end tax return. Overriding the current quarter estimate does not include the correct amount in the calculations for future quarterly estimate periods and the year-end tax return.
  16. Select
    Save
    .
  17. If you changed the estimate data, reprocess the current quarter estimates for the account then review the processing results again. You can access the
    Process
     pop-up window from the account you are reviewing by selecting
    Process
     from the
    Account Action
     drop-down list. See Processing Federal and State Estimates for details.
Using the Electronic Estimates Page to Review Calculated 990-PF Federal Estimate Amounts
The Electronic Estimates page is used to review 990-PF federal estimate amounts calculated using the prior year alternative and annualized alternative methods. No overrides are allowed for estimate amounts calculated using the prior year alternative method. The annualized alternative estimate calculation is based on the investment income used in processing a 990-PF tax return projection, and is reported in Part I, column b of Form 990-PF. Estimate amounts calculated using the annualized alternative can be overridden if the line item is highlighted in yellow.
note
You are required to reprocess estimates if you override amounts or make changes to the Electronic Estimates page.
To use the Electronic Estimates page to review calculated 990-PF federal estimate amounts:
  1. Open the 990-PF account.
  2. Select the
    Accounts
     main topic then the
    Electronic Estimates
     subtopic.
  3. Use the
    Electronic Estimates Options
     collapsible section to review or indicate:
    • Whether the prior year is a short year. The prior year is a short year when the current quarter's
      Prior year is a short year
       check box is selected.
    • Whether the annualized alternative is suppressed for the current quarter. The annualized alternative calculation is suppressed when the current quarter's
      Suppress annualized
       check box is selected. Only the prior year alternative calculation is considered for the current quarter.
    • Whether current quarter estimates are included in the back-end file. Current quarter estimates will be included in a back-end file when the current quarter's
      Include in back-end file
       check box is selected.
    • How the excise tax on investment income is calculated for the annualized alternative calculation.
      Tax automatically determined
       is the default for calculating the excise tax on investment income. The excise tax is calculated a 1%, 2% or 4% of net investment income when the the applicable current quarter's check box is selected.
  5. Under the
    Electronic Estimates Alternatives
     collapsible section, select + sign for the
    Name: Federal Electronic Estimates
     category.
  6. Review the federal current quarter estimate amounts. Select + sign for the
    Net estimate using prior year alternative
     and
    Net estimate using annualized alternative
     categories to review the detail amounts.
    • No overrides are allowed for estimate amounts calculated using the prior year alternative method.
    • The annualized alternative is calculated based on the investment income used in processing a 990-PF tax return projection. On Form 990-PF, investment income is reported in Part I, column (b) Net investment income. Estimate amounts calculated using the annualized alternative can be overridden if the line item is highlighted in yellow.
    • The annualized alternative is not automatically calculated if the estimate control option for suppressing the annualized alternative is set or if the dollar amount for the
      Use prior year alternative unless it is greater than the annualized alternative by
       estimate control option is met.
    • The
      Net estimate for selected alternative
       can be overridden for the current quarter.
    • You cannot sort or filter the columns.
  8. The graphic below shows the detail fields for the
    Net estimate using annualized alternative
     category.
  9. Select
    Save
    .
  10. If you changed the estimate data, reprocess the current quarter estimates for the account then review the processing results again. You can access the Process pop-up window from the account you are reviewing by selecting
    Process
     from the
    Account Action
     drop-down list. See Processing Federal and State Estimates for details.

This article applies to:

  • PRODUCT: ONESOURCE Trust Tax