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Estimates

Setting Estimate Controls

Estimate controls are options that determine how federal and state estimates are prepared and filed. They also include ACH debit information, which is required for electronically remitting estimated tax payments. Estimate control options apply to all tax years.
Set estimate controls the first time you use ONESOURCE Trust Tax to prepare and file estimates. Review the options each subsequent quarter to ensure they are correct.
If you have a SuperBank association for estimate purposes, the options apply to the SuperBank group regardless of the PAN you access to enter the information.

Setting Estimate Control Options

To set estimate control options:
  1. Select
    SETUP
    ,
    Estimate Control
     then
    Estimate Control
    .
  2. The options on the Estimate Control page apply to all tax years. The
    Estimate Control
     collapsible section groups estimate options that are the same for federal and state estimates in the
    Federal
     and
    State
     columns. When completing these options, you can:
    • Set the option in the
      Federal
       column for federal estimates only.
    • Set the option in the
      State
       column for state estimates only.
    • Set the option in both columns for both federal and state estimates.
  4. Select the
    Compute but do not file estimates
     check box if your organization will use ONESOURCE Trust Tax to calculate estimates, but a different application to file estimates.
  5. For 1041 federal estimates, set the dollar amount and quarter in which the federal estimate amount for an account is paid when the full-year estimate amount falls below the account's prior year tax liability. Enter the dollar amount in the
    When the prior year estimate (1041) is below
     field, and select the quarter from the
    pay the total estimate in the
     drop-down list.
  6. For example, you enter
    $1000
     and select
    1st Quarter
     for federal estimates. An account has a prior year estimated tax of $958. When federal estimates for the account are calculated for Quarter 1, the account shows $958 as the prior year alternative and $150 as the annualized alternative. ONESOURCE Trust Tax selects the $958 prior year alternative as the amount to be paid in Quarter 1 because of how this option is set. If the $958 amount is paid, then no additional estimates will be owed in subsequent quarters.
  7. For 990-PF federal estimates, set the dollar amount and quarter in which the total estimate amount for an account is paid when the full-year estimate amount falls below the account's prior year tax liability. Enter the dollar amount in the
    When the prior year estimate (990-PF) is below
     field, and select the quarter from the
    pay the total estimate in the
     drop-down list.
  8. Select the
    Suppress annualized alternative
     check box if you do not want the annualized alternative automatically calculated. When selected, all estimates are calculated based on the prior year alternative only.
  9. This option can be overridden for the current quarter at the account level. To access the account-level option from the account binder, select the
    Account
     main topic then the
    Electronic Estimates
     subtopic. On the Electronic Estimates page, open the
    Electronic Estimates Options
     collapsible section. Select Plus sign for the
    Name: Federal Electronic Estimates
     or
    Name: State Electronic Estimates
     category then select the
    Suppress annualized
     check box for the current quarter.
  10. Suppressing the annualized alternative at the PAN level places a check mark in the
    Suppress annualized
     check box at the account level. If the
    Suppress annualized
     check box at the account level displays with a yellow background, the account-level option is overridden. To return the account-level
    Suppress annualized
     check box to the original selection, select
    Clear
     on the Electronic Estimates page then submit an Electronic Estimate Summary processing request for the account.
  11. If you want the annualized alternative calculated (even if it is suppressed) when the prior year alternative amount is above a certain dollar amount then enter the dollar amount that will trigger the annualized alternative in the
    Consider the annualized alternative when the prior year alternative is above
     field.
  12. For example, you enter
    $1500
     for federal estimates. An account has a prior year estimated tax of $1610. When federal estimates for the account are calculated, both the prior year alternative and the annualized alternative are computed. ONESOURCE Trust Tax selects the lesser of the two amounts as the estimate to be paid in the current quarter.
  13. Enter a dollar amount to use as a buffer when it is beneficial to increase the estimated tax payment in the
    Use prior year alternative unless it is greater than the annualized alternative by
     field.
  14. For example, you enter
    $100
     for federal estimates. An account calculates a federal estimate based on the annualized alternative, but the annualized alternative is less than the prior year alternative by no more than $100. ONESOURCE Trust Tax selects the prior year alternative as the amount to be paid.
  15. Enter a dollar amount in the
    Round tax liability to the nearest multiple of
     field to round the total tax liability for all estimate alternatives before the amount due is computed.
  16. For example, if you entered
    10
     as the dollar amount for this option and an account has a calculated prior year tax of $2,125 then the amount in the
    Adjusted prior year tax
     field is rounded to $2,130.
  17. Select the sort order for printing 1041 payment vouchers from the
    Order vouchers by
     drop-down list.
  18. For example, select
    Trust Number
     if you want to print your payment vouchers by trust number.
  19. Select how the total federal estimate amount is allocated from the
    Estimate allocation method
     drop-down list. The selections include:
    • No allocation
      -When selected, only the total estimate due is shown in ONESOURCE Trust Tax and the back-end file. The income and principal amounts fields are blank.
    • Allocate all to principal
      -When selected, the total estimate due is also shown as the amount paid from principal in both ONESOURCE Trust Tax and the back-end file.
    • Allocate with gains treated as principal
      -When selected, the total estimate is allocated between income and principal, with capital gains treated as being paid from principal.
    • Allocate with gains and nondistributive income treated as principal
      -When selected, the total estimate is allocated between income and principal, with capital gains and nondistributive income treated as being paid from principal.
    • Allocate w/gains treated as principal: Simple and C$300 allocate all to principal
      -When selected, the total estimate is allocated between income and principal, with capital gains treated as being paid from principal. For simple and complex $300 trusts, the total estimate is allocated to principal.
    • Allocate w/gains and nondistributive income treated as principal: Simple and C$300 allocate all to principal
      -When selected, the total estimate is allocated between income and principal with capital gains and nondistributive income treated as being paid from principal. For simple and complex $300 trusts, the total estimate is allocated to principal.
  21. The
    Estimate allocation method
     drop-down list controls the
    Allocation of tax liability between income and principal
     Compute-Federal option on the Options and Overrides page. See Estimate Options for details.
  22. If the
    Estimate allocation method
     was set to
    Allocate all to principal
     and the prior year alternative is chosen, then select the
    If the prior year alternative is used for a Simple or Complex $300 account, allocate the estimate amount with gains treated as principal
     check box to have ONESOURCE Trust Tax determine if any tax should be applied to income for simple and complex $300 trusts. Otherwise, 100% of the prior year estimate is applied to principal.
  23. Select
    Save
    .

Setting ACH Debit Information

To set ACH debit information:
  1. Select
    SETUP
    ,
    Estimate Control
     then
    Estimate Control
    .
  2. Under the
    ACH Debit Information
     collapsible section, enter the ABA Transit Routing Number (Bank ID number) in the
    Routing Number
     field then enter the checking account number from which funds are to be withdrawn in the
    Checking Account Number
     field.
  3. The routing number and checking account number are used to remit estimated taxes for 1041 and 990-PF accounts.
  4. Select
    Save
    .

This article applies to:

  • PRODUCT: ONESOURCE Trust Tax