Current-year overpayment codes
The code selected in the
Application of current year overpayment
field determines how to apply any current-year overpayment. To change the code for the current-year overpayment, open the
Est
Screen in the Payments
folder, select the Application of current year overpayment
field, and select a code.Code | Result |
|---|---|
1 (default) | Refund 100% of the overpayment. |
2 | Apply 100% of overpayment to next year's estimate and refund the excess. This option applies the overpayment to the 1st estimate and to each successive estimate until the funds run out or until all estimates are paid. You’ll see a refund of the remaining amount on 1041, 1041-QFT, or 1040NR. |
3 | Apply to the 1st quarter estimate and refund the excess. |
4 | Apply equally to each quarter and refund the excess. This option applies the overpayment equally to each estimate and refunds any excess overpayment. |
5 | Apply the portion of the overpayment shown in the Amount for code 5 or 8 field to the estimates until the overpayment runs out or all payments are made. You’ll see a refund of the remaining amount on 1041, 1041-QFT, or 1040NR. |
6 | Apply to the 1st and 2nd quarter estimates and refund the excess. |
7 | Apply 100% of the overpayment to next year's estimate with no refund. |
8 | Apply the following amount specified in the Amount for code 5 or 8 field. If this code is entered and the Next year declaration field is blank, the estimates don’t calculate. |
