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Federal input screens

Screen Est - Estimates (1120)

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Overview

Use this screen to enter the necessary information for the next year estimated tax payments. For more information, refer to how to force UltraTax/1120 to prepare estimates even when none are required.

Overpayment Application

Application of current year overpayment
The code option in this field determines how any current-year overpayment is applied. The selected option affects what prints on line 36 of the 1120 return or on line 27 of the 1120-S return. Enter one of the overpayment options listed in the following table or select it from the fieldview.
Code
Result
1
Refund 100% of the overpayment. This is the default option.
2
Apply in full to next year's estimate; refund excess. This option 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 of next year; refund excess.
4
Apply equally to all next-year estimates; refund excess. This option applies one-fourth of the overpayment 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 is exhausted or all payments are made, in which case the excess is refunded.
6
Apply to first and second estimate of next year; refund excess.
7
Apply 100% of overpayment to next year's estimate; no refund. This option applies the entire overpayment to next year even if estimates are not required or the overpayment is in excess of the payments required. No refund is made.
8
Apply amount specified in the
Amount for code #5 or #8
field to next year's estimates. This option allows an overpayment to be specified even when estimates are not required or generated.
note
For more information, refer to how to force UltraTax/1120 to prepare estimates even when none are required.

Estimates

Form 1120W - declaration for next year
The remaining estimated tax information is used to estimate the tax for the new tax year. The code option in this field tells the application which method to use to determine the amount of the new year's estimated tax. If you enter
2
 through
7
 in the
Application of current year overpayment
 field, the application defaults to option 1 in the
Form 1120W - declaration for next year
 field. If both of these fields are blank, the estimates or the transmittal letter are not generated for the estimate information. Enter one of the options listed in the following table or select it from the fieldview.
Amount to round up each estimate
If this field is blank, each estimated payment is rounded up to the nearest dollar. Use this field to enter a rounding multiple other than the nearest dollar. For example, enter
25
 if you want to round up each estimated payment to the nearest $25.
Expected liability for next year if large corporation (C Corp)
Members of a controlled group, as identified in section 1563, must divide the $1 million amount among themselves under rules similar to those in section 1563.
Form 8842 annualization periods election
Corporations must file Form 8842 if both of the following conditions are true.
  • The corporation annualizes its income when determining next year's estimated tax.
  • The corporation does not elect to use the annualization periods under section 6655(e)(2)(A)(i).

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