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Screen AKEst - Alaska Estimates (1120)
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Overpayment Application
Application of current year overpayment
These codes are the same as those in the Est federal screen. They instruct the application how to apply any current-year overpayment. The code used affects what is printed on Page 1 of the return and what is calculated as next year’s estimated tax payments. The overpayment codes are listed in the dropdown and in the table that follows.
Code | Result |
|---|---|
1 | Refund 100 percent of the overpayment. This is the default. |
2 | Apply 100 percent of overpayment to next year’s estimate; refund excess. This code 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; refund excess. |
4 | Apply equally to each estimate; refund excess. This code divides the total overpayment by the number of next year payments desired, applies this amount to each estimate, and refunds any excess overpayment. |
5 | Apply amount shown in the Overpayment to be applied (Code 5 or 8) field to estimates until exhausted; refund excess. |
6 | Apply to 1st and 2nd estimates; refund excess. |
7 | Apply 100 percent of overpayment to next year’s estimates; no refund. |
8 |
Apply amount specified in the
Overpayment to be applied (Code 5 or 8)
field to next year’s estimate. This option allows an overpayment to be specified even when estimates aren't required or generated.note
New clients and converted clients may benefit from Alaska’s new client options. Select
Setup
then 1120 Corporation
. In theAlaska
tab, select New Client Options
and enter the code in the Overpayment application
field. The selection there transfers to the state input screen for newly created and converted clients and is used to calculate the overpayment application. The transferred code may be changed in this field if necessary and isn't replaced by the selection in the New Client Options
window.Estimates
Form 6240 - declaration for next year
These codes are the same as those in the Est federal screen. They tell the application which method is being used to determine the amount of the next year’s estimated tax.
If codes 2 through 7 are entered in the
Application of current year overpayment
field, the application defaults to code 1 in the Form 6240 - declaration for next year
field. If both of these fields are blank, the application doesn't generate estimate vouchers or estimate-filing instruction information.The codes for the
Form 6240 - declaration for next year
field are listed in the dropdown and in the table that follows.Code | Result |
|---|---|
1 | Use the current-year income tax liability. This is the default if code 2 through 7 is entered in the Application of current year overpayment field.If the current-year’s tax is less than the minimum filing requirements, the vouchers don’t print. |
2 | Use the current-year income tax liability plus the adjustment in the Amount to adjust current year liability ( Code 2) field. If this code is selected, also enter an adjustment to the current-year tax liability in the Amount to adjust current year liability ( Code 2) field. If the adjustment represents a decrease, enter a negative amount. |
3 | Use the current-year income tax liability even if the total liability falls below the minimum amount required to make estimated payments. |
4 | Print vouchers with amount fields blank. If this code is selected, the application prints estimate vouchers with the amount fields blank. |
5 | Use the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) fields, before overpayment. If you select this option, the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) fields are adjusted by any overpayment applied. |
8 | Use the projected tax liability. Estimates are prepared even if the projected tax liability is less than the minimum filling requirement. |
9 | Use the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) fields. If you select this option, the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) fields aren't adjusted by any overpayment applied. |
note
New clients and converted clients may benefit from Alaska’s new client options. Select
Setup
then 1120 Corporation
. In theAlaska
tab, select New Client Options
and enter the code in the Next year’s estimate declaration
field. The selection there transfers to the state input screen for newly created and converted clients and is used to calculate next year’s estimates. The transferred code may be changed in this field if necessary and isn't replaced by the selection in the New Client Options
window.Amounts for next year’s estimates (Code 5 or 9)
Use these fields to specify the estimate amounts for each quarter. These amounts won’t be adjusted by the amounts entered in the
Next year estimates already paid
fields.If code 5 is entered in the
Form 6240 - declaration for next year
field, enter the desired quarterly payments. These amounts are adjusted by the overpayment applied.If code 9 is entered in the
Form 6240 - declaration for next year
field, enter the desired quarterly payments. These amounts will not be adjusted by the overpayment applied.Next year estimates already paid
Use these fields to enter any estimate payments already made toward the next year.
If codes 1, 2, or 3 are entered in the
Form 6240 - declaration for next year
field, these amounts and the overpayment applied are subtracted from the calculated quarterly gross estimated tax liability to determine the net estimate amounts.If code 5 or 9 is entered in the
Form 6240 - declaration for next year
field, these amounts do not adjust the amounts entered in the Amounts for next year’s estimates (Code 5 or 9)
fields.Number of estimates desired, if other than four
The number of estimate vouchers defaults to 4. Enter a code to specify fewer than 4 vouchers. The codes for the number of vouchers are listed in the dropdown and in the following table. The overpayment and amounts already paid toward next year’s estimates are applied to each voucher based on the overpayment code and the quarter in which the amounts were paid.
Code | Result |
|---|---|
4 | 4 vouchers are generated. This is the default. |
3 | The last 3 vouchers are generated. Any unpaid balance from the 1st estimate is included in the 2nd estimate voucher. |
2 | The last 2 vouchers are generated. Any unpaid balance from the 1st or 2nd estimate is included in the 3rd estimate voucher. |
1 | 100 percent of the gross estimated tax liability is allocated to the fourth voucher. |
A | 100 percent of the gross estimated tax liability is allocated to the 1st voucher. |
B | 100 percent of the gross estimated tax liability is allocated to the 2nd voucher. |
C | 100 percent of the gross estimated tax liability is allocated to the 3rd voucher. |
Amount to round up each estimate
This field allows rounding specifications to be entered for the estimated payments. The estimated payments can be rounded up to the nearest factor indicated. For example, to round to the nearest $10, enter 10. If this field is blank, the application automatically rounds each estimated payment up to the nearest dollar.
note
New clients and converted clients may benefit from Alaska’s new client options. Select
Setup
then 1120 Corporation
. In theAlaska
tab, select New Client Options
and enter the code in the Round estimates by
field. The amount entered there transfers to the state input screen for newly created and converted clients and is used to round up the estimated payments to the nearest factor. The transferred amount may be changed in this field if necessary and isn't replaced by the selection in the New Client Options
window.Expected liability for next year if large corporation (C Corp)
The application properly calculates next year’s estimates for large corporations based on the amount entered in the
Expected liability for next year if large corporation (C Corp)
field. The client is considered a large corporation if the client has taxable income (excluding net operating loss and capital loss carrybacks and carryovers) of $1,000,000 or more for any of the 3 tax years immediately preceding next year’s tax year.