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Screen KYLVEst - Louisville Estimates (1120)
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Overpayment Application
Application of current year overpayment
These codes are the same as those in federal Screen Est. They instruct the application on how to apply any current-year overpayment. The code affects what is printed on Page 1 of the return and the calculation of next year’s estimated tax payments. Enter one of the overpayment codes listed in the following table or select one from the drop-down list.
Code
| Result
|
|---|---|
1 | Refund 100 percent of the overpayment. This is the default. |
2 | Apply 100 percent of the 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 estimate payments are made, in which case the excess is refunded. |
3 | Apply to the first period of next year’s estimates; refund excess. |
4 | Apply equally to all next-year estimates; refund excess. This code applies one-fourth of the overpayment to each estimate and refunds any excess overpayment. |
5 | 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 are not required or generated. |
6 | Apply to first and second period of next year’s estimates; refund excess. |
7 | Apply 100 percent of this year’s overpayment to next year’s estimates; provide 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 are not required or generated. |
note
New clients and converted clients may benefit from Kentucky’s new client options. Choose Setup > 1120 Corporation > Kentucky tab, select the New Client Options button, and enter the code in the
Overpayment application
field. The selection in this field 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 is not overwritten by the selection in the New Client Options dialog.Estimates
Form OL-3(D) - declaration for next year
These codes are the same as those in federal Screen Est. They tell the application which method to use to determine the amount of the next year’s estimated tax. If you enter codes
2
through 7
in the Application of current year overpayment
field, the application defaults to option 1 in the Form OL-3(D) - declaration for next year
field. If both of these fields are blank, the application does not
generate estimate vouchers or filing instructions information. Enter a code from the following table or select one from the drop-down list.Code | Result
|
|---|---|
1 | Use current year liability, if less than $5,000 use zero (default). |
2 | Use the amount of current-year income tax liability plus the adjustment in the Amount to adjust current year liability (Code 2) field. If this code is used, 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 current liability even if less than $5,000. |
4 | Print vouchers with amount fields blank. |
5 | Use the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) fields. If this code is used, also enter amounts in the Amounts for next year’s estimates (Code 5 or 9) fields. These amounts are adjusted by the overpayment applied, if applicable. |
8 | Use the projected tax liability. Estimates are prepared even if the projected tax liability is less than $5,000. |
9 | Use amounts entered below. Enter amounts in the Amounts for next year’s estimates (Code 5 or 9) fields to enter estimated payments for each quarter. These are not reduced by any overpayment. |
note
New clients and converted clients may benefit from Kentucky’s new client options. Choose Setup > 1120 Corporation > Kentucky tab, select the New Client Options button, and enter the code in the
Next year’s estimate declaration
field. The selection in this field 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 is not overwritten by the selection in the New Client Options dialog.Amounts for next year’s estimates (Code 5 or 9)
Use these fields to specify the estimate amounts for each quarter. These amounts will not be adjusted by the amounts entered in the
Next year estimates already paid
fields.If code
5
is entered in the Form OL-3(D) - declaration for next year
field, enter desired payments in these fields. These amounts are adjusted by the overpayment applied.If code
9
is entered in the Form OL-3(D) - declaration for next year
field, enter the desired quarterly payments in these fields. These amounts are not 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 code
1
, 2
, or 3
is entered in the Form OL-3(D) - 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 OL-3(D) - 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 estimates in this field defaults to
4
. Enter a code from the following table, or select one from the drop-down list to specify fewer than four vouchers. The overpayment and amounts already paid toward next year’s estimates are applied to each voucher based on the overpayment code and the period in which the amounts were paid.Code
| Result
|
|---|---|
4 | All four vouchers are generated. This is the default. |
3 | The final 3 vouchers are generated. The gross estimated tax liability is allocated 50 percent to the second period and 25 percent each to the third and fourth periods. |
2 | The last two vouchers are generated. The gross estimated tax liability is allocated 75 percent to the third period and 25 percent to the last period. |
1 | 100 percent of the gross estimated tax liability is allocated to the last period. |
A | 100 percent of the gross estimated tax liability is allocated to the first period. |
B | 100 percent of the gross estimated tax liability is allocated to the second period. |
C | 100 percent of the gross estimated tax liability is allocated to the third period. |
Amount to round up each estimate
In this field, enter a rounding specification for the estimated payments. If this field is blank, the application automatically rounds each estimated payment up to the next dollar.
note
New clients and converted clients may benefit from Kentucky’s new client options. Choose Setup > 1120 Corporation > Kentucky tab, select the New Client Options button, and enter the amount in the
Round estimates by
field. The amount entered in this field 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 is not overwritten by the selection in the New Client Options dialog.Prior license fee liability: 1st preceding year (Force) - 3rd preceding year
The application uses the amounts in these fields in conjunction with the current-year license fee tax to automatically determine whether the corporation is a classification II corporation. If the corporation is subject to classification II requirements, the application uses the amounts in these fields to calculate the average tax liability of the previous three years, and compares that amount to the prior-year tax amount. The application then takes whichever figure is greater and compares it to 90 percent of the current year tax. The application then uses the lesser of these two amounts in determining whether the corporation is subject to the penalty for underpayment of estimates. This information is then used in calculating the Louisville Underpayment of Estimated Tax Penalty Worksheet. The application also uses these fields to compare the greater of the current-year tax liability to the average of the current-year and prior two-year liabilities with 90 percent of the amount in the
Expected liability for next year if Classification II
field. It uses the lesser of these amounts in the calculation of next-year estimates when the corporation is subject to classification II requirements.