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Screen MDEst - Maryland Estimates (1120)
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Overpayment Application (C Corp)
Application of current year overpayment
These codes are the same as those in the federal Est screen. They instruct the application on how to apply any current-year overpayment. This affects what is printed on Page 1 of the return and the calculation of next year’s estimated tax payments. The overpayment options are listed in the dropdown list and in the table that follows.
Code | Result |
|---|---|
1 | Refund 100 percent of the overpayment. This is the default option. |
2 | Apply 100 percent of the overpayment to next year’s estimates; refund the excess. This applies the overpayment to each estimate in full until the overpayment is exhausted or all the estimated payments are made, in which case the excess is refunded. |
3 | Apply to next year’s first estimate; refund excess. |
4 | Apply equally to all next-year estimates; refund excess. This divides the total overpayment by the number of next year payments, applies this amount to each estimate, and refunds any excess overpayment. |
5 | Apply the portion of the overpayment shown in Overpayment to be applied (Code 5 or 8) to the estimates until the amount is exhausted or all payments are made, in which case the excess is refunded. |
6 | Apply to next year’s first and second estimates; refund excess. |
7 | Apply 100 percent of this year’s overpayment to next year’s estimates; no refund. This applies the entire overpayment to next year even if estimates aren't required or the overpayment is in excess of the payments required. No refund is made. |
8 | Apply amount specified in Overpayment to be applied (Code 5 or 8) to next year’s estimates. This lets an overpayment to be specified even when estimates aren't required or generated. |
note
New clients and converted clients may benefit from Maryland’s new client options. Select Setup, 1120 Corporation, Maryland tab, select New Client Options, and enter the code in
Overpayment application
. The selection in this box 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 box if necessary and isn't replaced by the selection in the New Client Options window.Estimates
Form 500D and 510D - declaration for next year
These codes are the same as those in the federal Est screen. They tell the application which method to use to determine the amount of next year’s estimated tax. If you enter codes
2
through 7
in Application of current year overpayment
, the application defaults to option 1 in Form 500D and 510D - declaration for next year
. If both of these boxes are blank, the application does not
generate estimate vouchers or filing instruction information. The options for Form 500D and 510D - declaration for next year
are listed in the dropdown list and in the table that follows.Code | Result |
|---|---|
1 | Use current-year income tax liability. This is the default if you entered option 2 , 3 , 4 , 5 , 6 , or 7 in Application of current year overpayment .If the current year’s tax is less than the minimum filing requirements, the vouchers don't print. |
2 | Use current-year income tax liability plus the adjustment in Amount to adjust current year liability (Code 2) . If selected, also enter an adjustment to the current-year tax liability in Amount to adjust current year liability (Code 2) . If the adjustment represents a decrease, enter a negative amount. |
3 | Use current-year tax liability, even if the total liability falls below the minimum amount required to make estimated payments. |
5 | Use the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) boxes, before overpayment. If selected, the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) boxes are adjusted by any overpayment applied. |
8 | Use the projected tax liability. Estimates are prepared even if the projected tax liability is less than $1,000. |
9 | Use the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) boxes. If selected, the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) boxes aren't adjusted by any overpayment applied. |
note
New clients and converted clients may benefit from Maryland’s new client options. Select Setup, 1120 Corporation, Maryland tab, select New Client Options, and enter the code in
Next year’s estimate declaration
. The selection in this box 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 box 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 boxes 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
boxes.If code
5
is entered in Form 500D and 510D - declaration for next year
, enter the quarterly payments in these boxes. These amounts are adjusted by the overpayment applied.If code
9
is entered in Form 500D and 510D - declaration for next year
, enter the quarterly payments in these boxes. These amounts won't be adjusted by the overpayment applied.Next year estimates already paid
Use these boxes to enter any estimate payments already made toward the next year.
If code
1
, 2
, or 3
is entered in Form 500D and 510D - declaration for next year
, 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 Form 500D and 510D - declaration for next year
, these amounts don't adjust the amounts entered in the Amounts for next year’s estimates (Code 5 or 9)
boxes.Number of estimates desired, if other than four
The number of estimate vouchers defaults to
4
. Enter a code to specify less than four vouchers. The options for the number of vouchers are listed in the dropdown list. The overpayment and the amounts already paid toward next year’s estimates apply to each voucher based on the overpayment code and the quarter in which the amounts are paid.Code | Result |
|---|---|
4 | Four vouchers are generated (default). |
3 | The last three vouchers are generated. Any unpaid balance from the first estimate is included in the second estimate voucher. |
2 | The last two vouchers are generated. Any unpaid balance from the first or second estimate is included in the third 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 first voucher |
B | 100 percent of the gross estimated tax liability is allocated to the second voucher. |
C | 100 percent of the gross estimated tax liability is allocated to the third voucher. |
Amount to round up each estimate
This box is used to enter rounding specifications for the estimated payments. The estimated payments can be rounded to any whole dollar amount up to the nearest factor indicated. For example, to round up each estimated payment to the nearest $10, enter
10
. If this box is blank, the application automatically rounds each estimate payment up to the nearest dollar.note
New clients and converted clients may benefit from Maryland new client options. Select Setup, 1120 Corporation, Maryland tab, select New Client Options, and enter the amount in
Round estimates by
. The amount entered in this box 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 box if necessary and isn't replaced by the selection in the New Client Options window.