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Screen MJDETEst - Detroit Estimates (1120)
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Overpayment Application
Application of current year overpayment
These code options are the same as those in the federal Est screen. They dictate how to apply any current-year overpayment. This decision affects what's printed on Page 2 of the return and the calculation of next year’s estimated tax payments. Enter one of the overpayment options listed in the following table or select one from the dropdown list.
Code | Result |
|---|---|
1 | Refund 100 percent of the overpayment. This is the default option. |
2 | Apply 100 percent of overpayment to next year’s estimate; refund excess. This 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 divides the total overpayment by the number of next-year payments, applies this amount to each estimate, and refunds any excess overpayment. |
5 | Apply amount shown in Overpayment to be applied (Code 5 or 8) to estimates until exhausted; refund excess. |
6 | Apply to first and second estimates; refund excess. |
7 | Apply 100 percent of overpayment to next year’s estimates, no refund. |
8 | Apply amount specified in Overpayment to be applied (Code 5 or 8) to next year’s estimate. This lets an overpayment to be specified even when estimates aren't required or generated. |
note
New clients and converted clients may benefit from the Michigan Cities new client options. Select Setup, 1120 Corporation, Michigan Cities tab, New Client Options, and enter the code in
Overpayment application
. The code entered in this box transfers to the city 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 made in the New Client Options window.Estimates
Form 5300 - declaration for next year
These codes are the same as those in the federal Est screen. They dictate which method to use to determine the amount of the next year’s estimated tax. If you enter
2
through 7
in Application of current year overpayment
, the application defaults to option 1 in Form 5300 - declaration for next year
. If both of these boxes are blank, the application does not
generate estimate vouchers or filing instruction information. Enter one of the options for Form 5300 - declaration for next year
listed in the following table or select one from the dropdown list.Code | Result |
|---|---|
1 | Use the 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 . Estimates are prepared if the current-year tax liability is equal to or greater than $250. |
2 | Use the current-year income tax liability plus the adjustment in Amount to adjust current year liability (Code 2) . If this is 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 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 boxes blank. If this is selected, the application prints estimate vouchers with the amount boxes blank. |
5 | Use amounts entered. If this is selected, also enter amounts in the Amounts for next year’s estimates (Code 5 or 9) or Next year estimates already paid boxes. These amounts are adjusted by any overpayment applied. |
9 | Use amounts entered. Enter amounts in the Amounts for next year’s estimates (Code 5 or 9) or Next years estimates already paid boxes to enter estimated payments for each quarter. These won't be reduced by any overpayment. |
note
New clients and converted clients may benefit from the Michigan Cities new client options. Select Setup, 1120 Corporation, Michigan Cities tab, New Client Options, and enter the code in
Next year’s estimate declaration
. The code entered in this box transfers to the city 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 made in the New Client Options window.Amounts for next year’s estimates (Code 5 or 9)
These boxes serve two purposes: to specify the estimate amounts for each quarter, and to enter any estimate payments already made toward the next year.
If you enter code
5
in Form 5300 - declaration for next year
, enter the quarterly payments in these boxes. These amounts are adjusted by the overpayment applied and print on the vouchers.If you enter code
9
in Form 5300 - declaration for next year
, enter the quarterly payments in these boxes. These amounts won't be adjusted by the overpayment applied.If you enter code
1
, 2
, or 3
in Form 5300 - declaration for next year
, enter the amounts already paid for each next-year estimate in these boxes. These amounts and the overpayment applied are subtracted from the calculated quarterly estimated tax liability to determine the net voucher amounts.Number of estimates desired
The number of estimate vouchers defaults to
4
. Enter a code 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 quarter in which the amounts were paid. The options for the number of vouchers are listed in the dropdown list and in the following table.Code | Result |
|---|---|
4 | Four vouchers are generated. This is the default option. |
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 lets you enter rounding specifications for the estimated payments. The estimated payments can be rounded 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 rounds each estimated payment up to the next dollar.note
New clients and converted clients may benefit from the Michigan Cities new client options. Select Setup, 1120 Corporation, Michigan Cities tab, New Client Options, and enter the amount in
Round estimates by
. The amount entered in this box transfers to the city 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 made in the New Client Options window.