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Screen MNEst - Minnesota Estimates (1120)
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Overpayment Application
Application of current year overpayment
These code options are the same as those in the application. They instruct the application how to apply any current-year overpayment. This decision 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 following table.
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 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 next year’s first estimate; refund excess. |
4 | Apply equally to all next-year estimates; refund excess. This option 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 the portion of the overpayment shown in the Overpayment to be applied (Code 5 or 8) field 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. |
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 Minnesota’s new client options. Choose Setup, 1120 Corporation, Minnesota tab, then New Client Options button. 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
Estimates - declaration for next year
These code options are the same as those in the application. They tell the application which method to use to determine the amount of the next year’s estimated tax. If
2
through 7
is entered in the Application of current year overpayment
field, the application defaults to option 1 in the Estimates - declaration for next year
field. If both of these fields are blank, the application does not
generate the Estimated Tax Payments Worksheet or estimate filing instructions information. The options for the Estimates - declaration for next year
field are listed in the following table. If a blank estimate voucher is desired, choose Help, Tax Subject Index, then Web Form Instructions to link to Corporation Estimated Tax Payment, S Corporation Estimated Tax Payment, or UBIT Estimated Tax Payment vouchers from Minnesota’s website.Code | Result |
|---|---|
1 | Use the current-year income tax liability. This is the default if you entered a 2 , 3 , 4 , 5 , 6 , or 7 in the Application of current year overpayment field.note
If the current year’s tax is less than the minimum filing requirements, the vouchers will not 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 option 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 tax liability, even if the total liability falls below the minimum amount required for estimate payments. |
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 filing 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 are not adjusted by any overpayment applied. |
note
New clients and converted clients may benefit from Minnesota’s new client options. Choose Setup, 1120 Corporation, Minnesota tab, then New Client Options button. 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 is not overwritten by the selection in the New Client Options dialog.Amounts for next year’s estimates (Code 5 or 9): 1st - 4th payment
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
5
is entered in the Estimates - 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 Estimates - 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: 1st - 4th payment
Use these fields to enter any estimate payments already made toward the next year.
If code
1
, 2
, or 3
is entered in the Estimates - 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 Estimates - 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 defaults to
4
. Enter a code to specify fewer than four vouchers. The options for the number of coupons are listed in the drop-down list and in the table that follows. The overpayment and amounts already paid toward next year’s estimates are applied to each estimate based on the overpayment code and the quarter in which the amounts were paid.Code | Result |
|---|---|
4 | Four estimates are generated. This is the default option. |
3 | The last three estimates are generated. Any unpaid balance from the first estimate is included in the second estimate. |
2 | The last two vouchers are generated. Any unpaid balance from the first or second estimate is included in the third estimate. |
1 | 100 percent of the gross estimated tax liability is allocated to the fourth estimate. |
A | 100 percent of the gross estimated tax liability is allocated to the first estimate. |
B | 100 percent of the gross estimated tax liability is allocated to the second estimate. |
C | 100 percent of the gross estimated tax liability is allocated to the third estimate. |
Amount to round up each estimate
This field allows rounding specifications to be entered for the estimated payments. The estimated payments round up to the nearest factor indicated. For example, to round up each estimated payment 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 Minnesota’s new client options. Choose Setup, 1120 Corporation tab, then New Client Options button. Enter the amount 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 is not overwritten by the selection in the New Client Options dialog.Expected liability for next year if large corporation (C Corp)
If this is a large corporation, enter the amount of next year’s expected liability. A corporation is considered a large corporation if it has Minnesota taxable net income after apportionment of $1 million or more in any of the three tax years immediately preceding the current tax year. This field applies only to C Corporations.
Enter the prior year information in the
Taxable income:
, 2023
(Force)Taxable income:
, and2022
Taxable income:
fields. Note that if the 2021
Taxable income:
2022
(Force)
field is blank, the application defaults to the Minnesota taxable income (excluding net operating loss carryovers) as determined by using the client’s current data.