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Screen NJCEst - New Jersey Composite Estimates (1120)
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Overpayment Application
Application of current year overpayment
The code options available in this box instruct the application how to apply any current-year overpayment. The code used affects what prints on Page 1 of the composite return and the calculation of next year’s estimated tax payments. The overpayment options are listed in the dropdown list and 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 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 divides the total overpayment by the number of payments desired, 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; provide 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 New Jersey’s new client options. Select Setup, 1120 Corporation, New Jersey 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 overwritten by the selection in the New Client Options window.Estimates
Form NJ-1040ES - declaration for next year
The codes
1
, 2
, 3
, 5
, and 9
used in this box indicate which method is used to determine the amount of the next year’s estimated tax. Entering codes 2
through 7
in Application of current year overpayment
causes the application to default to option 1
in Form NJ-1040ES - declaration
for
next year
. If both of these boxes are blank, the application does not
generate estimate vouchers or estimate filing instruction information. The options for Form NJ-1040ES - declaration for next year
are listed in the dropdown list and in the table that follows:Code | Result |
|---|---|
1 | Use the current-year income tax liability. This is the default if 2 , 3 , 4 , 5 , 6 , or 7 was entered in Application of current year overpayment .note
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 Amount to adjust current year liability (Code 2) . If this option 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 estimate payments. |
5 | Use the amounts entered. If this option is selected, also enter amounts in the Amounts for next year’s estimates (Code 5 or 9) boxes.note
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) boxes to enter estimated payments for each quarter. These aren't reduced by any overpayment. |
note
New clients and converted clients may benefit from New Jersey’s new client options. Select Setup, 1120 Corporation, New Jersey 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 overwritten 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 NJ-1040ES - declaration for next year
, enter the desired quarterly payments in these boxes. These amounts are adjusted by the overpayment applied.If code
9
is entered in Form NJ-1040ES - declaration for next year
, enter the desired 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 NJ-1040ES - 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 NJ-1040ES - 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 in this box to specify fewer than four vouchers. The fieldview and the following table list the options for the number of vouchers. The application applies the overpayment and amounts paid toward next year’s estimates to each voucher based on the overpayment code and the quarter in which the amounts were paid.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 allocated to the second voucher. |
C | 100 percent of the gross estimated tax liability allocated to the third voucher. |
Amount to round up each estimate
Use this box to enter rounding specifications for estimated payments. The application can round the estimated payments up to the nearest factor indicated. For example, to round up each estimated payment to the nearest $10, enter
10
in this box. If you leave this box blank, each estimated payment rounds up to the next dollar.note
New clients and converted clients may benefit from New Jersey’s new client options. Select Setup, 1120 Corporation, New Jersey 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 overwritten by the selection in the New Client Options window.