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Screen NCEst - North Carolina Estimates (1120)
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Overpayment Application (C Corp)
Application of current year overpayment
The codes available in this field are the same as those in the federal Est screen. The codes instruct the application how to apply any current-year overpayment. The decision affects what is printed on Page 2 of the return and what is calculated as next-year estimated tax payments. The overpayment options are listed in the following table or can be selected from the fieldview.
Code | Result |
|---|---|
1 | Refund 100 percent of the overpayment. This is the default. |
2 | Apply 100 percent of the overpayment to next-year’s estimates; refund excess. This code 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 1st estimate; refund excess. |
4 | Apply equally each estimate; refund excess. This code divides the total overpayment by the number of payments desired for next year, applies this amount to each estimate, and refunds any excess overpayment. |
5 | Apply the income tax portion of the overpayment shown in the Amounts for 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 1st and 2nd estimates; refund excess. |
7 | Apply 100 percent of overpayment to next-year’s estimate; no refund. This option 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 the Amount for 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 North Carolina’s new client options. Select
Setup
,1120 Corporation
, the North Carolina
tab, New Client Options
, 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 isn't overwritten by the selection in the New Client Options window.Overpayment to be applied (Code 5 or 8)
Apply amount specified in the
Amount for code #5 or #8
field to next year’s estimate. This option allows an overpayment to be specified even when estimates aren't required or generated.Estimates
Form CD-429 - declaration for next year
The codes available in this field 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 estimated tax. If
2
through 7
is entered in the Application of current year overpayment
field, the application defaults to code 1
in the Form CD-429 - declaration for next year
field. If both of these fields are blank, the application doesn't generate estimate vouchers or filing instruction information. The estimate options are listed in the following table or can be selected from the fieldview.Code | Result |
|---|---|
1 | Use the current-year liability; if less than $500 use 0. This is the default if you enter code 2 , 3 , 4 , 5 , 6 , or 7 in the Application of current year overpayment field.note
If the current-year 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 the Amount for code #2 field. If this code is used, also enter an adjustment to the current-year tax liability in the Amount for code #2 field. 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. |
5 | Use amounts entered below. If this code is used, also enter amounts in the Amounts for code #5, #9 or next year estimates paid fields. These amounts are adjusted by any overpayment applied. |
8 | Use the projected tax liability. Estimates are prepared even if the projected tax liability is less than $500. |
9 | Use amounts entered below. Enter amounts in the Amounts for code #5, #9 or next year estimates paid fields to enter estimated payments for each quarter. These won't be reduced by any overpayment. |
note
New clients and converted clients may benefit from North Carolina’s new client options. Select
Setup
, 1120 Corporation
theNorth Carolina
tab, New Client Options
, 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 isn't overwritten by the selection in the New Client Options window.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 won't be adjusted by the amounts entered in the
Next year estimates paid
fields.If code
5
is entered in the Form CD-429 - declaration for next year
field, enter the desired quarterly payments in these fields. These amounts are adjusted by the overpayment applied.If code
9
is entered in the Form CD-429 - declaration for next year
field, enter the desired quarterly payments in these fields. These amounts won't 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 theCD-429 -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 CD-429 - Declaration for next year
field, these amounts don't adjust the amounts entered in the Amounts for code #5 or #9
fields.Number of estimates desired, if other than 4
The number of estimate vouchers defaults to
4
. Enter a code in this field to specify fewer than 4 vouchers. The codes for the number of vouchers are listed in the fieldview and in the following table. The overpayment and amounts already paid toward next-year estimates apply to each voucher based on the overpayment code and the quarter in which the amounts were paid.Code | Result |
|---|---|
4 | 4 vouchers are generated. (This is the default.) |
3 | The last 3 vouchers are generated. Any unpaid balance from the 1st estimate is included in the 2nd estimate voucher. |
2 | The last 2 vouchers are generated. Any unpaid balance from the 1st and 2nd estimate is included in the 3rd estimate voucher. |
1 | 100 percent of the gross estimated tax liability is allocated to the 4th voucher. |
A | 100 percent of the gross estimated tax liability is allocated to the 1st voucher. |
B | 100 percent of the gross estimated tax liability is allocated to the 2nd voucher. |
C | 100 percent of the gross estimated tax liability is allocated to the 3rd voucher. |
Amount to round up each estimate
This field allows rounding specifications to be entered 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
in this field. 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 North Carolina’s new client options. Select
Setup
, 1120 Corporation
, the North Carolina
tab, New Client Options
, 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 isn't overwritten by the selection in the New Client Options window.Expected liability for next year if large corporation (C Corp)
The application calculates next year’s estimates for large corporations based on the amount entered in this field.