Screen Est - Federal Payments and Estimates (1040)

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Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to transmit e-files from CS Connect. Find out more.

See also

Form 1040-ES OCR-A Vouchers

The application prints 1040-ES vouchers in the OCR-A format when the option is selected.

Notes

  • To set the option for all 1040 clients, choose Setup > 1040 Individual, click the Other Return Options button in the 1040 Product Information dialog, and mark the Print 1040-ES vouchers in the OCR-A format checkbox on the Return Presentation tab.
  • You can choose to print the mailing address on the right side of the OCR-A voucher if you are using IRS envelopes. To set this global option, choose Setup > 1040 Individual, click the Other Return Options button in the 1040 Product Information dialog, mark the Print 1040-ES vouchers in the OCR-A format and Using IRS envelopes with window right-justified checkboxes. Note that the application prints the mailing address on the left side by default.
  • The UltraTax/1040-ES OCR-A formatted vouchers have not been approved by the IRS.

Form 1040-ES Scannable Vouchers

The application prints 1040-ES vouchers in a scannable format when the option is selected.

Note: To set the option for all 1040 clients, choose Setup > 1040 Individual, click the Other Return Options button in the 1040 Product Information dialog, and mark the Print 1040-ES vouchers in scannable format checkbox on the Return Presentation tab.

2017 Federal Payments

This information is used on Page 2 of the 1040 return and in the calculation of Form 2210.

Note: Amounts entered in the 2016 overpayment applied; Enter total or 1st-5th Amount paid; Paid with 4868 ext; Paid with 2350 ext; and Additional payment fields are available to indicate taxpayer / spouse allocation when using the Filing Status Optimization utility.

The application adds this amount to either the amount in the Enter total field or the 1st-5th Amount paid fields and then transfers the total to the appropriate line of the return. Alos, any amount in this field is applied to the 2017 first-quarter estimate for purposes of calculating Form 2210.

If the estimates were paid in equal amounts and on time, use the Enter total field. Otherwise, enter the payments in the 1st - 5th Amount paid fields. When amounts are in these fields, the application ignores information in the Enter total field.

Enter the actual amount of each payment in the appropriate Amount field, and enter the date if the payment was not on time. Do not include any 2016 overpayment amount in the 1st payment field.

Note: The application provides five payment fields to allow for situations in which more than one estimated tax payment was made in a quarter. Enter payments in the order in which they were made. The first payment date defaults to the first-quarter due date, the second payment to the second-quarter due date, and so on. The fifth payment date defaults to the fourth-quarter due date. It is important, however, to know that these are not "quarter" fields. For example, record a payment in the first quarter in the 1st payment field. Then, if there were two payments made in the second quarter, record them in the 2nd payment and 3rd payment fields with the date paid for the 3rd payment. Then enter the third- and fourth-quarter payments in the 4th payment and 5th payment fields with dates paid, respectively.

The application proformas the estimated payments calculated in the prior year's application to the Calculated amount fields. Enter X in this field to transfer amounts from the Calculated amount fields to the Amount paid fields.

Notes

  • Amounts entered in the Amount paid fields will not be overwritten when the Treat calculated amounts as paid field is marked.
  • When the Date paid field is blank, the first payment date defaults to the first-quarter due date, the second payment to the second-quarter due date, and so on. The fifth payment date defaults to the fourth-quarter due date.

Enter the amount paid with Form 4868, if the Extension printing feature or the Balance due on extension (Force) field in the Extension Information section was not used. The application prints this amount on the appropriate line of Form 1040 and in the Amount you are paying line on Form 4868. You may enter 0 (zero) in this field.

Each time you print the extension (via the File > Print Extensions), the application:

  • calculates the extension payment amount and enters it in this field,
  • prints this amount on the main return, and
  • issues an FYI diagnostic message indicating that you need to verify the amount paid with the extension before filing the return.

Do not delete a previously calculated amount (in blue text) in this field if you want to recalculate the extension. The application updates a calculated amount in this field.

Alternatively, you can overrule the calculated amount by entering the amount actually paid with the current-year extension in this field.

Enter the amount paid with Form 2350, Application for Extension of Time to File U.S. Income Tax Return. The application prints this amount on Form 1040, line 68, and prints "2350" in the space to the left of that line.

Each time you print the extension (via the File > Print Extensions), the application:

  • calculates the extension payment amount and enters it in this field,
  • prints this amount on the main return, and
  • issues an FYI diagnostic message indicating that you need to verify the amount paid with the extension before filing the return.

Do not delete a previously calculated amount (in blue text) in this field if you want to recalculate the extension. The application updates a calculated amount in this field.

Alternatively, you can overrule the calculated amount by entering the amount actually paid with the current-year extension in this field.

This information is used in the calculation of late filing payment penalties and interest, if applicable.

Enter an amount in this field to indicate an amount paid with Form 1040-V that differs from the calculated balance due on Form 1040.

Note: This force amount paid with Form 1040-V does not affect filing instructions. The original calculated balance due will be reflected on the filing instructions.

This force field also does not affect the printing of Form 1040-V. Per the IRS, Form 1040-V should only be filed with Forms 1040, 1040A, 1040EZ, and 1040NR.

  • UltraTax CS automatically prints the Form 1040-V payment voucher for balance due returns when requested by the IRS. For a balance due on Form 1040, 1040A, 1040EZ, or 1040NR, the IRS requests that Form 1040-V accompany the check as a voucher. If an electronic funds withdrawal is used to pay the balance due, Form 1040-V will not print. UltraTax CS does not prepare Form 1040-V if you are filing Form 1040NR-EZ, 1040-SS, or 1040X.
  • You can choose this option for all new 1040 clients or 1040 clients converted from another tax application vendor, and then override it on a client-by-client basis. Choose Setup > 1040 Individual, click the New Client Options button in the 1040 Product Information dialog, and mark the Suppress Form 1040-V payment voucher checkbox. If you wish to override the global option for the open client, clear the Suppress printing Form 1040-V field in Screen Est.

Enter only those amounts that were not entered in other input screens. The UltraTax CS Source Data Entry utility shares Federal income tax withholding from Forms 1099-B, 1099-B Brokerage Statements, 1099-PATR, and 1099-G to this field.

When a former spouse SSN and name are entered on a single or head of household return, the application prints that SSN in the Spouse's social security number box on the front of the Form 1040. When a former spouse SSN and name are entered on a married filing joint or married filing separate return, the application prints the literal "DIV" and the spouse SSN on Form 1040, line 65.

If joint estimates were paid for the current year and are being divided between separate taxpayer and spouse returns, enter an explanation of how the joint estimates were divided. This statement will be included in the electronic file and will print with a paper return.

2017 Overpayment Application

The code option in this field instructs the application how you want to apply any current-year overpayment. An entry here affects what is printed on lines 76a and 77 of Form 1040.

Note: You can choose this option for all new 1040 clients or 1040 clients converted from another tax application vendor, and then override it on a client-by-client basis. To set the option for all clients, choose Setup > 1040 Individual, click the New Client Options button in the 1040 Product Information dialog, and select the appropriate overpayment type from the Overpayment application fieldview. Then, to override this option for the open client, return to this field and change the overpayment type or leave it blank.

To apply 100 percent of an overpayment to next year's estimated tax when there is not estimated tax due, enter 7 in the Application of 2017 overpayment field.

Mark this checkbox to apply an overpayment coded 7 or 8 without calculating 2018 estimates. Form 1040-ES and the 1040-ES filing instructions will not print. UltraTax CS will not make any calculation of estimated tax liability for the following year. This will only be applied if the Form 1040-ES - 2018 declaration code is left blank.

2018 Estimates - Calculated

The application calculates the estimated tax liability for a client if you enter code 2, 3, 4, 5, 6, 7, or 8 in the Application of 2017 overpayment field, or if you enter code 1, 2, 3, 5, 6, 7, 8, or 9 in the Form 1040-ES - 2018 declaration field. If an underpayment penalty is calculated for the current year and no estimates are requested, the application produces an FYI diagnostic to alert you.

The application provides custom paragraphs that may be included in the estimate filing instructions.

The application also provides options for the display of the estimate filing instructions. One option is to print estimate filing instructions designed for taxpayers who use EFTPS to make their estimated tax payments. Enter X in the EFTPS filing instructions field on Screen Est to enable this option. This is specific to the client. Two more options are available by visiting Setup > 1040 Individual > Other Return Options and clicking the Client Documents tab. Amounts that are entered in the 2018 Estimates paid fields on Screen Est can be indicated as "Paid" on the filing instructions by marking Print "Paid" next to payments indicated as paid on Screen Est in the Estimate Filing Instructions section. The other option is Only print balance due estimates in the filing instructions, which will print estimate filing instructions with only the voucher payments that have a balance due. These are global options.

If the Application of 2017 and Form 1040-ES - 2018 declaration fields are blank, the application does not generate estimate filing instructions or estimate vouchers.

Notes

  • Taxpayers using Schedule H to report wages paid to household employees may be required to make estimated tax payments. Refer to the instructions for Form 1040-ES, Who Must Make Estimated Tax Payments.
  • You can choose options 1 and 3 for all new 1040 clients or 1040 clients converted from another tax application vendor, and then override it on a client-by-client basis. To set this option, choose Setup > 1040 Individual, click the New Client Options button in the 1040 Product Information dialog, and select the appropriate method from the Next year's estimate declaration fieldview.

The options for the Form 1040-ES - 2018 declaration field are listed in the table that follows and in the fieldview.

Code Result
1

Use the current-year liability. This is the default if option 2, 3, 4, 5, 6, 7, or 8 is selected in the Application of 2017 overpayment field.

Notes

  • If the current-year tax is less than the minimum filing requirements, the vouchers do not print.
  • Safe Harbor rules are applied when using this code. The application calculates estimated taxes at 110 percent of the current-year tax if AGI is greater than $150,000 ($75,000 if MFS). 1040-SS clients do not calculate Safe Harbor.
2

Use the current-year liability adjusted by amount below. If this option is selected, 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 liability even if the total liability falls below the minimum amount required to make estimated payments. For 2018 estimates, the application uses 100 percent of the current-year tax liability, if appropriate.

Note: Safe Harbor rules are applied when using this code. See the description of code 1 in this table.

4

Print vouchers with amount fields blank. If this option is selected, the application prints estimate vouchers with the amount fields left blank. No estimate filing instructions are produced when choosing this option. If filing instructions are desired, enter X in the Print estimate filing instructions with blank amounts with Code 4 field.

Notes

  • This option applies to all returns attached to the client that permit use of code 4.
  • Filing instructions can be customized. For more information, see Customizing client documents.
5 Use amounts entered below, before overpayment. If this option is selected, also enter amounts in the Amounts for code #5 or #9 fields. These amounts are adjusted by any overpayment applied.
6

Use current-year amounts adjusted by amounts below. If this option is selected, also enter adjustments in the Amounts for code #6 fields. If the adjustment represents a decrease, enter a negative amount.

Note: The application uses the tax tables or tax rate schedules to calculate line 7 of the 1040ES worksheet. It does not take into account whether the current-year tax was calculated based on a Capital Gain Worksheet. The Tax Projection Worksheet and code 8 can be used when current-year tax is based on a Capital Gain Worksheet.

7

Use current-year liability and suppress vouchers from printing.

Notes

  • Code 7 prevents estimate vouchers from printing; it does not suppress the calculation of the vouchers. If you want to suppress the calculation, leave the Form 1040-ES - 2018 declaration field blank; in the 2016 Overpayment Application section, select 7 in the Application of 2017 overpayment field and mark the With code #7 or #8, do not calculate estimates field. If you choose to suppress the calculation, the following notes do not apply.
  • Estimate filing instructions print; to suppress filing instructions, you can enter X in the Suppress printing of estimate filing instructions with Code 7 field. The client can use the IRS estimate form instead of the application form.
  • Calculated amounts proforma to the following year.
  • If you select 1, Return or 2, Extension in the Electronic funds withdrawal for estimated tax by quarter field(s) on Screen ELF, you will enable an electronic funds withdrawal, and you’ll see a diagnostic message.
  • The client meets the criteria for the Estimate Reminder X Quarter in Data Mining, and the application generates an estimate reminder letter for the client.
8

Use liability from Tax Projection Worksheet. If this option is selected, the application uses the tax less withholding, earned income credit, additional child tax credit, and other payments from the Tax Projection Worksheet. Projected Health care: Individual Responsibility payments are not included in estimates. Further options are available below, under Additional coding for code #8.

Note: 1040-SS and 1040-PR clients cannot use code 8 to calculate estimates. The application defaults to code 1.

9

Use amounts entered below. If this option is selected, enter amounts in the Amounts for code #5 or #9 fields. The vouchers will reflect these amounts and will not be adjusted for any overpayments.

Note: If overpayment codes 7 or 8 are used, the overpayment amount will be applied to next year, but the voucher amounts will not be adjusted by the overpayment.

Enter the amount of increase / decrease for federal income tax withholding expected for 2018. For estimate codes 1, 2, 3, 6, and 7, the application uses the amount entered here to help estimate the amount of tax due for 2018. Enter a decrease as a negative amount.

If you select code 1, 2, 3, 6, or 8 in the Form 1040-ES - 2018 declaration field, enter any amount already paid for each quarter in the appropriate field. The application subtracts these amounts from the quarterly gross estimated tax liability after the application of any overpayment available for the quarter(s) indicated to determine the voucher amounts. If code 5 or 9 is selected in the Form 1040-ES - 2018 declaration field, amounts in these fields will not adjust the voucher amounts. To indicate an estimate already paid when using code 5 or 9, enter the amount in the column 2018 Estimates paid only.

If estimated tax payments are submitted for electronic funds withdrawal (EFW) with an electronically filed extension, the calculated amounts of those payments can be found on Screen ELF. To transfer the amounts of the estimates paid by EFW from Screen ELF to Screen Est, enter X in the Treat code 2 calculated amounts as paid, and transfer to Screen Est, 2018 Estimates paid field(s) field on Screen ELF in the Electronic Filing folder. 

Note: To print the “Paid” amounts on the Estimate Filing Instructions, select Setup > 1040 Individual > Other Return Options > Client Documents and mark Print “Paid” next to payments indicated as paid on Screen Est.

Enter the amount of increase or decrease in taxpayer's / spouse's self-employment income expected for 2018. The application increases or decreases the current-year income by this amount and calculates the change in self-employment tax based on the increase or decrease in income. Enter a decrease as a negative amount.

Enter the amount of increase / decrease in adjusted gross income expected for 2018. The application increases / decreases the current-year income by this amount. Enter a decrease as a negative amount.

Enter the amount of adjustments to other taxes / credits expected for 2018. Enter a decrease as a negative amount.

Note: If you claimed the first-time homebuyer credit in 2008 and the home ceased to be your main home in 2018, include in this field the entire credit you claimed, less exceptions and amounts previously repaid.

Generally, estimated tax payments and withholding should equal at least the smaller of 100 percent of the tax shown on the prior year return or 90 percent of the tax shown on the current year return to avoid an underpayment penalty. If at least two-thirds of gross income is from farming or fishing, the current year percentage is reduced to 66.6 percent. Other exceptions apply for higher income taxpayers and certain household employers. Using Form 1040-ES - 2018 declaration code 8 will calculate estimated taxes based on 100 percent of the tax liability calculated on Form TPW. Entering an additional code here will modify the calculation of estimated taxes from Form TPW. The available options are listed in the table that follows and in the fieldview.

Code Result
A 90%. This will calculate estimated taxes based on 90% of the estimated tax liability calculated on Form TPW.
B 66.6% (Farmers). This will calculate estimated taxes based on 66.6% of the estimated tax liability calculated on Form TPW. This option should only be used when two thirds of gross income is from farming or fishing.
C Desired refund. This will add the desired refund amount entered in the field below to the estimated tax liability calculated on Form TPW.

Note: Code 8 will not calculate for 1040-SS and 1040-PR clients. The application defaults to code 1.

When using Form 1040-ES - 2018 declaration code 8 and Additional coding for code #8 C, enter the amount of refund desired. The application adds this amount to the estimated tax liability calculated on Form TPW to calculate estimated tax payments.

Note: Code 8 will not calculate for 1040-SS and 1040-PR clients. The application defaults to code 1.

The number of estimate vouchers defaults to four. Enter a code in this field if fewer than four vouchers are desired. 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 amounts were paid. This selection determines which vouchers will calculate.

The application automatically updates this field to request vouchers for unpaid quarters when:

  • estimated tax payments are submitted for electronic funds withdrawal (EFW) with an electronically filed extension, and
  • an X is entered in the Treat code 2 calculated amounts as paid, and transfer to Screen Est, 2018 Estimates paid field(s) field on Screen ELF.

If only the first quarter is paid via EFW with an extension, the application transfers 3 = Last three vouchers. If both the first and second quarters are paid via EFW with an extension, the application transfers 2 = Last two vouchers. If the first, second, and third quarters are paid via EFW with an extension, the application transfers 1 = Last voucher.

Note: The application always prints four vouchers unless the Print Form 1040-ES in scannable format and Print only vouchers with balance due checkboxes are marked under Setup > 1040 Individual > Other Return Options > Return Presentation tab.

Enter a rounding multiple for the estimated tax installments. For example, if you wanted to round up each estimated tax installment to the nearest $10, you would enter 10. Rounding is done before applying overpayments or amounts already paid.

Electronic filing note: This option is ignored when electronic funds withdrawal (EFW) is requested for the fourth quarter (which must be paid in January).

If the OCR-A or Scannable format is selected, the application automatically converts the taxpayer identification number into the appropriate check digits. To force different check digits, enter the two-character check digits from the IRS-provided pre-printed label that was mailed to the taxpayer.

Name Change - Estimates

Use this section to print only the taxpayer or spouse name on the 1040-ES vouchers, or if the taxpayer or spouse changed his or her name during the tax year and made estimated tax payments using his or her old name. Information entered in this section prints on a statement which is to be attached to the front of the tax return. If the return is being filed electronically, information from this section will be included in the electronic file. For more information on the requirements for the statement of name change, refer to IRS Publication 505.

Note: When the Require a password to display SSNs checkbox is marked in the Setup > Security > Security Configuration tab, the Social Security number will display as "###-##-####." For more information about masking Social Security numbers, see Masking SSNs for 1040 clients with preparers outside the U.S.

Select T or S to print the 1040-ES estimated tax vouchers for a married filing joint return with only the taxpayer or spouse name instead of both names. The application does not make any calculations in the joint return to determine separate tax liability, however adjustments can be made in the Tax Projection Worksheet and Form 1040-ES - 2018 declaration code 8 can be used. This field is disabled for returns with filing status single, head of household, and qualifying widow(er). Selecting this option does not affect the choice of filing a joint or separate tax return for the following year.

Note: The 1040 Estimate Instructions will use the same name as the vouchers. If proforma'd 1040 Estimate Instructions do not report the same name as the vouchers, confirm that the name variable is [client name - estimates] and not [client name - survivor]. When using this option, the separate transmittal letters and filing instructions will not be combined during printing.

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