1040-State ELF: Electronic funds withdrawal

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

Change to CS Support service hours

Our Support department is closed on [[date]]. However, limited UltraTax CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline.

Links to our most popular tax processing topics are available in the Alerts and notices section on the right side of most pages.

To ensure the successful debit of an electronic funds withdrawal request for a state balance due return that is being electronically filed, there are certain data entry requirements within UltraTax CS.

Extensions Only

For state extensions, electronic extensions are supported only for the following states: Arizona, California, Connecticut, District of Columbia, Delaware, Kentucky, Louisiana, Massachusetts, Maryland, New York, New Jersey, North Carolina, Pennsylvania, Tennessee, Texas and Vermont. All of these states that support extensions electronically also support Electronic Funds Withdrawal of the balance due on extension. Some states require the balance to be paid electronically or you may still pay by payment voucher. Refer to the state extension instructions, the state input screens, or the state frequently asked questions for these requirements.

Estimated tax payments

The states of California, Connecticut, Colorado, Illinois, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Nebraska, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, Tennessee (LLCs only), and Wisconsin allow for the direct debit of estimated tax payments. 

Electronic Funds Withdrawal for State Returns

There is additional data entry required when requesting an electronic funds withdrawal for a balance due state return, extensions payments, or estimated tax payments. The state return will not default to directly debiting the balance if an electronic funds withdrawal is present on the federal return.

Note: Not all state tax authorities support the electronic funds withdrawal method of payment: Idaho, Indiana and Missouri taxing authorities do not support electronic funds withdrawal.

Required Data Entry

Within the applicable state input screens, access the General folder > Screen Bank and complete the following:

  1. Mark the box to Enable electronic funds withdrawal for a balance due return
  2. Enter a Date of withdrawal (if no date is entered, the original return due date will be used).

    Notes

    • If filing after the original deadline of the return, the date of withdrawal MUST be the current date (or date the return will be filed).
    • You cannot select a date for withdrawal for the District of Columbia.
  3. Enter the client's bank account information if it has not already been entered on federal Screen Bank (within the General folder in the federal input screens).

The state filing instructions should now reflect that the balance will be paid by electronic funds withdrawal, and therefore can be used to confirm successful data entry.

Some states offer the ability to force the amount to be paid with the debit, other than the amount due. However, the amount of debit cannot exceed the balance due as shown on the return, or the debit request will be rendered invalid and will NOT be included in the electronic file.

Non-US financial institution

Taxing authorities need to distinguish international ACH transactions (IATs). To indicate this, complete the following steps. 

  1. Go to the federal General input folder, click the Info tab and enter the applicable information in the Non-US financial institution fields.
  2. Go to the state input, click the General folder, then click the Info tab and enter X in the Non-US financial institution field if the account identified on that screen is used for IATs. 

Because state agencies cannot process an IAT, UltraTax CS suppresses the direct deposit or electronic funds withdrawal when the Non-US financial institution field is marked. This suppression is noted in the diagnostic messages and the account information is omitted from forms, client documents, and electronic returns.

Share This