1040-US: Balance due for estimated taxes is displaying on the Tax Projection Worksheet

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Question

Why is there a balance due on the Tax Projection Worksheet when calculating estimates using the Tax Projection Worksheet liability amounts?

Answer

Estimated taxes do not include the Health Care: Individual Responsibility penalty. The IRS assesses and collects this penalty in the same manner as an assessable penalty under subchapter B of chapter 68 which is not considered a return-related penalty. By default, UltraTax CS does not include any individual responsibility penalty amounts in the estimated liability if you use code 8 - Use liability from Tax Projection Worksheet in the Form 1040-ES – 2017 declaration field on Screen Est in the Payments folder.

To include the individual responsibility penalty in next year’s estimated taxes using the Tax Projection Worksheet, select code C - Desired refund (enter amount) in the Additional coding for code #8 fieldview on Screen Est in the Payments folder. Then, enter the amount of the individual responsibility penalty in the Amount of refund desired field.

Related topic: Estimated taxes FAQs

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