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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

My client paid the first estimated tax installment in April and is now receiving a refund. How can I apply the refund to the second, or later, estimates?

Answer

Enter a code in the Application of 2018 Overpayment field in Screen Est in the Payments folder to indicate how much of the refund should be applied. Enter any Form 1040-ES - 2019 declaration code other than 4, 5, 7, or 9 to indicate how to calculate the amount of the total estimates. Enter the amount of the first installment that was paid in the 2019 estimates paid: 1st payment field. Use the No. of 2019 vouchers desired codes to indicate which vouchers should print.

For example, Susan determined her estimated tax liability would be $8,000 and she paid $2,000 on April 15 with her 1040-ES. Her tax return was put on extension. On June 1 her return was completed with a refund of $3,000. Her total estimated tax liability was recalculated to be $6,000. Susan would like to apply $1,000 of her refund to her estimated taxes. Enter code 8 in the Application of 2018 overpayment field and enter 1,000 in the Amount for code #5 or #8 field. Enter code 1 in the Form 1040-ES - 2019 declaration field and 2,000 in the 2019 estimates paid: 1st payment field. Select 3 = Last three vouchers for No. of 2019 vouchers desired. The application calculates the estimated payments of $1,500 each ($6,000 total), applies the overpayment applied and the estimate paid ($3,000 total) to the earlier estimates, and prints the last two vouchers.

Related topic: Estimated taxes FAQs (1040)

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