Screen CAExt - California Extension and Payments (1040)

Show expandable text

New (tax) year, new help!

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.

Overview

Use this screen to complete Form 3519.

Use Form 3519 to make a payment with Extension for Individual income tax. California FTB does not require or process Form 3519 extension without a payment.

CA FTB waives the late penalty on unpaid balance of tax due as of April 15, 2023 if taxpayer meets the following:

  • Pays 90 percent of the tax by April 15, 2023. Choose Setup > 1040 Individual > Federal tab > Extensions to choose the approach for calculating the extension payment.

Calculate extension payment to reflect all amounts expected to be paid. When the Include the projected estimated tax penalty in the balance due on extension field on the Extension dialog is marked, the default calculation for the Form 3519 extension payment includes income tax due and use tax due as well as underpayment penalty and contributions.

Calculate extension payment to include minimum amount needed to avoid late penalties and interest. When the Include the projected estimated tax penalty in the balance due on extension field on the Extension dialog is blank, the default calculation for the Form 3519 extension payment includes income tax due and use tax due but excludes underpayment penalty and contributions.

  • Pays remainder of tax by October 16, 2023

No payment due:

CA FTB does not require an extension to be filed in order to waive the late penalty if the other requirements have been met. Furthermore, FTB does not process Form 3519 extension if there is no accompanying payment. Thus, per CA FTB guidelines, UltraTax/1040-CA does not print Form 3519 unless there is a balance due to be paid with extension. Likewise, federal Form 4868 is not applicable if taxpayer is not making a payment for California.

Electronic Filing of Extension Payment:

The California Franchise Tax Board and UltraTax/1040-California support electronic funds withdrawal of Form 3519 extension payment via electronic filing. For complete information on conditions and data entry required to generate the electronic record, see 1040-CA: Extension Payment - Electronic Funds Withdrawal.

See the States that accept the federal extension topic for more information on filing extensions in other states.

Extension

Use this section to calculate the extension form and extend the due date of the return. The extension form is a voucher only; the form is filed only with an amount due. Per state instruction, the voucher is not printed with a blank amount due. Handwritten amounts are not acceptable on the scannable version of Form 3519.

Calculate extension

Enter X to calculate an amount (if any) for Form 3519, Automatic Extension for Individuals. Form 3519 is a voucher and is filed only when there is an amount to be paid to extend the return.

Choose Setup > 1040 Individual > Federal tab > Extensions to choose the approach for calculating the extension payment.

  • Calculate extension payment to reflect all amounts expected to be paid. When the Include the projected estimated tax penalty in the balance due on extension field on the Extension dialog is marked, the default calculation for Form 3519 extension payment includes income tax due and use tax due as well as underpayment penalty and contributions.
  • Calculate extension payment to include minimum amount needed to avoid late penalties and interest. When the Include the projected estimated tax penalty in the balance due on extension field on the Extension dialog is blank, the default calculation for Form 3519 extension payment includes income tax due and use tax due but excludes underpayment penalty and contributions.

To print filing instructions that indicate no extension is required to be filed, choose Setup > 1040 Individual > California tab > Other Return Options button then mark the Print Form 3519 extension instructions when no balance due checkbox and mark the Calculate extension field or enter 0 (zero) in the Balance due on extension (Force) field.

UltraTax CS also enters the applicable due date in the Extended due date field. UltraTax CS automatically enters X in this field if you enter an amount in the Balance due on extension (Force) field.

Extended due date

If an extension is printed by choosing File > Print Extensions, or an entry is made in the Calculate extension field, the extended due date automatically appears in this field. Otherwise, the date manually entered in this field is used as the extended due date in the filing instructions and when calculating late filing penalties.

Extension payment actually made; reportable on main return

Each time you print the extension (via the File > Print Extensions), UltraTax CS does the following:

  • calculates the extension payment amount and enters the amount in this field, and
  • prints this amount on the main return, not on the extension.

Alternatively, you can overrule the calculated amount by entering the amount actually paid with the current-year extension in this field. UltraTax CS then displays the new amount in black.

Notes
  • To delete the overruled amount and restore the original calculated amount, right-click the field and choose Delete overrule.
  • To confirm the accuracy of the overruled amount, right-click the field and choose Acknowledge overruled data. UltraTax CS then disables the acknowledge functionality from the right-click menu. To restore the original amount later, you will need to manually enter the amount.
  • If desired, you can set a user preference to mark fields for which you overruled the calculated amounts and to list all overruled amounts in the Diagnostics window.

Balance due on extension (Force)

If you enter an amount in this field, UltraTax CS calculates the amount of total tax using the estimated payments and withholding entered, marks the Calculate extension field, completes the Extended due date field, and transfers the amount to the Extension payment actually made; reportable on main return field.

Additional payment

Enter the payment amount and the date of the payment. The amount paid is included as a payment on the return. When the date paid is after the original due date, the amount is not included as a payment in the calculation of an extension. The payment reduces the balance due for late interest and penalty calculations as of the date paid.

Payments

UltraTax CS uses this information to complete the Payments section of Form 540 or 540NR.

Use Screen 592B or Screen 593 to transfer withholding entered on federal Screens from Form 540, line 71 to line 73 or from Form 540NR, line 81 to line 83. It is no longer necessary to use this screen to enter data related to withholding from Form 592-B or Form 593.

LLC payments made for members

Enter payments made by a limited liability company on the taxpayer’s behalf. Amounts entered in this field or statement dialog are added to any payments entered in federal input screens and included as other payments on Form 540 or Form 540NR. Form 540NR displays additional text "LLC" per state instruction. FEIN and Name of LLC are required data entry if electronically filing Form 540NR.

IRC 1341 Claim of Right credit

The amount entered in this field is included in the total payments on Forms 540 and 540NR. Text IRC 1341 and the amount of the payment display on the form above the total payments line.

Amount paid with Form 3582 (Force)

If Form 540 or Form 540NR reflects a balance due and taxpayer is not subject to the e-pay mandate, you may enter an amount in this field to force the amount of payment that displays on the Form 3582 payment voucher when filing the return electronically. An entry in this field has no effect on the calculation of Form 540/540NR or the filing instructions.

Statement of Separate Estimates Paid

Use this section to enter estimate information when separately filed estimates were made and the return is now a joint return to calculate the California Statement of Separate Estimates Paid. Enter information to be reported on the Statement of Separate Estimates Paid. The statement prints when any data is entered in this section. UltraTax CS automatically displays the estimated tax payments and dates entered in federal Screen St Pmt with CA postal code when two separate returns have been merged together and California is attached to the return. Information may be entered or adjusted as needed.

Name on estimate payments: Taxpayer / Spouse

UltraTax CS defaults to reporting the current name entered in federal Screen 1040. Use these fields to enter the name used to pay estimates if different.

Was this article helpful?

Thank you for the feedback!