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Screen ILEstC - Illinois Estimates (1120)

Overpayment Application

The code options available in this field are the same as those in the application. They instruct the application how to apply any current-year overpayment. The selected code affects what is printed on Page 1 of the return and the calculation of next year’s estimated tax payments. The overpayment options are listed in the dropdown list and in the following table.
Code
Result
1
Refund 100 percent of overpayment. This is the default option.
2
Apply 100 percent of the overpayment to next year’s estimates; refund the excess. This option applies the overpayment to each estimate in full until the overpayment is exhausted or all estimated payments are made, in which case the excess is refunded.
3
Apply to next year’s first estimate; refund excess.
4
Apply equally to all next-year estimate; refund excess. This option divides the total overpayment by the number of payments wanted, applies this amount to each estimate, and refunds any excess overpayment.
5
Apply the portion of the overpayment shown in the Overpayment to be applied (Code 5 or 8) field to the estimates until the amount is exhausted or all payments are made, in which case the excess is refunded.
6
Apply to next year’s 1st and 2nd estimates; refund excess.
7
Apply 100 percent of this year’s overpayment to next year’s estimates; give no refund.
8
Apply the amount specified in the Overpayment to be applied (Code 5 or 8) field to next year’s estimate. This option lets an overpayment to be specified even when estimates are not needed or generated.

Estimates

The code options available in this field are the same as those in the application, except for code
4
. They tell the application which method to use to determine the amount of next year’s estimated tax.
If you enter code
2
 through
7
 in the Application of current year overpayment field, the application defaults to option 1 in the Form IL-1120-V - declaration for next year field. If both of these fields are blank, the application doesn't generate estimate vouchers or estimate filing instruction information. The estimate vouchers produced by the application are not approved for handwritten use; therefore, the option to print blank vouchers is not provided.
The options for the Form IL-1120-V - declaration for the next year field are listed in the dropdown list and in the following table.
Code
Result
1
Use the current-year income tax liability; if less than $400 use zero. This is the default if you enter code
2
,
3
,
4
,
5
,
6
, or
7
 in the Application of current year overpayment field.
If the current year’s tax less than the minimum filing requirements, the vouchers don’t print.
2
Use the current-year income tax liability plus the adjustment in the Amount to adjust current year liability (Code 2) field. If you use this option, also enter an adjustment to the current-year tax liability in the Amount to adjust current year liability (Code 2) field. If the adjustment represents a decrease, enter a negative amount.
3
Use the current-year tax liability, even if the total liability falls below the minimum amount required to make estimate payments.
5
Use the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) fields, before overpayment. If you select this option, the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) fields are adjusted by any overpayment applied.
8
Use the projected tax liability. Estimates are prepared even if the projected tax liability is less than $400.
9
Use the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) fields. If you select this option, the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) fields are not adjusted by any overpayment applied.
Use these fields to specify the estimate amounts for each quarter. These amounts won’t be adjusted by the amounts entered in the Next year estimates already paid fields.
If the code
5
 is entered in the Form IL-1120-V - declaration for next year field, enter the quarterly payments in these fields. These amounts are adjusted by the overpayment applied.
If the code
9
 is entered in the Form IL-1120-V - declaration for next year field, enter the desired quarterly payments in these fields. These amounts won’t be adjusted by the overpayment applied.
Use these fields to enter any estimate payments already made toward the next year.
If the code
1
,
2
, or
3
 is entered in the Form IL-1120-V - declaration for the next year field, these amounts and the overpayment applied are subtracted from the calculated quarterly gross estimated tax liability to determine the net estimate amounts.
If code
5
 or
9
 is entered in the Form IL-1120-V - declaration for the next year field, these amounts don’t adjust the amounts entered in the Amounts for next year’s estimates (Code 5 or 9) fields.
The number of estimate vouchers defaults to
4
. Enter a code to specify fewer than 4 vouchers. 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 the amounts were paid. The options for the number of vouchers are listed in the dropdown list and in the following table.
Code
Result
4
4 vouchers are generated. This is the default option.
3
The last 3 vouchers are generated. Any unpaid balance from the 1st estimate is included in the 2nd estimate voucher.
2
The last 2 vouchers are generated. Any unpaid balance from the 1st or 2nd estimate is included in the 3rd estimate voucher.
1
100 percent of the gross estimated tax liability is allocated to the 4th voucher.
A
100 percent of the gross estimated tax liability is allocated to the 1st voucher.
B
100 percent of the gross estimated tax liability is allocated to the 2nd voucher.
C
100 percent of the gross estimated tax liability is allocated to the 3rd voucher.
This field lets rounding specifications to be entered for the estimated payments. The estimated payments can be rounded up to the nearest factor indicated. For example, to round up each estimated payment to the nearest $10, enter
10
. If this field is blank, the application rounds each estimated payment up to the nearest dollar.
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