electronic estimates with extension

[cakeen]

When extending a return can a client not only make an electronic payment for whats currently due, but can they make an electronic estimated payment?  

[PhoebeRoberts]

No. You can make a large enough extension payment that you'll have an overpayment to apply towards 2023, but that's the best you can do.

[greg7]

yes, there is a checkbox on the payments page that allows the client to electronically pay estimated taxes for 2023.  

When you select this, it will summarize the four payments in the letter.  If the payments aren't what you want, you can go back to the payments page to override the amounts that will be withdrawn from their bank account.  

//correction - I guess this can't be done with an extension.  (seeing someone else's response)

[PhoebeRoberts]

That checkbox only gets transmitted with the income tax return, not with the extension request. The extension request only files the extension payment.

[cakeen]

Thank you for clarifying.  I didn't think to simply make a larger payment with the extension to cover Q1 estimates.  Where do I manipulate the amount of the payment to be made with an extension?

Thanks!

[George4Tacks]

In Extension screen, enter a big number for Total tax liability. I would compute the Total Payments and enter that. The 4868 should then show how much your client will pay with the extension.

[LauraMac1]

This does not seem to work for state extensions.  There are only four override options, none of which seem to change the amount calculated to be paid with the state extension for Maryland.  I have no ability to enter or access the 502E form either. This is maddening. I can't be the only one who needs the client to make a larger extension payment with their state extension when I know good and well there are outstanding income items they haven't given me.

[Accountant-Man]

This is a two year old post. You should create a new one if you want an answer.

[LauraMac1]

not helpful

[Accountant-Man]

People might not look to a 2 year old post and help. That's my helpful hint.

[LauraMac1]

Okay so I figured it out after much experimentation. Here are my notes so hopefully someone won't have to do this. Couple of nuances that are really helpful.

Go to payments, penalties & extension - go to extensions.  For 4868 (federal) you can simply put in 4868 payment amount to be what you want/need it to be.

Click to state & local tab, enter your estimated income tax and tax withheld so it calculates the difference to be paid with the extension. Here, the "estimated tax payments" {override} is NOT the amount to be paid, so leave that blank. It works like a credit, not a payment.

Note - you cannot see these on the forms preview, you have to actually print the return and view the extension payments that are scheduled to be paid.  The full return is as of the tax return itself and doesn't (yet) reflect the extension payment as a deposit. Go to the 4868 form and your local state form to see the extension payment to be made matches your desired amount. In fact, the payment amounts on the original tax return (draft) are unchanged so ignore those - you aren't transmitting the return.

Last but most importantly. Once the extension has been FILED. Copy your manual payments to the payments "2024 estimated payments" tab to manually enter the amount paid with the extension so that it acts like a CREDIT when you finish preparing the final return. The extension amount does not carry here.

Hopefully this saves someone else a massive headache. Don't know why I can't find simple instructions anywhere else.

Laura