Efiling Estimated Tax Payments

[JRFS]

Can someone give me assistance with making estimated tax payments in ProSeries?  Currently, we had set up 2024 NYS and/or NYC estimated tax deposits.  Keep in mind the one efiling returns is not always the one who prepared the return.  Therefore the issue became filing the 2nd, 3rd or 4th estimates.  The 2023 return got filed along with the 1st estimate that was due on 4/15/2024.  When the returns are accepted, no where (in pending, accepted, or all) in the Efile view will you see the 2nd estimate needs to be efiled.  The only way you get the estimate to show is to physically go back into the file thereby updating its status.  You can efile the next estimated payment from within the return, but I went back into pending just to verify that it would now show up (which it did).  Unfortunately, since the person efiling was unaware that the return had to be opened in order to update so we can efile future estimates, those estimates never appeared in pending to be efiled.  Needless to say, we missed some estimates.  I called ProSeries for help, and was basically told that this is the only way for the future estimates to appear for efiling.  It's not even enough that I highlight returns and click "update acknowledgement status".  It just seems like I'm missing something.  I shouldn't have to open every file in order to make their next estimate.  I guess we can keep a list of the clients we did estimated tax payments for, but that seems like a lot of extra work (especially during tax season) in order to know which ones we have to physically reopen.  Any help, insights, shortcuts will be greatly appreciated.

[IRonMaN]

I'm confused, but it is Monday and that is a good day for being confused.  If you want ProSeries to setup up electronic estimate payments, you need to do that with the e-filing of the return.  You can't go back in and "e-file" estimates after the fact through the software.

[JRFS]

Yes, it is a Monday that's for sure.  The estimates were properly set up prior to efiling.  My issue is when you efile the return, it cannot efile the 2nd estimate until the 1st estimate is efiled and accepted.  However, once the 1st estimate is accepted, there is nothing in the Efile Pending view that shows a 2nd estimate is ready to be efiled.  I need to physically go in to that file, open it, it will update the status, then the 2nd estimate awaiting to be efiled will show up in the pending view.  My issue is if no one opens the client file, the 2nd estimate never shows up.  Short of opening every return that is accepted, I was wondering if there is another way to determine which files need estimates to be filed.  This is only our 2nd year using the program so we are still learning.  As I said sometimes the person that efiles the returns did not prepare the return, and doesn't know to be sure to go back into a particular return after efiling is accepted in order to get the next estimated tax payment put in the pending to be efiled.  I apologize if my explanation is not so good.

[IRonMaN]

But the scheduled estimate payments were setup with the filing of the return so I don't think updating the status really has any effect on filing additional estimates.  As a side note, I have my clients pay their own estimates.  Too many things can go wrong with having the software do that.  Either folks decide they want to change the payment amount or the bank account gets closed later in the year or something else comes up that causes a headache for the preparer.

[JRFS]

I totally agree with you.  Other accountants I spoke with said the same - mainly if the bank account changes which seems to happen a little more often due to clients' accounts getting hacked.  I called ProSeries to see if I was doing something wrong.  She remoted in, and saw my issue.  She said that she felt I did have to go into the return to update it, and then efile the next estimate when it appears in pending view.  She mentioned I could request this enhancement to the program, but I'm not sure where I go to give them requests for program improvements.  In the meantime, my process is this:

1. I efile the return, and the 1st estimate

2. After return and 1st estimate is accepted, I have to open the client's file, click on the state tab to go into the NYS return to allow it to update

3.  I can either efile from this view or close it and go into efile view to efile the 2nd estimate.

4.  Once second estimate has been approved, I have to go into the file, go into the State return to allow the update to process

5. I can now efile the 3rd estimate

You can see how this can become a long process.  Keep in mind, we now have to remember which clients had estimates set up for them.

I will suggest to my boss that we do not do estimates this year unless we keep a list to know which clients to go back in to.

[IRonMaN]

All I can say is, I don’t know that the support person knew what they were talking about.  

[JRFS]

I kind of got that feeling too, which is why I decided to ask here.

[IRonMaN]

Looks like NY is screwy.  I found this and there is no way I would waste my time doing this dog and pony show for a client:

Generating and e-filing the individual New York State estimated tax payments in ProSeries

[JRFS]

Yes, NY is very screwy lol.  I think for 2024 we will not be doing estimates for clients.  I just think it's ridiculous that the program doesn't notify you that there are estimates "ready to efile" as it does for tax returns and the 1st estimated payments.  Unfortunately, we didn't find this out until we used this feature this year thinking we were doing a good thing...well you know what they say, "no good deed goes unpunished" lol.  Thank you for all your help and replys.  Greatly appreciated.

[IRonMaN]

You betcha!

[jeffmcpa2010]

"As a side note, I have my clients pay their own estimates. "

Same here.

I provide my clients the ES Vouchers, and addressed envelopes. From that point on they take over the responsibility for the payments.

[sjrcpa]

@jeffmcpa2010

What do you do when electronic payment is required?

[IRonMaN]

We tell them what to pay and let them do their thing.

[Greta]

Virginia recently decided to mandate electronic payments. A check cannot be over $1500! Neither my clients nor I have figured out how to use their online site. My suggestion was to mail over-the-limit checks, and thus far they have been cashed 🙂  Another option is to find a 1099 source of income that can "easily" adjust the Virginia withholding.

For federal estimated payments I used to recommend EFTPS online, but that has now become daunting for older folks. It requires some kind of identity verification? One easy solution is to have 7%-22% withholding on 1099-SSA; or collect RMD towards the end of the year and send a chunk to the IRS. Not all 1099-Rs will send any taxes to Virginia, unfortunately.

[jeffmcpa2010]

I have never had a situation where an electronic payment was required (for federal income taxes) (I live in a no-income tax state).

[PATAX]

@Greta  apply any overpayment to the next year instead of refunding, and this may help reduce the required estimates to below 1500.