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How to apply a refund to next year's estimated taxes in ProConnect Tax

by Intuit• Updated 5 months ago

To apply an overpayment (or refund) for an individual return:

  1. Go to Input Return ⮕ Payments, Penalties & Extensions ⮕ 20YY Estimated Tax (1040-ES), W-4, W-4P) ⮕ 20YY Estimated Tax (1040-ES).
  2. Apply the amount by either of these methods:
    • Select one of the options from the dropdown arrow in the Apply overpayment to 20XX, or;
    • Enter the amount of overpayment (or refund) in the field Amount of overpayment to apply to 20XX. ProConnect will apply the overpayment to each voucher in order, until the amount is exhausted, and will print the estimate vouchers for any quarter not credited in full.

To apply individual return overpayment to next year and create one estimated tax voucher

  1. Go to Input Return ⮕ Payments, Penalties & Extensions ⮕ 2024 Estimated Tax (1040-ES,W-4, W-4P, W-4R) ⮕ 2024 Estimated Tax (1040-ES).
  2. Enter the amount of the overpayment as a dollar amount in the field, Amount of overpayment to apply to 2024.
  3.  Enter 1 in the field One voucher only: 1=1st, 2=2nd, 3=3rd, 4=4th.
  4. Scroll down to the Overrides section.
  5. Enter the desired amount in the 1st quarter [O] field.
  6. Enter -1 in the 2nd quarter [O], 3rd quarter [O] and 4th quarter [O] fields.
  7. Check the box next to Do not reduce override by overpayment applied.
  8. Enter the same amount entered in the 1st quarter [O] field in 2024 estimated tax [O].
  • Option 1: applies the overpayment to the first estimated tax payment, refunds any excess, and prints vouchers for remaining quarters not credited in full.
  • Option 2: applies the overpayment to the first and second estimated tax payments in order, refunds any excess, and prints the vouchers for remaining quarters not credited in full.
  • Option 3: applies the overpayment to the first, second, and third estimated tax payments in order, refunds any excess, and prints the vouchers for remaining quarters not credited in full.
  • Option 4: applies the overpayment to the first, second, third, and fourth estimated tax payments in order, and refunds any excess.
  • Option 5: divides the overpayment by four and applies evenly to all quarters, refunds any excess overpayment, and prints vouchers for any quarter not credited in full. When a quarter has passed and the taxpayer hasn't paid an estimate, ProConnect applies the refund evenly to only the remaining quarters.
  • Option 6: applies the entire refund.
    • When the calculated estimated tax for next year is greater than the refund, ProConnect prints estimates for the remaining balance.
    • When the refund is greater than the calculated estimated tax, ProConnect applies the entire refund and doesn't print estimate vouchers.
  • Option 7: sets next year's estimated tax equal to the overpayment on this year's return. This overrides the automatic calculation of estimate vouchers, and no vouchers will print.

To apply an overpayment (or refund) for an Fiduciary return:

  1. Go to Input Return ⮕ Payments, Penalties & extensions ⮕ Estimates (1041-ES)
  2. Select the Next Yr. Estimates tab.
  3. In the Apply overpayment to 2024 field pick the situation that matches.
  4. Complete any other relevant fields.

To apply an overpayment (or refund) for an Corporate return:

  1. Go to Input Return ⮕ Payments, Penalties & extensions ⮕ Estimated Tax.
  2. Select the Next Yr. Estimates tab.
  3. In the Credit to 2024 field pick the situation that matches.
  4. Complete any other relevant fields.

To apply an overpayment (or refund) for an S-Corporate return:

  1. Go to Input Return ⮕ Payments, Penalties & extensions ⮕ Estimated Tax.
  2. Select the Next Yr. Estimates tab.
  3. In the Credit to 2024 field pick the situation that matches.
  4. Complete any other relevant fields.

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