Estimates

Facts

Enter the following information for a sample client:

All 2005 payments were made on the due date.

Program Considerations

• The program determines whether the taxpayer must make estimated tax payments based on the IRS guidelines. You can elect to apply an overpayment on the current year's return to estimated tax for the following year. You can also choose to force estimated tax vouchers to print regardless of the estimated tax amount.
• When entering estimate payments, it is necessary to enter the date of payment only if it is different from the due date of the payment.
• The Proforma program transfers the prior year's calculated voucher amounts into the "Voucher amount (memo)" fields for reference purposes. If the taxpayer actually paid the amount shown for each voucher, enter "1" in the field "1 to Treat all 'Voucher amount (memo)' entries as 'Amount paid' entries."
• When applying the overpayment to the next year, you can either select an option from the table or enter a dollar amount.

How?

To enter estimated tax payments:

1. Open the sample client.
2. Open the 2005 Estimated Tax Payments screen from the Contents tab.
   
3. Enter the information from the 2005 Estimated Payments table above in the appropriate input fields.

To apply an overpayment:

1. Open the 2006 Estimates/W-4 screen from the Contents tab.
   
2. Enter the information from the 2006 Estimates table above in the appropriate input fields.

Tips & Shortcuts

You can override the estimates and keep the program from making any calculations by entering amounts for all four quarters and entering the total in the 2006 Estimated Tax [O] field.

Review

You should have entered estimates and produced the following estimates for the sample return:

Troubleshooting

Problem: All of my estimates are equal.

Solution: Make sure you selected option 6 in the Apply overpayment to 2006 field.

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