Payment, Estimates & EIC Menu
The following items are in the payments, estimates & EIC menu:
Estimated Payments from K-1
This amount is automatically pulled by the program from the entries made on Form 1041 K-1 line 13A. To get to the K-1 menu;
- Go to the Main Menu of the tax return (Form 1040)
- From the menu, select Income
- Then Rents, Royalties, Entities (Schedule E, K-1, 4835, 8582)
- Select K-1 Input
State Estimated Payments
Enter the sum of the state estimated tax payments made for the present tax year. Extra payments from the tax return of the prior year that was supposed to be credited to the estimated tax of the present year are also included here. The State Estimated Payments menu enables you enter estimated payments made to various states. Each estimated payment carries to its applicable state.
Other Federal Withholdings (Form 1099)
Federal income tax withheld on Forms 1099-R, W-2, W-2G and Federal tax withheld on interest income, dividends, unemployment compensation, social security benefits are summed up and entered on Form 1040. In case the taxpayer has federal withholding whose origin has not been reported anywhere else in the program, they can enter that amount here.
NOTE: For a return with amount entries in Other Federal Withholdings to be e-filed, they have to be marked as being withheld from Form 1099. Failure to do so will hinder e-filing and mailing will be the only option for the return.
Other State Withholdings
Additional State Withholdings paid by your client but have not been accounted for elsewhere are included on this line. It is to the indicated state return that entries in this menu will flow to.
Excess FICA & Medicare Tax
Employers withholding more than the required amount of income, Social Security, or Medicare taxes from their employees’ wages must refund the employees for the excess. The refund must happen before the calendar year comes to an end. Overpayment normally occurs as a result of the taxpayer working multiple jobs through the year, earning a high salary. Taxx Savage Pro figures out whether excess Social Security and Medicare tax is withheld and the excess reported in the Payments, Estimates & EIC menu.
Shareholders LT Gains … 2439
When a mutual fund retains part of its long term capital gains and taxes are paid on the undistributed amounts, the undistributed capital gains will be reported to mutual fund shareholders. Taxpayer’s share of these gains are treated as distributions, despite the taxpayers not receiving them. They are however not included on Form 1099-DIV. Form 2439 is used to report the amounts to the taxpayer.
Undistributed capital gains (box 1a of Form 2439) are reported on Schedule D, Form 1040 as long term capital gains. On the Unrecaptured Section 1250 Gain Worksheet, enter the portion reported as Unrecaptured Section 1250 Gain. Follow the reporting details under Section 1202 Exclusion for any gain on qualified small business stock. On line 1 of the 28% Rate Gain Worksheet, in the Schedule D instructions, enter the collectible gain. You can also claim credit for the amount of tax paid on Form 1040.
Federal Tax Paid on Fuels Credit … 4136
Form 4136 can be used to claim credit for some non taxable uses of fuel within the income tax year. Taxpayers claiming the alternative fuel credit, credit for a diesel-water fuel emulsion or a credit for an alcohol fuel mixture, biodiesel or renewable diesel mixture or even an alternative fuel mixture can use Form 4136.
Rather than claiming annual credit on Form 4136, a taxpayer may file either of the following:
Apply Refund
The amount of the overpayment that the taxpayer would like to be applied to the following year’s estimated tax is entered here. This amount is applied to the IRS account except when there is a statement requesting the IRS to apply it to the account of the spouse. The social security number of the spouse is to be included in the attached statement.
Farmers Underpayment of Tax … 2210-F
Form 2210-F is used to determine any underpayment penalty. Either box 1a or 1b have to be checked for you to attach Form 2210-F to the return. However, Form 2210-F is not to be completed in the event that neither boxes apply to the taxpayer and they owe a penalty. The IRS can determine the penalty and issue a bill to the taxpayer.
Virgin Islands Tax Allocation … 8689
Form 8689 is used to determine the amount of US tax that can be allocated to the US Virgin Islands (USVI). Citizens of the US or resident aliens (other than a legal resident of the USVI) who had income originating from the USVI or may owe tax to the USVI, which is computed as a percentage of the US tax liability.
Other Items in the Payments, Estimates & EIC menu
- IRC 1341 Repayment Amount
- Premium Tax Credit (PTC) ... 8962
- Estimated Payments Made for 2019
- Earned Income Credit ... Sch EIC
- Additional Child Tax Credit ... 8812
- Amount Paid with Extension ... 4868
- Health Coverage Tax Credit ... 8885
- Direct Deposit Information
- Generate 2019 Estimates ... 1040-ES
- Payment Voucher ... 1040-V