How do I apply an overpayment to next year in an 1120, corporate return?
To apply the current-year overpayment to next year, the corporation’s current-year taxable income must be greater than 0 (zero).
On screen W, accessible from the first Other Forms tab, choose an OP code and enter the refund amount you want to apply in the first quarter field. If you wish to spread the refund over several quarterly payments, enter the partial refund amount for each quarter. There are no estimated tax vouchers in an 1120 return. In view mode, review Form 1120-W and Estimate Summary to see the calculation of estimated tax expected to be paid by the corporation.
If current-year taxable income is not greater than 0 and you want to apply the current-year overpayment to next year, enter a positive amount on line 1, Taxable income expected for the tax year, at the top of screen W.
If you have made the above entries, and the overpayment is not being applied, check to ensure that the PRNT screen does not have the selection Do not calculate Form 1120-W worksheet based on 20YY taxable income marked. If this box is marked, the Form 1120-W is not calculated and the software will not carry any overpayment information to the return.