How does the state extensions screen function?
Beginning in Drake 17, there is a new State Extensions (STEX) screen added to the 1040 package, located at the bottom of the States tab. This screen can be used to generate all state extensions from the same location. If the generate options on the STEX screen are not available for a particular state, that state extension screen has been linked for ease of use.
Generate Extensions Based on Current Year Data
- Open the STEX screen.
- On the first tab you have several choices on generating extensions:
- Generate all eligible state extensions using the current-year data provided - This checkbox will generate all eligible state extensions, as long as there is a state return being calculated. The software will generate an extension form typically with the current year calculated amount due. If the state results in a $0 due calculation and allows a $0 due extension this will also be generated.
- Generate all eligible state extensions with a $0 payment, if necessary - Mark this box to generate $0 extension for the states/cities that allow or require an extension to be filed even when no payment is due. The state return for which an extension is needed, must be generated on the return for this checkbox to apply.
Reason for Extension
If the state requires a reason for requesting an extension, type that reason into the Reason for Extension text box. Only Connecticut, Georgia, Kentucky, New Mexico, and Pennsylvania require such a statement. Otherwise, your entry will not be carried to the state extension request.
States/Cities Requiring More Information
Some states and cities require you to provide more information before an extension can be generated. These are listed on the right with hyperlinks to the appropriate data entry.
States/Cities allowing multiple/additional EXT products
There are a few states and cities that allow for multiple extensions to be generated for a particular return. These states and cities require additional data entry as well before a state/city extension may be generated. Examples include the AL PPT or various state SMLLCs where some basic data entry is required and the extension form generated since there may be several of each type of return for a single taxpayer. In these instances, click the blue link to make the necessary entries and generate the extension:
Manual Extension Generation
This section can be used in addition to, or in lieu of Generate all eligible state extensions using the current-year data provided. The manual section can also be used in addition to or in lieu of the Generate all eligible state extensions with a $0 payment, if necessary option. The Manual Extension Generation section behaves as an override for the particular state entered, if or when either of the Generate all options has been marked. Select the State/City in the droplist and enter a payment amount (if applicable).
If you need assistance in calculating the payment amount, you can use the link for Extension Payment Worksheet. Complete the applicable lines, close the worksheet, and the payment amount resulting from this entry will be automatically populated in the field for the state entered. Any amount entered in the Payment Amount field after the worksheet has been completed will behave as an override for the worksheet calculation.
Amount Paid with Extensions
When you are ready to file the regular return, you have two options. Both options are available on the STEX screen by clicking the tab Amount Paid with Extension at the top or by going to the STX2 screen. Here you can either:
- Check the box Ready to file all regular returns, or
- Check the box Ready to file regular return next to the state(s) that you are ready to file.
Note: By selecting Ready to file, you are verifying that the calculated payment amount (gray) is correct. If the taxpayer paid a different amount than what was calculated, enter the amount actually paid in the override field. If the Amount Paid box is empty, the software will default to the Calculated Amount as having been paid.
If you use the state specific data entry screen to generate the extension and check that you are ready to file the regular return, that information will automatically be carried to the STX2 screen. If you later need to have the extension show again, be sure to remove the checkbox on both the STX2 and state specific EXT data entry screens.
See the video, STEX Screen, for a demonstration.