Payments, Estimates & EIC
31 articles
Articles in Payments, Estimates & EIC
Additional Due Diligence Documentation
Tax Processors Plus Desktop includes a worksheet you can use to document your due diligence with respect to a taxpayer claiming the earned income credit (EIC).
Farmers Underpayment of Tax (2210-F)
Individuals, estates, and trusts with at least two-thirds of their gross annual income from farming or fishing use Form 2210-F to see if they owe a penalty for underpaying their estimated tax.
Other State Withholding
Generally, the Other state Withholding section of the Federal return is used to report any additional state withholdings that your client may have paid that are not accounted for anywhere else.
Other Federal Withholding
Generally, the Other Federal Withholdings section of a tax return is used to report withholdings that are not entered elsewhere in the program.
Federal Tax Paid on Fuels Credit (4136)
Form 4136 is used to claim a credit for certain federal excise taxes paid on fuels.
Estimated Payments from K-1
Form 1041-T, Allocation of Estimated Tax Payments to Beneficiaries is primarily used by a trust to elect under section 643(g) to have any part of its estimated tax payments treated as if it were made by a beneficiary or beneficiaries.
Form 8689 - Allocation of Individual income Tax to the U.S. Virgin Islands
A U.S. citizen or resident alien who is not bona fide resident of the U.S.
How to apply a refund to next year's tax liability
Some taxpayers may want to apply a portion of their overpayment (refund) to next year’s tax liability.
Where Do I Enter State Estimated Tax Payments Paid During the Year?
In Tax Processors Plus Desktop, state estimated payments that were made during the year are entered on the federal side of the tax return.
EIC Checklist
Among the different reasons, the one that is almost always checked is "EIC Checklist was not answered correctly".
Form 8805 - Foreign Partner’s Information Statement of Section 1446 Withholding Tax
Form 8805 is a four-part form a U.S. partnership prepares for each foreign partner to report the amount of effectively connected taxable income (ECTI) and the total tax credit allocable to the partner for the partnership's tax year.
Form 8288-A - Statement of Withholding
Generally, when a foreign person disposes of real property located in the United States as seller or transferor, the buyer or other transferee must withhold a percentage of the amount realized.
Estimates Calculator
A taxpayer who doesn't make required estimated tax payments, or doesn't have enough tax withheld from their income, could be subject to penalties even if they are due a refund on their tax return.
Excess FICA Taxes Have Been Computed
While there is no cap on how much of a taxpayer's wage income is subject to income tax, there is a maximum amount of wages subject to FICA.
How to add a statement regarding marketplace insurance
To attach this statement to the return in Tax Processors Plus Desktop, do the following steps.
Tax Year 2020 - Suspension of Advanced Premium Tax Credit Repayment
The American Rescue Plan Act of 2021 suspends the requirement that taxpayers increase their tax liability by all or a portion of their excess advance payments of the Premium Tax Credit (excess APTC) for tax year 2020.
Form 7202 — historical 2020–2021 credits
The credit for sick leave and family leave for self-employed individuals calculated on Form 7202 is for tax years 2020 and 2021 only.
Form 8962 Shared Policy Allocation Examples
This article shows how to enter the shared policy allocation in Form 8962 Part IV in Tax Processors Plus Desktop for five common scenarios.
Form 8962 - Alternative Calculation Methods
Form 8962, Premium Tax Credit (PTC), contains two parts that may need to be completed in certain situations.
Form 8962 - Premium Tax Credit
If anyone included on a tax return was covered under health insurance through the Health Insurance Marketplace, they will receive Form 1095-A, Health Insurance Marketplace Statement from the Marketplace after the end of the year.
Estimated Payments - IRS Form 1040-ES
Estimated payments should be made on the tax to be calculated on income from self-employment, interest, dividends, alimony, rental income, gains from the sale of assets, and prizes and awards.
Form 1040-V - Payment Voucher
Effective September 30, 2025 the IRS will no longer accept checks in payment of a balance due and Form 1040-V will become obsolete.
Form 2210 - Underpayment of Estimated Tax
Form 2210 is used by individuals (as well as estates and trusts) to determine if a penalty is owed for the underpayment of estimated taxes.
Direct Deposit Information
In Tax Processors Plus Desktop, where you enter direct deposit information in the individual tax return depends on whether the return is being electronically filed or not.
Amount Paid with Extension
If a payment was made with an automatic extension request filed with either IRS Form 4868 or IRS Form 2350 , the payment needs to be included on the Form 1040 when it is filed.