Following the release of Revenue Regulation (RR) 4-2021 (p. 7), Plus users who filed Form 2551Q in Q3 and Q4 last year may have a possible overpayment estimate that they will be able to use in preparing their 2551Q Q1 tax return.
Upon generating Form 2551Q in Q1 of this year, 2021, this collapsible banner can be seen.
Once clicked, the user will see the 3% to 1% calculation and difference. The difference represents the possible carry-over that can be used for the current period.
Upon clicking the Use Excess Carry-Over in Line 17 button, available fields will appear where you can enter the details of the carry-over. The excess carryover amount is automatically calculated so users don’t need to second guess.
There is also an auto-validation feature that ensures that the amount you enter will not exceed the allowable amount.
In cases where you are not able to consume all of your available credits, you will still able to use the remaining credits for the next quarterly filing.
If you have further questions regarding Percentage Tax Form 2251Q and C.R.E.A.T.E., just click or tap on the chat icon in the lower right corner of your screen, or consult one of our Partner Firms, today.