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Prepayments in Returns for Accountants

This article applies to:Avalara Returns for Accountants

 

Some jurisdictions require that a business make a prepayment in tax prior to the next month's filing of the actual sales liability. 

For example, if a business is required to make prepayments, the January return filed in February will require a prepayment for the February tax period to be filed in March. The prepayment paid in February with the January tax period return can then be claimed as a credit on the actual February return filed in March, in addition the March prepayment.

Prepayment requirements are typically based on a certain annual or semi-annual liability thresholds, which varies by taxing authority. Avalara calculates prepayment amounts based on historical transaction data, so we recommend importing the full prior year's transactions. Refer to the sections below for information on the prepayments that Returns for Accountants supports for each taxing authority. Contact the taxing authority if you're unsure of a client's prepayment submission requirements.

Prepayment calculation methods

  • a fixed amount set periodically by the taxing authority
  • based on some prior period tax liability
    • prior month
    • same month prior year**
    • average of prior year
  • current month's* liability or percentage thereof
  • current month's* liability plus a percentage thereof

*current month liability references tax collected the month the prepayment is due, not the current period that is being filed from the prior period. Example: June data is filed in July with the July prepayment. A current period calculation would be based on the July sales tax data to be reported in August. Avalara doesn't automatically calculate prepayments based on the current month's liability, because the required transaction data generally isn't available.
** same month prior year references the month the prepayment is due and the corresponding prior year month. Example: If the prepayment is due in January with the December sales tax return, the prepayment is calculated from the prior year's January return that was filed in February.

Frequency of prepayments

The frequency of prepayments varies depending on the taxing authority and the taxpayer's liability.

  • Weekly: Once per week
  • Bi-monthly: Twice per month
  • Monthly: Once per month
  • Inverse-quarterly: Related to monthly filing; when selecting this frequency, you are putting your form on a monthly frequency. The first two months of a quarterly period are filed as inverse-quarterly, while the quarterly form is filed in the third month.
    • Generally this filing frequency is used in CA, IA, NJ, and NY. In these states, you file a quarterly return, but in the off quarter months, you make prepayments. 
    • For example, January and February are set as inverse-quarterly returns; there is no detail to the return and the only figure is the total liability. The quarterly return in March then takes these inverse-quarterly payments and reduces the quarterly liability by the prepayment amount.
  • Quarterly: Every three months
  • Annual: Once a year
    If you need to file an annual return on a fiscal year instead of calendar year, make sure to select the correct fiscal year end month and effective from dates when you add the filing calendar.

Reporting formats

Prepayments are reported in one of three ways:

  • Included on the regularly filed tax returns: Prepayments are included on the tax return.
  • Separate prepayment form: The state has a separate form for prepayments, and you need to add it as a separate filing calendar to make these prepayments.
  • Electronic payment through taxing authority website: The state doesn't have a separate form for prepayments, and payments via the taxing authority website. In this case, Avalara has added separate prepayment filing calendars as placeholders to ensure that the prepayment amounts are factored into the returns you file via Returns for Accountants. Make sure to add the separate prepayment filing calendars.

Taxing authorities

Alabama

  • Determination period range: January to December
  • Requirement threshold: Monthly sales tax average is greater than $2,500
  • Frequency: Monthly
  • Due date: By the 20th of the month
  • State-approved calculation methods: The AL DOR provides two calculation methods:
    • 66.67% of liability same month prior year
    • 66.67% of current month liability
  • Avalara-supported calculation methods: 67% of the same month prior year liability
  • Reporting format: Prepayments are reported directly on the sales tax return, and show as a prior payment adjustment on the next month's return
  • Set-up instructions: Add the AL 2100 filing calendar. The default prepayment percentage of 100% results in Avalara calculating the prepayment amount as 67% of the same month prior year liability.
    • If you haven't imported a full year of transaction data, you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: Manual web file

Arizona

  • Determination period range: January to December
  • Requirement threshold: Combined tax liability for transaction privilege, telecommunication services excise, and county excise taxes in preceding calendar year was $1,600,000 or more
  • Frequency: Annual
  • Due date: June 20th
  • State-approved calculation methods: The AZ DOR provides two calculation methods:
    • One half of the actual tax liability from the month of May
    • The actual tax liability from June 1 through June 15 (current month*)
  • Avalara-supported calculation methods: 50% of the actual tax liability from the month of May.
  • Reporting format: Payment is made via the AZ DOR website, and Avalara has added the AZ TPT ES filing calendar as a placeholder.
    Prepayments made via the AZ TPT ES filing calendar appear as prior payments on the AZ TPT2 return.
  • Set-up instructions: Add the AZ TPT ES filing calendar. The default prepayment percentage of 100% results in Avalara calculating the prepayment amount as 50% of liability from May of the prior year.
    • If you haven't imported a full year of transaction data, you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: Manual web file

Arkansas

Returns for Accountants doesn't calculate or remit prepayments in AR, but you can add prepayment filing calendars to help keep track of the prepayment amounts you make outside of Returns for Accountants.

  • Determination period range: January to December
  • Requirement threshold: Average monthly net sales are greater than 200,000
  • Frequency: Bi-monthly
  • State-approved calculation methods: The AR DOR provides two calculation methods:
    • The state provides a schedule of two equal prepayments
    • One payment equal to 80% of current month liability
  • Due date: The due dates depend on the prepayment calculation method:
    • If your client is making two equal payments, the 1st payment is due on the 12th, and the 2nd payment is due on the 24th.
    • If your client is making a single payment, it's due on the 24th.
  • Avalara-supported calculation methods: Avalara doesn't automatically calculate prepayments in AR.
  • Reporting format: Payments are made via the ARTAP website, and Avalara had added the AR sales 1st prepay and AR sales 2nd prepay filing calendars as placeholders.
    Prepayments made via the AR prepay filing calendars appear as prior payment adjustments on the AR ET1 return.
  • Set-up instructions: Add the AR sales 1st prepay and AR sales 2nd prepay filing calendars.
    • Avalara doesn't automatically calculate prepayments in AR, so you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: Manual web file

California

  • Determination period range: Subject to state review. Contact the CDTFA is you're not sure of the determination period for a client.
  • Requirement threshold: Average monthly taxable sales is $17,000 or more
  • Frequency: Inverse quarterly
  • Due date: 24th of the month
  • State-approved calculation methods: Refer to the CDTFA website for information about state-approved calculations. The calculation method varies based on the period for which prepayment is due.
  • Avalara-supported calculation methods: 100% of monthly liability
  • Reporting format: Payment is made via the CDTFA website, and Avalara has added the CA Prepayment filing calendar as a placeholder.
    Prepayments made via the CA Prepayment filing calendar appear as prior payments on the CA CDTFA 401 A2 or CA CDTFA 401 A2 Outlet return.
  • Set-up instructions: Add the CA Prepayment filing calendar. The default prepayment percentage is 100%, which means that Avalara calculates the prepayment as 100% of the current period liability. If you need use a different calculation method, edit the filing calendar and enter a different prepayment percentage: 
    • Enter 90% to calculate the state's minimum requirement
    • If you haven't imported a full year of transaction data, you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: Manual web file
  • Additional information: The prepayment for the period of May 1 through June 15, which is due on June 24th, uses a different calculation method. Avalara doesn't automate this calculation, so you'll need to adjust the prepayment amount when you prepare the prepayment filing calendar for that month.

Florida

  • Determination period range: July to June
  • Requirement threshold: If you paid $200,000 or more in state sales and use tax on returns you filed during the most recent state fiscal year (July 1 through June 30), you must make an estimated sales tax payment every month, starting with the December return, due January 1
  • Frequency: Monthly
  • Due date: 20th of the month
  • State-approved calculation methods:
    • Average tax liability: 60% of the average monthly sales tax amount during the previous calendar year (beginning on the December tax return due in January)
    • Current month of previous year tax liability: 60% of the tax liability from the same month in the previous year
    • Current month liability: 60% of the tax liability that will be due with the next return. Avalara doesn't support this calculation method. If you want to use this method, you'll need to enter the amount as a prepyament adjustment each month
  • Avalara-supported calculation methods:
    • 60% of the average monthly sales tax amount during the previous calendar year
    • 60% current month prior year liability
    • Fixed amount
  • Reporting format: Prepayments and prior payments are reported on the FL DR15 and FL DR15CS returns.
  • Set-up instructions: Add the FL DR15 or FL DR15CS filing calendar. The default prepayment percentage is 100%, which means that the prepayment is calculated as 60^ of the prior calendar year average liability. If you need use a different calculation method, edit the filing calendar: 
    • Enter a prepayment percentage of 60% to calculate the prepayment as 60% of the current month from the prior year
    • Enter a fixed dollar amount
    • If you haven't imported a full year of transaction data, you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: File electronically in Returns for Accountants

Georgia

  • Determination period range: January to December
  • Requirement threshold: Tax liability is greater than $60,000 for the preceding year
  • Frequency: Monthly
  • Due date: 20th of the month
  • State-approved calculation methods: State-determined fixed figure provided in a notice (50% of the average prior year monthly liability)
  • Avalara-supported calculation methods: State-determined fixed figure provided in a notice
  • Reporting format: Prepayments and prior payments are reported on the GA ST3 Sales and GA ST3 Schedule for Outlets returns.
  • Set-up instructions: Add the GA ST3 Sales or GA ST3 Schedule for Outlets filing calendar, and enter the fixed prepayment amount.
  • Filing method: Manual web file

Illinois

Returns for Accountants doesn't calculate or remit prepayments in IL, but you can add prepayment filing calendars to help keep track of the prepayment amounts you make outside of Returns for Accountants.

  • Determination period range: April to March
  • Requirement threshold: Average monthly liability is greater than $10,000 in preceding 4 calendar quarters
  • Frequency: Weekly: 7th, 15th, 22nd, and the last day of the month (or following business day if the above falls on a weekend/holiday)
  • State-approved calculation methods: State-determined figures are provided. The state gives a full quarter's weekly prepayment schedule.
  • Avalara-supported calculation methods:  Avalara doesn't automatically calculate prepayments in IL.
  • Reporting format: Payment is made via the IL sales 1st prepay, IL sales 2nd prepay, IL sales 3rd prepay, and IL sales 4th prepay filing calendars.
    Prepayment amounts remitted through these filing calendars flow to the IL ST1 return as prior payments.
  • Set-up instructions: Add the IL sales 1st prepay, IL sales 2nd prepay, IL sales 3rd prepay, and IL sales 4th prepay filing calendars. Avalara doesn't automatically calculate prepayments in IL, so you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: Manual web file

Kentucky

  • Determination period range: January to December
  • Requirement threshold: Monthly tax liability average is greater than $10,000
  • Frequency: Monthly
  • Due date: 20th of the month
  • State-approved calculation methods:
    • Actual liability for the 1st through 15th of the month the prepayment is due
    • 50% of tax liability for the current month same year
  • Avalara-supported calculation methods: 50% of tax liability for the current month same year
  • Reporting format: Prepayments and prior payments are reported on the KY 51A103 return.
  • Set-up instructions: Add the KY 51A103 filing calendar. The default prepayment percentage is 100%, which means that the prepayment is calculated as as 50% of liability from the current month of the same year.
    • If you haven't imported a full year of transaction data, you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: File electronically in Returns for Accountants
  • Additional information: If a client switches from the KY 51A102 to the KY 51A103, the KY 51A103 does not pull in the prior year data from the KY 51A102. You'll need to manually enter the prepayment amounts on the KY 51A103 return.

Massachusetts

  • Determination period range: January to December
  • Requirement threshold: In the preceding calendar year collected and remitted over $150,000 in sales tax or in-room occupancy and meals tax.
  • Frequency: Monthly
  • Due date: 25th of the month
  • State-approved calculation methods: Actual liability for the 1st through 21st of the month prior to which the prepayment is due
  • Avalara-supported calculation methods:
    • First build: Calculate 80% of the prior month's liability
    • Standard calculation: Actual liability for the 1st through 21st of the month prior to which the prepayment is due
  • Reporting format: Payment is made via the Mass.gov website, and Avalara has added the MA Prepayment filing calendar as a placeholder.
    Prepayments made via the MA Prepayment filing calendar appear as prior payment credits on the MA ST9 return.
  • Set-up instructions
    • Add the MA Prepayment filing calendar. The default prepayment percentage is 100%, which means that the prepayment is calculated as 80% of the prior month's liability.
      • On the 22nd of each month, Avalara recalculates the prepayment amount based on transactions with dates between the 1st and the 22nd of the current month. If this amount is greater than the original estimated amount, the new amount is used as the prepayment for the month.
    • If you haven't imported a full year of transaction data, you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: Manual web file

Michigan

  • Determination period range: January to December
  • Requirement threshold: Calendar annual liability for sales and/or use tax is greater than $720,000
  • Frequency: Monthly
  • Due date: 20th of the month
  • State-approved calculation methods:
    • 75% of prior month liability
    • 75% same month prior year
  • Avalara-supported calculation methods: 75% of liability from the same month of the prior year
  • Reporting format: Payment is made via the MI Sales 1st Prepay and MI Sales 2nd Prepay filing calendars.
    Prepayment amounts remitted through these filing calendars flow to the standard MI5080 return as prior payments.
  • Set-up instructions: Add the MI Sales 1st Prepay and MI Sales 2nd Prepay filing calendars. The default prepayment percentage is 100%, which means that the prepayment is calculated as 75% of liability from the same month of the prior year.
    • If you haven't imported a full year of transaction data, you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: Manual web file

Missouri

Returns for Accountants doesn't calculate or remit prepayments in MO, but you can add prepayment filing calendars to help keep track of the prepayment amounts you make outside of Returns for Accountants.

  • Determination period range: July to June
  • Requirement threshold: Average monthly Missouri state sales tax equals or exceeds $15,000 during at least six of the previous 12 months
  • Frequency: Quarter-monthly:
    • The first seven days of the calendar month
    • The 8th to the 15th day of the calendar month
    • The 16th to the 22nd day of the calendar month
    • The 23rd day to the end of the calendar month
  • Due date: Quarter-monthly payments are considered timely if paid within three (3) banking days after the end of each quarter-monthly period. A banking day does not include any Saturday, Sunday, or holiday observed by the U.S. Postal Service. The taxpayer should ensure an electronic payment is received by the Department of Revenue on the due date.
  • State-approved calculation methods
    • To compute your quarter-monthly payment for each week if filing on an actual basis, multiply your taxable sales for the weekly period by 4.225% x 90% x 98%. To compute your quarter-monthly payment for your food locations for each week if filing on an actual basis, multiply your taxable sales for the weekly period by 1.225% x 90% x 98%.
    • If filing the estimated amount, you must remit 100% of the estimated amount. The 2 percent timely payment discount has already been figured into the estimated payments. Any additional discount deducted on estimated payments will result in an underpayment and be subject to penalty.
  • Avalara-supported calculation methods: Avalara doesn't automatically calculate prepayments in MO.
  • Reporting format: Payment is made via the MO sales 1st prepay, MO sales 2nd prepay, MO sales 3rd prepay, and MO sales 4th prepay filing calendars.
    Prepayment amounts remitted through these filing calendars flow to the standard MO returns as prior payments.
  • Filing method: Manual web file
  • Set-up instructions: Add the MO sales 1st prepay, MO sales 2nd prepay, MO sales 3rd prepay, and MO sales 4th prepay filing calendars. Avalara doesn't automatically calculate the prepayment amount, so you'll need to calculate the amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.

North Carolina

  • Determination period range: January to December
  • Requirement threshold: Monthly tax liability average is greater than $20,000
  • Frequency: Monthly
  • Due date: 20th of the month
  • State-approved calculation methods:
    • 65% of current month
    • 65% same month prior year
    • 65% average liability in preceding calendar year
  • Avalara-supported calculation methods: 65% same month prior year
  • Reporting format: Prepayments and prior payments are reported on the NC E500 E536 return.
  • Set-up instructions: Add the NC E500 E536 filing calendar. The default prepayment percentage is 100%, which means that the prepayment is calculated as as 65% of liability from the same month of the prior year.
    • If you haven't imported a full year of transaction data, you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: File electronically in Returns for Accountants

New Jersey

  • Determination period range: January to December
  • Requirement threshold: Collected more than $30,000 in Sales and Use Tax in New Jersey during the prior calendar year; and collected more than $500 in the first and/or second month of the current calendar quarter.
  • Frequency: Inverse quarterly
  • Due date: 20th of the month
  • State-approved calculation methods: 100% of monthly liability
  • Avalara-supported calculation methods: 100% of monthly liability
  • Reporting format: Prepayments are reported on the NJ ST51 form, and appear as prior payments on the NJ ST50 return.
  • Set-up instructions: Add the NJ ST51 filing calendar. The default prepayment percentage is 100%, which means that the prepayment is calculated as 100% of the previous month's liability. 
    • If you haven't imported a full year of transaction data, you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment 
  • Filing method: Manual web file

New York

New York has several prepayment methods.

Inverse quarterly

Use this prepayment method if your client files the NY ST810 quarterly return and meets the requirement threshold.

  • Determination period range: June to May
  • Requirement threshold: If your liability is $300,000 or more in a quarter
  • Frequency: Inverse quarterly
  • Due date: By the 20th of the month
  • State-approved calculation methods:  100% of monthly liability
  • Avalara-supported calculation methods: 100% of monthly liability
  • Reporting format: Payment is made via the NY ST809 filing calendar.
    Prepayment amounts remitted through this filing calendar flow to the NY ST810 quarterly return as a prior payments credit.
  • Set-up instructions: Add the NY ST809 filing calendar. The default prepayment percentage is 100%, which means that the prepayment is calculated as 100% of the current month's liability.
    • If you haven't imported a full year of transaction data, you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: Manual web file

PrompTax

Use this prepayment method if your client files the NY ST810 quarterly return and is meets the PrompTax requirement threshold.

  • Determination period range: June to May
  • Requirement threshold: If liability is more than $500,000 between June 1 - May 31st
  • Frequency: Monthly
    Refer to the NY Department of Taxation and Finance website for more information on the payment periods.
  • Due date: Three business days after the 22nd
  • State-approved calculation methods:
    • If you use the actual method, your payment must be equal to at least 90% of your actual sales and use tax liability for days 1 through 22 of the current month
    • If you use the estimated method, your payment must be at least 75% of one-third of your liability for the comparable quarter of the preceding year
    • For both methods, sales tax participants must also electronically pay the balance of their monthly tax liability for day 23 through the end of the month by the PrompTax due date in the succeeding month.
  • Avalara-supported calculation methods: Avalara doesn't automatically calculate PrompTax prepayments in NY.
  • Reporting format: Payment is made via the NY PromptTax filing calendar.
    Prepayment amounts remitted through this filing calendar flow to the NY ST810 quarterly return as prior payments.
  • Set-up instructions: Add the NY PrompTax filing calendar. Avalara doesn't automatically calculate PrompTax prepayment amounts, so you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: Manual web file

ST-330

Use this prepayment method if your client files the NY ST100 or NYST101 return and chooses to make an advance payment toward their sales tax liability.

  • Determination period range: June to May
  • Requirement threshold: No threshold requirements
  • Frequency: Inverse quarterly
  • Due date: By the 20th of the month
  • State-approved calculation methods: no approved calculation
  • Avalara-supported calculation methods: 100% of monthly liability
  • Reporting format: Payment is made via the NY ST330 filing calendar.
    Prepayment amounts remitted through this filing calendar flow to the NY ST100 or NY ST101 returns as a prior payments credit.
  • Set-up instructions: Add the NY ST330 filing calendar. The default prepayment percentage is 100%, which means that the prepayment is calculated as 100% of the current month's liability.
    • If you haven't imported a full year of transaction data, you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: Manual web file

Ohio

  • Determination period range: January to December
  • Requirement threshold: $75,000 in any calendar year
  • Frequency: Monthly
  • Due date: 23rd of the month
  • State-approved calculation methods:
    • 75% same month prior year (per safe harbor method mentioned on website)
    • 75% current month
  • Avalara-supported calculation methods: 75% same month prior year
  • Reporting format: Prepayment and prior payments are reported on the OH UST1 return.
  • Set-up instructions: Add the OH UST1 filing calendar. The default prepayment percentage is 100%, which means that the prepayment is calculated as 75% of liability from the same month of the prior year.
    • If you haven't imported a full year of transaction data, you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: Manual web file

Oklahoma

  • Determination period range: Fiscal year (July to June)
  • Requirement threshold: Average monthly liability is greater than $2500
  • Frequency: Monthly
  • Due date: 20th of the month
  • State-approved calculation methods:
    • 90% of liability for 1st - 15th of current month
    • 50% of same month previous year
  • Avalara-supported calculation methods: 50% of same month previous year
  • Reporting format: Payment is made via the Oklahoma Tax Commission website, and Avalara has added the OK Monthly Prepayment filing calendar as a placeholder.
    Prepayments made via the OK Monthly Prepayment filing calendar appear as a prior payment credit on the standard OK return.
  • Set-up instructions: Add the OK Monthly Prepayment filing calendar. The default prepayment percentage is 100%, which means that the prepayment is calculated as 50% of liability from the same month of the prior year.
    • If you haven't imported a full year of transaction data, you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: Manual web file
  • Additional information:
    • Returns for Accountants doesn't allow a $0.00 prepayment amount on the OK Monthly Prepayment filing calendar.
    • In order for the prepayment amount to flow to the OK return as a prior payment credit, the registration ID must match exactly in both filing calendars.

Pennsylvania

  • Determination period range: July to September
  • Requirement threshold: 3rd quarter liability is greater than $25,000
  • Frequency: Monthly
  • Due date: 20th of the month
  • State-approved calculation methods:
    • If  liability was $25,000 or more but less than $100,000, 50% of same month previous year
    • 50% of actual liability for the current period.
      If liability is greater than $100,000 then you must remit 50% of liability for the same month prior year
  • Avalara-supported calculation methods: 50% of the same month prior year tax liability
  • Reporting format: Prepayments are reported on the separate PA Monthly Prepayment filing calendar
    Prepayments made via the PA Monthly Prepayment filing calendar appear as a prior payment credit on the standard PA 3R return.
  • Set-up instructions: Add the PA Monthly Prepayment filing calendar. The default prepayment percentage is 100%, which means that the prepayment is calculated as 50% of liability from the same month of the prior year.
    • If you haven't imported a full year of transaction data, you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: Manual web file
  • Additional information: In order for the prepayment amount to flow to the PA return as a prior payment credit, the registration ID must match exactly in both filing calendars.

Rhode Island

  • Determination period range: No period determination
  • Requirement threshold: All tax payers, unless the taxpayer has an average liability of less than $200 per month for the preceding 6 months and has contacted the Rhode Island Division of Taxation to request Quarterly filing frequency
  • Frequency: Monthly, with an annual true-up
  • Due date: 20th of the month
  • State-approved calculation methods: Full month liability
  • Avalara-supported calculation methods: Full month liability
  • Reporting format: Prepayments are reported on the separate RI T204M filing calendar
    Prepayments made via the RI T204M filing calendar appear as a prior payment credit on the standard RI T204R Annual return.
  • Set-up instructions: Add the RI T204M filing calendar. No additional prepayment configuration is required, because the prepayment is always the total liability due for the monthly filing period.
  • Filing method: Manual web file
  • Additional information: If you begin making prepayments for a client mid-year, keep track of any prepayments they've made outside of Returns for Accountants. You'll need to factor those  prepayment amounts into the prior payment credit on the RI T204R Annual return at the end of the year.

Texas

Returns for Accountants doesn't calculate or remit prepayments in TX, but you can add the prepayment filing calendar to help keep track of the prepayment amounts you make outside of Returns for Accountants.

  • Determination period range: None
  • Requirement threshold: Texas allows taxpayers to make prepayments and claim a prepayment discount on the tax return. Refer to the TX Comptroller website for additional information about prepayment discount eligibility.
  • Frequency: Monthly
  • Due date: The prepayment report and tax prepayment are due on or before the 15th day of each month
  • State-approved calculation methods: 90% of the same month prior year
  • Avalara-supported calculation methods: Avalara doesn't automatically calculate prepayments in TX.
  • Set-up instructions: No set up required as the customer is responsible for adding the prepayment to their liability amounts.
  • Reporting format: Payment is made via the TX Monthly PrePayment filing calendar.
  • Filing method: Manual web file
  • Set-up instructions: Add the TX Monthly PrePayment filing calendar. Avalara doesn't automatically calculate prepayments in TX, so you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: Manual web file

West Virginia

  • Determination period range: January to December
  • Requirement threshold: Average monthly liability is greater than $100,000
  • Frequency: Annual
  • Due date: June 20th
  • State-approved calculation methods:
    • Actual liability June 1st - 15th
    • 50% of May liability
  • Avalara-supported calculation methods: 50% of May liability
  • Reporting format: Prepayments are reported on the separate WV Prepay filing calendar
    Prepayments made via the WV Prepay filing calendar appear as a prior payment credit on the following month's tax return.
  • Percentage settings: 100% = 50% of May liability of same year
  • Set-up instructions: Add the WV Prepay filing calendar. The default prepayment percentage is 100%, which means that the prepayment is calculated as 50% of liability from May of the same year..
    • If you haven't imported a full year of transaction data, you'll need to calculate the prepayment amount outside of Returns for Accountants and then enter the amount as a prepayment adjustment.
  • Filing method: Manual web file

 

 

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