Missouri Overpayment Issue

[DIY998]

I'm wrapping up my Missouri taxes and have an issue.  I have a modest over payment of taxes to the state of $627 which I can validate and shows on line 49 of my MO-1040.  I've also checked the box to apply ALL of my overpayment to 2026 taxes on MO-1040ES Wks, Part II, Line 2b.  However, on MO-1040ES Wks, there's a number I can't understand and it is impacting my overpayment balance.  In MO-1040ES Wks, Part 1, line 1e, regarding 2026 Estimated Tax options, there's an amount showing as "Equal to 100% of overpayment (no vouchers)" of $241, not the $627 from my return.  Further, on MO-1040ES, Part II, lines 1 and 1f, both include the $241 amount, not the actual overpayment of $627.  It then transfers this $241 to MO-1040, Line 50, showing that's the amount of my overpayment to apply to 2026 taxes.  Lastly, the balance at the bottom of the schedule MO-1040, Line 53 is showing $0.  The math for that line is Line 49 (showing $627) less Line 50 (showing $241) less Line 51 (showing $0) less line 52 (showing $0), which should leave a balance due of $386 - but it shows zero??  It is mathematically incorrect???  Also, if I click on the $241 amount in MO-1040ES Wks, Part II, Line 1 regarding the amount of overpayment available, to Go To Supporting Form, it takes me correctly to MO-1040, Line 49 but that balance is $627, not $241.  This seems like an error in the software or either I'm doing something that is causing this error.  Any ideas?

[DaveF1006]

It depends. Tax software often calculates your "Safe Harbor" or estimated tax requirement for the following year (2026) based on your current year's tax liability. If the software determines that your required estimated payment to avoid underpayment penalties for 2026 is exactly $241, it may be capping the "applied overpayment" at that specific amount.

As a result, the software thinks, "You only need to pay $241 to meet the safe harbor for next year, so I'll move $241 over and leave the rest as a refund." 

To get the full $627 to carry forward to 2026, try these steps in your software:

1. Check the "Estimated Tax" Section: Go to the "Federal" or "State" wrap-up sections specifically for 2026 Estimated Taxes. Look for a setting that asks how much of your 2025 refund you want to apply. Ensure it isn't set to "Apply amount necessary to avoid penalty" or "Apply minimum amount." Change it to "Apply entire overpayment." 
2. Override the Voucher Worksheet: If you can click into the $241 field on the MO-1040ES Worksheet, try to manually type $627. In many programs, this will "break" the automatic calculation and force the full amount through to Line 50 of the main return.
3. Review Form MO-1040, Line 51: If there is a number in Line 51, the software is forcing a partial refund. You must zero out the refund line to force the balance into the "Apply to 2026" line (Line 50).

Before you file, ensure your Form MO-1040 (the actual return, not the worksheet) reflects the following:

• Line 49 (Overpayment): $627
• Line 50 (Applied to 2026): $627
• Line 51 (Refund): $0

[DIY998]

DaveF1006,

Thanks for the reply!  Well, I went through the interview process and it did make a few changes.  However, it still has the $241 amount in the MO-1040ES in Part I lines 1e for 100% of overpayment, Part II lines 1 and 2F, even though I added $627 to Part II line 2e for Amount you want to apply but it isn't summing the items, it's stuck on $241.  On the Form MO-140, it still shows my Overpayment on line 49 as $627 and the amount to be applied to 2026 taxes as $241.  The new wrinkle is now it is charging me a penalty for underpayment of $386, which is the difference between the $241 and $627.  When I investigate the penalty, it is odd.  First, I chose annualization method as I did a 4th quarter Roth conversion and fed it the appropriate income elements for doing the annualization.  However, it ignored that and is still doing the long form regular calculation with even payments required.  If it would annualize properly, there would be no penalty.  Second, there seems to be a date problem with the software.  June 15, 2025 was on a Sunday, so the proper tax payment date is June 16, 2025 yet the software is putting payments made on that date in the third quarter.  I actually mailed them on June 13, the Friday before so I changed it in the Tax Payments worksheet and the MO-2210 isn't updating for the change.  So, it seems like it's one step forward and two steps backward!