Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Federal input screens

Screen TPW - Tax Projection (1040)

Overview

Use this screen to enter information you expect to be different for this client next year. This data is used to create the Tax Projection Worksheet based on current tax law and next year's tax law differences that exist at release time, which you can use for your client's tax planning needs. Enter only the items that you expect to be different for the coming tax year. If you do not expect any of the amounts to be different for the coming tax year, the current year amounts will transfer to the next year automatically. Any items marked with an asterisk (*) in the TPW screen do not automatically transfer to the next year column unless there is data entered in the applicable TPW screen field.

Tax Projection - General Information & AGI Items

Use this section to enter general information for the Tax Projection Worksheet. The worksheet prints automatically if this screen has any information.
The worksheet prints automatically if this screen has any information. Mark this field to print the Tax Projection Worksheet if no data is entered in the TPW screen.
This date prints on Tax Projection Worksheet 1, 2, IRA (TPW), Qual Bus Inc (TPW), Qual Bus Inc Ded (TPW) and Child Tax Cr\ODC (TPW). To print this date on these worksheets for all clients, select
Setup
,
1040
,
Other Return Options
 then
Other
 tab and mark the
Print date on TPW
 box. This field overrides the Other Return Option field and does not update automatically.
When you mark this field, asterisked (*) fields on the TPW and TPW-2 screens default to current-year amounts. If you need to override the current-year amount in an asterisked field, simply enter another amount in the applicable field. That amount will print on the Tax Project Worksheet.
Enter the filing status in this field if it is different for next year.
The calculation for next year's number of dependents is based on data in the current year return. For example, next year's dependents will be adjusted if the taxpayer or spouse has a date of death, or a dependent has the
Do Not Proforma
 field marked in the statement attached to the Dependent Information field (1040 screen in the General folder). Enter the number of dependents for next year, if different from the current year.
The calculation for the number of dependents who will qualify for the child tax credit in the next year is based on the data in the current year return. (For example, a child tax credit will not be projected for a child that turns 18 in the following year.) If there will be a change next year not represented by current year data (for example, a child is born next year), use this field to enter the total number of dependents that will qualify for the credit.
Both the nonrefundable Other Dependents Credit and refundable Child Tax Credit calculate on the
Tax Projection Worksheet - Child Tax Credit/ODC Worksheets
. The credit amount(s) determined on this worksheet are included in the Child tax credit/credit for other dependents line and Additional child tax credit line, respectively, on the Tax Projection Worksheet. Enter an amount in the
Additional child tax credit
 field in the TPW-2 screen to adjust the calculated credit.
The calculation for the number of dependents who will qualify for the child tax credit in the next year is based on the data in the current year return. (For example, a child tax credit will not be projected for a child that turns 18 in the following year.) If there will be a change next year not represented by current year data (for example, a child is born next year), use this field to enter the total number of dependents that will qualify for the credit.
Both the nonrefundable Other Dependents Credit and refundable Child Tax Credit calculate on the
Tax Projection Worksheet - Child Tax Credit/ODC Worksheets
. The credit amount(s) determined on this worksheet are included in the Child tax credit/credit for other dependents line and Additional child tax credit line, respectively, on the Tax Projection Worksheet. Enter an amount in the
Additional child tax credit
 field in the TPW-2 screen to adjust the calculated credit.
The number of other dependents that qualify for the credit for other dependents next year will calculate automatically based on data in the current-year return. Other dependents include children over age 17 but under age 19, full-time students aged 19 to 24, a disabled child of any age, and other qualifying (non-child) relatives. A diagnostic message will indicate when dependents who do not meet the definition of a qualifying child for the child tax credit are treated as other dependents in determining the projected credit for other dependents. If there will be a change next year not represented by current year data, use this field to enter the total number of other dependents that will qualify for the credit.
The number of dependents who qualify for earned income credit next year will calculate based on the data in the current year return. If there will be a change next year not represented by current year data (for example, a child is born next year, or a child attains student status), use this field to enter the total number of dependents who will qualify for the credit.
Enter the number of boxes marked for the aged and blind for next year if it is different from the current year. By default, the additional standard deduction for taxpayers meeting next year's age requirements calculates automatically.
Enter the applicable code to identify if the taxpayer and/or the spouse will be a dependent of another in the following year. This information is used to calculate the standard deduction for a dependent of another.
To force a different method for the following year than the one used in the current year, enter
1
 to indicate standard deduction, or enter
2
 to indicate itemized deductions.
When an
X
 is entered in this field, the amount entered in the
Dividend income
 field will be treated as qualified dividends and eligible for a lower tax rate than other ordinary income. Use the
Qualified dividends
 field when the amount of qualified dividends is not the same as the dividend income amount.
Enter the amount of qualified dividends that will be eligible for a lower tax rate than other ordinary income. To calculate TPW tax, the amount of qualified dividends must also be included in the
Dividend income
 field.
Enter the tax-exempt interest the client expects for next year, if different from the current year. This information is used to calculate the taxable Social Security benefits and the earned income credit.
Enter the taxable state and local refund amount expected for next year if it is different than the calculated amount. UltraTax CS nets the amounts from Worksheet 10 (Tax Refund Worksheet – 20YY State and Local Refunds) and Worksheet 11 (Tax Refund Worksheet – No Tax Benefit Derived) to calculate next year’s projected taxable state and local refund.
Enter any anticipated short-term capital gains or losses the client expects next year.
Enter the total long-term capital gain or loss the client expects for the next year. This information is used to calculate any net capital gain to be taxed using the maximum capital gains rates for regular and alternative minimum tax. The number in this field should include the net 28 percent capital gain or loss and the unrecaptured section 1250 gain. Enter the portion of the long-term capital gain that is subject to a 28 percent rate and an unrecaptured section 1250 gain in the fields provided. UltraTax CS produces a worksheet to show the alternative minimum tax on capital gains, if applicable.
Enter the 28 percent capital gain or loss portion of the amount in the
Net l-t cap gains/losses
 field. This information is used to calculate the taxable capital gain or loss and the alternative minimum tax on capital gains. The number in this field is used as the basis of the 28 percent tax on capital gains. UltraTax CS produces a worksheet to show the alternative minimum tax on capital gains, if applicable. This amount is not used to calculate taxable income. It must also be in the
Net l-t cap gains/losses
 field to be included in taxable income.
Enter the unrecaptured section 1250 gain portion of the amount in the
Net l-t cap gains/losses
 field. This information is used to calculate the tax using the maximum capital gains rates for regular and alternative minimum tax, if applicable. The number in this field is used as the basis of the 25 percent tax on capital gains. UltraTax CS produces a statement to show the alternative minimum tax on capital gains, if applicable. This amount is not used to calculate taxable income. It must also be included in the
Net l-t cap gains/losses
 field to be included in taxable income.
The taxable amount of Social Security benefits received next year calculates automatically. The calculation automatically includes any tax-exempt interest from the current tax return automatically. Enter an amount in the
Tax-exempt interest
 field if you expect it to be different next year. Survivor benefits are automatically projected, when applicable.
Enter the amount of other income to be included as a component of total income before any adjustments to arrive at AGI. The amount entered in this field is not considered to be self-employment income and, therefore, will not be included in the calculation of self-employment tax.
Next year’s excess business loss calculates using next year’s thresholds as follows: Subtract the applicable next-year threshold from the total of projected wages, business income/loss, other gains/losses, Schedule E income/loss, Farm income/loss, and unemployment benefits. The amount exceeding the next-year threshold of $510,000 for married filing joint returns ($255,000 for all other filers) is included in the total Other income amount.
The deduction for self-employment tax calculates automatically based on the projected self-employment earnings. Enter an amount in this field to force the calculated deduction for self-employment tax.
UltraTax CS uses the current-year Form 2555 exclusion amount in the TPW, TPW Foreign Earned Income Tax Worksheets, or the TPW IRA deduction calculation if an amount is not entered here and in the
Other Income
 field above.
If the current-year Foreign Earned Income Tax Worksheets have an excluded itemized deduction amount on line 2b, then the TPW Foreign Earned Income Tax Worksheets default to the same amount. To adjust the total projected amount reported on line 2c of the TPW Foreign Earned Income Tax Worksheet, adjust the amount entered in this field.
Enter an amount to override the calculated IRA deduction. The IRA deduction calculates if there are no gross Social Security benefits or taxable IRA distributions for next year. The IRA deduction calculates if the IRA deduction is calculated for the current year. You can enter
0
 (zero) in this field.
UltraTax CS uses the current-year foreign housing deduction amount in the TPW, TPW Foreign Earned Income Tax Worksheets, or the TPW IRA deduction calculation if an amount is not entered here and in the
Other adjustments
 field above.

Taxpayer and Spouse Earned Income

Use this section to enter information specific to the taxpayer and/or spouse for the coming tax year. Enter all income subject to or affecting self-employment taxes. The self-employment taxes calculate automatically, as well as the deduction for self-employment taxes for next year purposes.
Enter the amount of wages, salaries, and tips to be used in the next year. If this field is blank, the amount defaults to the current year's wages minus the following exceptions: Form 2555 non-cash allowance, taxable adoption benefits, taxable dependent care benefits, excess moving reimbursements, excess rental income, and taxable scholarship income.
Enter the partner's net self-employment income / loss expected for the following year for taxpayer and spouse, if different from the current year amounts. These amounts are used to calculate the self-employment tax. They are not used to calculate taxable income. If you enter an amount in this field, you must also enter it in the
Sch E income loss
 field to calculate taxable income.
Enter the amount of farm income/loss expected for next year for the taxpayer and spouse if different from the current year amounts. These amounts are used to calculate the self-employment tax.
Enter an amount to force the amount of income used to determine self-employment tax. The amount entered is used to calculate the total self-employment tax and the deduction for self-employment tax. The amount entered is not reflected in the total income reported on line 16 of the Tax Projection Worksheet. Self-employment income included in the calculation of taxable income should be entered in the appropriate field in the TPW screen.
Enter an amount to force the amount of wages not subject to Social Security and Medicare withholding for purposes of the self-employment tax calculation. For example, use this field to enter minister wages that are projected to increase in the subsequent year. The amount entered is used in the calculation to determine the total self-employment tax and the deduction for one-half of the self-employment tax. The amount entered is not reflected in the total income reported on line 1 or 16 of the Tax Projection Worksheet. Wages included in the calculation of taxable income should be entered in the
Wages, salaries and tips
 field in the TPW screen.

Schedule A

Use this section to enter projection information for next year's Schedule A. Enter the total allowable amount unless otherwise noted.
Enter
gross
 medical expenses in this field. The AGI limitation for any remaining deductible medical expense is applied automatically, factoring in the individual's age next year.
Enter total state and local income taxes or sales taxes paid in this field. A $10,000 limitation ($5,000 for married taxpayers filing separately) is applied to the aggregate of all state and local income/sales taxes, real estate taxes, and personal property taxes.
Enter total real estate taxes paid. A $10,000 limitation ($5,000 for married taxpayers filing separately) is applied to the aggregate of all state and local income/sales taxes, real estate taxes, and personal property taxes.
Enter total personal property taxes and other taxes paid in this field. A $10,000 limitation ($5,000 for married taxpayers filing separately) is applied to the aggregate of all state and local income/sales taxes, real estate taxes, and personal property taxes.
Enter all other taxes that are not state and local taxes and not subject to the $10,000 ($5,000 for married taxpayers filing separately) SALT limitation.
Enter only personal casualty and theft losses that were incurred in a federally declared disaster area.
Enter the net capital gains and/or qualified dividends expected to be treated as investment income for next year. This amount is used to calculate the TPW tax.

Traditional IRA Deduction

Use this section to enter traditional IRA information for the Tax Projection Worksheet. The Traditional IRA Deduction Worksheet calculates automatically if the deduction is calculated for the current year. Enter only items you expect to be different for the coming tax year.
Enter information in this field only if retirement plan coverage will differ from the current year. If this field is blank, the retirement plan information in the IRA screen, located in the Retirement folder, or the W2 screens is used.
Enter the amount of traditional IRA contribution the taxpayer or spouse expects to make in the following year. If this field is blank, the information in the IRA screen, located in the Retirement folder, is used. The next-year traditional IRA deduction calculates using the maximum contribution allowed for next year if UltraTax CS calculated the current-year IRA deduction, or if you entered $6,000 (or $7,000 if eligible) in the
IRA contribution
 field in the IRA screen.
If the filing status is married filing separately, and the taxpayer is expected to live apart from the spouse for all of the following year, enter
X
. Use this field only if the taxpayer did not file as married filing separately and lived apart for all of the current year.
Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close