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Screen TPW - Tax Projection (1040)

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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.

note

You can enter 0
(zero) in the amount fields in this screen, if applicable.

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.

Print Tax Projection Worksheet

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.

note

You can choose this option for all new 1040 clients, then override it on a client-by-client basis. To set the option for all clients, select Setup
then 1040 Individual
, select New Client Options
in the 1040 Product Information dialog, and mark the Print Tax Projection Worksheet
box. Then, to override this option for the open client, return to this field and clear the box.

Proforma:
If you do not want to proforma this field, select Setup
then 1040 Individual
, select Other Return Options
, select the Proforma
tab, and clear the Print Tax Projection Worksheet (Screen TPW)
box.

Projection date printed on TPW Worksheets (Force)

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.

Default asterisk (*) fields to current year amounts

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.

note

Fields with asterisks contain non-recurring items (such as capital gains and tax on lump-sum distribution) that normally do not default to current-year amounts.

*Credit fields report in the

2026

column with the same amount reported on the

2025

return. The credits are not recalculated.

*Force fields do not default to the current-year amounts. You may use these amounts to override those calculated on the Tax Projection Worksheets.

When this field is marked, you will receive an FYI diagnostic to remind you that when the Tax Projection Worksheet prints, the amounts in the asterisked fields will have defaulted to current year amounts.

Filing status

Enter the filing status in this field if it is different for next year.

note

When the current year filing status is Married filing joint, and either the taxpayer or spouse includes a current year date of death, the Tax Projection Worksheet will automatically change the filing status for next year. If there are dependents, the TPW will use the Qualifying widow(er) filing status. If there are no dependents, the TPW will use the Single filing status.

Dependents

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.

note

Dependents in the Dependent information statement on the 1040 screen with Mos Home entries of 77 (reported on odd year return), 88 (reported on even year return), or 99 (not reported on return) will be factored into next year's projected number of dependents.

Dependents that do not proforma to next year (indicated in the Do Not Proforma
column in the Dependent information statement on the 1040 screen) will not be factored into next year's projected number of dependents.

Dependents age 6 to 17 for child tax credit (Force)

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.

note

You can enter 0
(zero) in this field.

Dependents age 0 to 5 for child tax credit (Force)

note

You can enter 0
(zero) in this field.

Other dependents for credit for other dependents (Force)

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.

note

You can enter 0 (zero) in this field.

Dependents for earned income credit (Force)

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.

note

You can enter 0
(zero) in this field.

Generally, a dependent child that turns 19 in the following year will not be used in the next year EIC projection. Since UltraTax CS cannot determine whether a child turning 19 will attain full-time student status, you must enter information in this field for those individuals.

Full time-students that turn 24 in the following year will not be used in the next year EIC projection. Dependents age 19 to 22, currently identified as students in the Dependent information statement on the 1040 screen will be used in the next year EIC projection.

Dependents identified as disabled in the Dependent information statement on the 1040 screen will be used in the next year EIC projection, regardless of age.

Number of boxes checked for aged/blind

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.

Dependent on another's return

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.

note

If the taxpayer or spouse is a dependent of another for the current year but will not be a dependent of another on next year's return, enter code 3 in the Dependent of another
field on the 1040 screen. The TPW will project next year's tax without the dependent of another status for the taxpayer or spouse as applicable.

Standard/Itemized deduction option

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.

note

When this field is blank, the Tax Projection Worksheet will default to the information entered in the Standard/itemized deduction (Force)
field on the 1040 screen.

When both the Standard/itemized deduction (Force)
field on the 1040 screen and this field are blank, UltraTax CS will optimize for the maximum deduction for next year.

All dividends are qualified

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.

note

This field will be shaded when the Dividend income
field is blank or when data is entered in the Qualified dividends
field.

Qualified dividends

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.

note

When the Dividend income
field is blank, dividends and qualified dividends will default to the current year's qualified dividends.

Use the All dividends are qualified
field if the projected qualified dividends is equal to the total dividends.

This field will be shaded when the Dividend income
field is blank or when data is entered in the All dividends are qualified
field.

Tax-exempt interest

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.

Taxable state/local refund

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.

Net s-t cap gains/losses

Enter any anticipated short-term capital gains or losses the client expects next year.

note

If both the Net s-t cap gains/losses
and Net l-t cap gains/losses
fields are blank, the current-year capital loss carryover (limited to $3,000 / $1,500 if married filing separately) will be reported as the next year capital gain / loss amount. If there is an amount in either field, any current-year capital loss carryover will not be included in next year's capital gain / loss amount. If you enter data in either field, be sure to include the current-year capital loss carryover.

Net l-t cap gains/losses

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.

note

If both the Net s-t cap gains/losses
and Net l-t cap gains/losses
fields are blank, the current-year capital loss carryover (limited to $3,000 / $1,500 if married filing separately) will be reported as the next year capital gain / loss amount. If there is an amount in either field, any current-year capital loss carryover will not be included in the next year capital gain / loss amount. If you enter data in either field, be sure to include the current-year capital loss carryover.

Net 28% cap gains/losses

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.

Unrecaptured sec. 1250 gain

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.

Gross SS benefits

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.

note

When the Gross SS benefits
field is blank, UltraTax CS automatically applies the next-year social security cost-of-living adjustment (COLA) to current year gross social security benefits. The COLA is 5.9 percent (0.059).

When the Gross SS benefits
field is blank and there is a current-year date of death for a married filing joint return, the greater of the taxpayer or spouse's current-year gross social security benefits is used.

Other income

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.

note

If you do not enter data in this field, the following items default to the current-year amount of other income for next year's projected amount.

Items with code 1
entered in the SE Inc? column of the Other income
statement on the Income screen and/or amounts entered on the 1099M screen with code 1
indicated in the Subject to self-employment tax
field will be considered self-employment income subject to self-employment tax.

Items with code 2
(or blank) entered in the SE Inc? column of the Other income
statement on the Income screen and/or amounts entered on the 1099M screen with code 2
(or blank) indicated in the Subject to self-employment tax
field will be not
be considered self-employment income and will not be subject to self-employment tax.

Deductible part of SE tax (Force)

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.

Other income: 2555 exclusion

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.

note

Data in this field is ignored if the Other Income
field located in the General Information & AGI Items section of this screen is blank.

IRA deduction (Force)

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.

Other adjustments: 2555 housing

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.

note

Data in this field is ignored if the Other adjustment
field located in the General Information & AGI Items section of this screen is blank.

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.

note

To force the calculated self-employment tax and deduction for self-employment tax, enter an amount in the Self-employment tax (Force)
field on the TPW-2 screen and in the Self-employment tax adj (Force)
field on the TPW screen.

Wages, salaries and tips

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.

note

If using the W-4 Withholding Worksheet to calculate projected withholding and the taxpayer or spouse has more than one job, enter the amounts for next year's wages for each job in the Amount of wages (Force)
field in the W4 screen.

Partner's net SE income/loss

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.

Farm income/loss

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.

note

CRP payments entered in the F screen and excluded from self-employment income in the current year will also be excluded in determining next year's projected self-employment tax.

Total SE income subject to self-employment tax (Force)

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.

note

Use the Total wages not subject to Social Security tax (Force)
field in the TPW screen for any wages not subject to self-employment tax, in addition to including such wages in the Total SE income subject to self-employment tax (Force)
field.

Total wages not subject to social security and Medicare W/H (Force)

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.

note

Any amount entered in this field should also be included in the Total SE income subject to self-employment tax (Force)
field in this screen. For additional information, refer to the Tax Projection Worksheet FAQs and select the "How do I enter minister or clergy information for the Tax Projection Worksheet?" link.

Schedule A

Use this section to enter projection information for next year's Schedule A. Enter the total allowable amount unless otherwise noted.

Gross medical expenses

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.

State/local income or sales tax

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.

Real estate 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.

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.

Other 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.

Disaster casualty/theft losses

Enter only personal casualty and theft losses that were incurred in a federally declared disaster area.

Net Capital gain / Qualified dividends

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.

note

Amounts entered in this field will not change the investment interest expense deduction reported on the Tax Projection Worksheet.

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.

note

The Traditional IRA Deduction Worksheet does not calculate automatically if there are gross Social Security benefits or taxable IRA distributions for the current year. Both of these items default to current year information if the applicable fields are not completed. You will need to complete the IRA deduction (Force)
field in the General Information and AGI Items section of this screen to report IRA deductions on the Tax Projection Worksheet.

Covered by a retirement plan?

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.

IRA contribution

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.

note

To adjust the Tax Projection IRA compensation earned amount only, use the Adjustment to earned income for Tax Projection Wrk
fields on the IRA screen. For example, you can use these fields to include certain non-tuition fellowship and stipend payments that are allowed for tax years beginning after December 31, 2019 (per the Further Consolidated Appropriations Act). Note that negative entries are treated as subtractions.

Married filing separate and lived apart entire year

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.

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Screen TPW - Tax Projection (1040)

Overview

Tax Projection - General Information & AGI Items

Taxpayer and Spouse Earned Income

Schedule A

Traditional IRA Deduction