New Tax Act

[co]

Will PS update PS24 software for new tax act so that we users / subscribers can use Tax Planner in PS24 accurately when serving clients via 2025 projections? 

[BobKamman]

If they do, would you trust it? Or consider it  a starting point to check your own calculations using intracranial synapses?  

Are you recalculating 2025 ES payments for clients to whom the new law applies?  Only two months left to do that and get the word out.  I would start on that, now.  

If it weren't for the phaseout rules, this would be the work of a 10-year-old.  Plug in the disallowed SALT as an itemized deduction somewhere else on Schedule A, and plug in Social Security, tips and overtime (up to the limits) as an adjustment to income.  Many clients will fall into the categories of either "obviously qualify" or "obviously don't qualify" based on income.  Are you going to contact all of them with a W-2 and ask them how much overtime they expect to earn this year?  When it's only July?  

I haven't waded through the new rules on withholding for tips and overtime, but I sense that those amounts will change depending on how and when employers implement them.

I vote for Intuit putting all of its resources into getting the 2025 program right, which will help 100% of users, rather than putting some of its resources into rewriting one feature of the 2024 program, which benefits maybe 5% of users.  

[IRonMaN]

In terms of odds, I think you would be better off going down to the racetrack and betting on the horse with the name Two-Legged Trigger.

[Just-Lisa-Now-]

Theyve got a LOT of programming to do, the planner will be at the bottom of the list.  I wouldnt even hold my breath for the 2026 planner to be complete and ready until later in the tax season next year..

[Skylane]

A few simple steps to keep in mind….

1. IRS has to read the act and incorporate it in the tax code. 
2. IRS has to update its forms, instructions, and rates.

3. IRS has to share with software providers.  
4. Software providers have to figure out how to incorporate all the changes, forms, and instructions in their platform’s 

IMO, early filers shouldn’t hold their breath… lots of extensions…. This may be a good year to retire.

[Taxprohere]

This may be a good year to retire.....

or really increase my fees for 2025 tax prep, clients will need to appreciate my expertise and time to be on top of all this.  One big beautiful surcharge fee!

[jesusbowls]

I hear you, but I'd rather have both.  I use the "Tax Planner" feature extensively, especially toward the end of the year for Roth conversion opportunities, and it would be nice to at least have the new SALT cap and additional over age 65 deduction built into the 2025 projection.  This would be a very minor project for ProSeries.

[co]

I appreciate the thought out practical replies.

It appears that my expected Return on Investment of $7k software is unreasonable. My best to all as you slog through the 900+page Bill.

[BobKamman]

I just emailed a client, "Sometimes I wonder what sin I committed, that God sent me clients with stockbrokers who are clueless about Roth IRA's.  It happens a lot."  

But I try to keep an open mind.  Can you provide one example of when it was beneficial for a client to convert to a Roth?  I can provide several examples of how IRA distributions are nontaxable because clients spend them on assisted living that qualifies as a medical deduction.  

[Strongsilence-CPA]

"Can you provide one example of when it was beneficial for a client to convert to a Roth?"

To do this, wouldn't you need to calculate tax savings and tax costs and indirect financial costs (from the Roth conversion tax) and savings related to differing uses of tax savings over a very long period of time?  I'm not being sarcastic or facetious.

[jesusbowls]

I face many situations where clients can convert Traditional to Roth while staying within the 12% marginal federal tax bracket.  And in my primary state (NY), the first $20K of taxable IRA distributions per person are exempt from tax (assuming no private pensions are being collected).  These situations typically arise when clients are retired but not yet collecting social security.  To me, a 12% marginal tax cost on a conversion is an attractive proposition.  It reduces future RMDs, and is much preferable for heirs who typically end up inheriting these accounts during their prime income-earning years.

[co]

I concur AND have implemented several such conversions approximating this scenario.

[BobKamman]

This legislation is certainly going to be a Money Tree for some tax planners and preparers.

[Jim-from-Ohio]

Car loan interest deduction for 2025:  Have to put down the VIN on the return.

[Accountant-Man]

When was the Act signed? July 3, and now it's a week later that you post and you expect this to be acted upon?

What fantasy world do you live in?