Applying the One Big Beautiful Bill changes to estimated taxes in ProSeries 2024

This article will help you:

• Apply these provisions to ProSeries 2024 to calculate next year's estimated tax payments.
• Apply the 50% election for special depreciation allowance for assets placed in service after 9/27/2017

On July 4, One Big Beautiful Bill was signed into law, bringing significant changes to the tax code and beyond. For more information about the changes included in this bill see here.

To calculate the estimated taxes based on the new provisions:

An update is available on 8/20/2025 for ProSeries 2024 to recalculate the estimated taxes based on these provisions when you use the Tax Planner worksheets.

1. Make sure you are on the minimum version for the changes:
   • From the Help menu, select About ProSeries.
   • Select the Version tab.
   • The S2024US1040PRO version should be at least 2024.4082.0.0
   • Select Close.
2. Press F6 to bring up Open Forms.
3. Type ESW and press OK to open the Estimated Tax Worksheet.
4. In Part I, 2025 Estimated Tax Amount Options check one of the following boxes:
   • b. 100% of tax on 2025 estimated taxable income.
   • c. 90% of tax on 2025 estimated taxable income.
   • d. 60-2/3% of tax on 2025 estimated taxable income (farmers and fishers)
5. If estimated tax payments have already been made:
   • Scroll down to Part IV Estimated Tax Payment Summary.
   • Enter any amounts on line 1 that have already been paid.
6. At the bottom of Part IV Estimated Tax Payment Summary select the QuickZoom on line E Use Tax Planner for preparing 2025 ES Vouchers.
7. Enter a description and select Create.
8. Under Plan 1, or your next available column if you have other plans set up, for Tax Year choose 2025.
9. Review the summary. Many changes will be automatic, such as:
   • Changes to Standard Deduction.
   • Changes to SALT limitations
   • Child Tax Credit changes.
   • Senior Deduction.
10. At the bottom of the Summary check the box for Check to prepare ES Vouchers based on this plan.
11. Enter any other adjustments, as needed, to the tax planner worksheets to adjust the vouchers.

If you have already e-filed the tax year 2024 return with Estimated Tax Payments set up for electronic funds withdrawal, there is not a way through ProSeries to change the payment amounts to the new calculation. See Pay taxes by electronic funds withdrawal for information on canceling the payment schedule and setting up a new payment option with the IRS.

To elect phasedown special depreciation allowance in tax year 2024 for fiscal year business returns:

1. Press F6 to bring up Open Forms.
2. Type IRC to highlight IRC Elections and press OK to open the Election Summary.
3. Select the QuickZoom on line 1 to open the IRC 168(k): Special Depreciation Allowance Election.
4. Scroll down to the Election under IRC section 168(k)(10) Smart Worksheet.
5. Check the box Check this box if you are electing the phasedown of 40%/60% bonus depreciation in lieu of 100% bonus depreciation.
6. Open the Asset Entry Worksheet.
7. Under Economic Stimulus - Qualified Property review the new checkboxes to pick the special depreciation allowance that applies to this asset for this client.