Tax Strategies & Credits

Tax Pros Get a Head-Start on Tax Planning With These Free Worksheets

Tax Pros Get a Head-Start on Tax Planning With These Free Worksheets

With the General Accounting Office estimating that 21% of taxpayers will not have enough withholding to pay their federal taxes (up from 18% in 2017) and with the almost daily notices from the IRS warning taxpayers that their federal income tax may be under-withheld, there is reason for concern. 

The complexities of tax reform have made the Form W-4 and the IRS' online withholding calculator almost worthless for most taxpayers. These issues, coupled with delays in publishing the 2018 W-4 and Pub 15, all add a definite level of doubt.

With all the political hype about tax reform, taxpayers will be expecting larger refunds or less tax due on their 2018 returns. But if the withholding is off, that may not be the reality when April 15 rolls around, and they may be in for unpleasant surprises, especially if they count on their refund to pay property taxes, insurance, tuition, etc. Taxpayers are generally expecting withholding to be less because of the tax cuts and are paying no attention to whether the reduced withholding is reduced too much.

This is an opportunity for tax professionals to contact their clients and offer a withholding check-up. You can make some additional revenue and make sure your client is happy at tax time. 

TaxBuzz has developed two worksheets to help you adjust your client's withholding and/or estimates:

  • 2018 Tax Projection Worksheet (uses 2017 data as a starting point), and
  • W-4 Worksheet that is designed to intervene mid-year and uses the projected tax from the 2018 Tax Projection Worksheet.

These services can generally be provided via phone based upon last year's tax return and current pay stubs, taxable income and withholding year to date.

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Lee Reams, BSME, EA

Lee Reams, BSME, EA

Editor-in-Chief

Besides his role at CountingWorks as an educator and speaker to thousands of accountants nationwide, Lee manages a technical research service for a large group of tax accountants which sharpens his technical skills. Lee served on the Board of Blackline Systems, is a former Board of Director for the California Tax Education Council, is a Past President of the San Fernando Valley Chapter of Enrolled Agents, Member and Past Director for the California Society of Enrolled Agents.

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