[NS Accountant]

Imagine a married couple where one spouse works for an employer and the other is self employed
If the self-employed spouse can claim enough tax credits to reduce taxes payable (before installments) to less than $2,000, then installments may not be required in the upcoming year (depending on taxes payable in the prior year).
The self-employed spouse should like to owe just a shade under $2,000 each year so that he or she would never have to make installment payments.
Think time value of money - it is "best" to delay paying tax until the 11th hour.

The self-employed spouse might achieve the "slightly-less-than-$2,000-taxes-payable" goal by claiming various discretionary tax credits such as tuition/education from a child, caregiver amounts, disability from children, ...

We've noticed that Profile tends to allocate such tax credits to the higher-income spouse.
We've had to override Profile to get the allocations where our clients would prefer them.

It would be less work for us if Profile had an option to use discretionary credits to (try to) reduce a self-employed spouse's taxes payable before installments to just a shade less than $2,000.

[Joe]

NS Accountant, on Apr 22 2007, 09:38 PM, said:

to (try to) reduce a self-employed spouse's taxes payable before installments to just a shade less than $2,000.

God only knows why you would want to do that - I'm quite happy using $3,000 ... :P

IMHO I already find it a bit irritating that Profile already has too many of these "decisions" and "suggestions" built in - not only driving up the price of the s/w, but also forcing the preparer to waste time checking...
Preparers should know where they want to put things, or they shouldnt be Preparers... - Just IMHO ...

Some peoples goal might be to aim for just under $2,000 - other peoples goal might be to be able to advise the client that the number is $3,000 - and others might not have any such goals...

But other than that, an interesting thought ;)
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[Easter1]

Where is Mr Humility?

This sounds like the crutch vs tool issue once again.

Joe is dead on, let's software that does the job and forget about the extras, is that not what the grey matter better the ears is for?

Yes, I may sound harsh, but this automation of the software is beginning to degrade the experience over the past 10 years!

Easter

[Dink Meeker]

Perhaps a more detailed definition of "discretionary" credits would be in order. If your referring to such things as medical expenses or donations, no over-rides are necessary to move these around. Medical is a nice yes / no box and donations a right click transfer to spouse option. If your referring to tuition transfers, we're only talking a one field over-ride to zero procedure.... not really adding alot to my workload.

I also like to look at each family's overall tax liability, not just the individual. I don't think I can expect the software to do this consistently for me(to many variables). I like to set up the monitors along the bottom of the screen to give me instant access to certain information. Currently, I run 3 rows of monitors and I find them to be a great asset.




Edit: Hey the edit buttons back...... :D

[RL Tax Joe]

Dink Meeker, on Apr 23 2007, 08:53 AM, said:

Edit: Hey the edit buttons back...... :D

Its now called the "Bert Button" since it is most likely he who is responsible for its return.

[unknown]

you are giving credit where none is due....

[James1]

Dink Meeker, on Apr 23 2007, 07:53 AM, said:

Edit: Hey the edit buttons back...... :D

I think that the edit button will disapear after abount 5 minutes

James