Tallyfor TaxCalc Getting Started

Tallyfor TaxCalc - a robust, customizable, and user-friendly tool designed to simplify your tax estimation process.

Step 1: Create a Client

In the Client Screen>Click Add +. In Create New Client box>add Client Name and ID. In the IRS Form dropdown, Choose 1040 Tax Estimate, then Click Create.

Step 2: Importing Data

Instead of manually entering data, simply drag and drop a PDF of your client's 20221040 or an IRS Transcript (digital PDF* only) tax return into the designated file drop zone. Grab a coffee, and by the time you're back, you'll have an accurate current year tax projection ready.

On average, a two page PDF takes 15 seconds to process. A typical full 30 page pdf takes about 1 minute or less. 

A "digital PDF" is a PDF that came directly from your tax filing product. Most likely it is the one you saved to your computer when you completed your return or is a copy of what you transmitted to the IRS.

For links to resources about how to print from different tax product:

How to Print Tax Return from Your Tax Product to PDF

Step 3: Reviewing and Adding Details

In the Return Details card, confirm essential elements such as prior year AGI, tax, and any prior year refunds applied to estimated payments. Add any missing data like birthdays, which can affect deductions.

Step 4: State Tax and Payments

Add applicable states and allocate the percentage of income taxable to each state.

Record all tax payments made for the current year.

Step 5: Updating Income Sections

Update information across various income sections: Wages, Investment, Retirement, and Business.

Wages: Split between taxpayer and spouse, and project forward to year-end using the most recent pay stubs.

Investment: Update interest, dividends, gains, and losses. By default, prior year gains are brought forward as short-term (conservative) but allocate to long-term gains as necessary.

Retirement: Taxable portion of Social Security is caculated, and add details for IRAs, annuities, and pensions.

Business: Add details for self-employed individuals, pass-through entities, and schedules (C, E, F, etc.). Self-employment tax and qualified business income deductions are calculated automatically.

Step 6: Confirming Estimates

Tallyfor TaxCalc calculates the fourth-quarter payment, considering any underpaid taxes and penalties to date. Compare the IRS required payment (Safe Harbor) against the Tallyfor estimate to guide your clients.

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