Running multiple scenarios/versions of a 1040 return

I've used ProSystemFX forever and love the software and service but hate the price. One of the ways I use FX is to run multiple scenarios of a client's return particularly when I am projecting what the next year will look like.

For example, in the Smith's 2019 tax return the data is in a version #1 file which will be e-filed. I can open it up, add long-term capital gains and save it as version #2 file to see the impact of the LTCG. I can then add a Schedule C and save it as version #3. This allows me the ability to easily do projections for future years and different scenarios. I think FX allows up to 6 versions of a current-year client file.

When I was inquiring with other software vendor reps of such as Drake and UT they weren't sure that was possible. Can anyone speak to whether those two software can run multiples versions of a client return for planning purposes? Obviously, one 1 version will be e-filed and the others used for planning purposes.

Drake has a tax planning feature. It works for current and next tax year.

When I was inquiring with other software vendor reps of such as Drake and UT they weren't sure that was possible.

I am very very surprised that the sales rep of these companies would not know that. As Cathy posted, Drake has a Tax Planner that you can use for projections for the current tax year and the following tax year. The only downside is that you can't make a projection return into an active return for filing purpose without entering all the changes in the active return. May be there is a way but I have to figured it out.

In Drake. You can archive multiple returns and make changes. Then just select the archive you want to efile.

Lacerte allows you to make a "copy" of a return so that you may run projections. If you are using the Pay-Per-Return billing method, then you will need to change the SSN(s) to all 9's to avoid being charged.

UT has a tax planner you can do that with, but it’s onerous and slow. It’s great if you to do $500 worth of tax planning.

For quick scenarios I’ll “save as” and change the client code (Smith to Smith2020). It works well unless there assets. Sometimes it still works, sometimes it causes serious problems.

Tax planning for the right taxpayer can be a very good source of revenue during off season. I already got one client who hired me to do projections this summer for 2020 and 2021 tax scenarios. He is thinking of retiring, has rental properties, company stock and a large investment portfolio. He can "technically" live with his rental income and investment income. But he want to know the tax implications if he cashes some other investments, moves out of MA to either FL or AZ.

BNA Tax Planner software does a wonderful job with projections and multiple scenarios.

Anyone know of an inexpensive easy to use W-4 calculator that works with 2020 payroll. This is for a client.

I already have CFS.

I've had BNA Tax Planner and it does an excellent job. What I don't like is the inefficiency of having to re-enter all of the tax data when it's in the tax-preparation software already. I prefer pulling up the tax return for the current year then adding or deleting items that will change in the projected period.

Some software (Lacerte and UltraTax that I know of) has a bridge with BNA where you can transfer the data from the tax program to BNA.

I'm not sure if this helps with the W-4 calculator question, but the IRS did release a (remarkably helpful) spreadsheet that I've found helpful to get an idea of what entries on the W-4 do to withholding:

https://www.irs.gov/businesses/small-bu ... -employers

I'm not sure if this helps with the W-4 calculator question, but the IRS did release a (remarkably helpful) spreadsheet that I've found helpful to get an idea of what entries on the W-4 do to withholding:

https://www.irs.gov/businesses/small-bu ... -employers

Thanks for the response. For some reason that spreadsheet always shows a higher weekly withholding compared to CFS W4 calculator. Have you noticed that? I guess higher may be ok that they will receive a refund, but it throws cold water on tax planning.