The CPA firms for which I worked in the past would typically calculate the estimated payments for clients for the next tax year as part of tax preparation for the current year. However, it always seemed to me like I was preparing two tax returns (the current year and the next year) for the price of one, thereby doubling the work for no additional compensation.
In my own firm, my current policy (only in situations in which income/withholdings are expected to change in the next tax year) is that we can either:
1. Use the 100%/110% safe harbor calculations based on the current tax year; or
2. Provide tax projections for the next year (including the amounts to be withheld from wages, self-employment income, etc. -- fairly precise calculations) which include the estimated payments for 2-3 hours of billable time ($650.00-$975.00 in total).
Client so far have been receptive to the choice of the above-mentioned options.
So I'm curious as to how you guys/gals handle the calculation of estimated income tax payments for the next tax year. Is it included as part of tax preparation for the current year? Do you charge extra for it? If so, how much?