Do you charge for estimated payment calculations?

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?

I do charge extra for it but include it as a separate line item of my fee for preparing their 2020 tax returns. If it is done at a different time, then a separate invoice is sent. I will prepare projected tax returns for the next year, watermark them as such, and upload to the client's portal so they can review them.

As new events occur, such as capital gains not anticipated at the time of the projections, they'll ask that I update the projections. I find a number of clients like to know what what their tax picture will look like during the year, as they march along the timeline, and are willing to pay for that.

It also allows for more of a dialogue during the year to unearth potential issues, or opportunities, before they occur and manage them. Those clients who want this service tend to be the better clients as they become an integral part of the tax planning process and understand better than most other clients how things fit together for tax purposes.

Yes I do charge and the fee is based on whether I perform tax planning to prepare a more concise estimate. One client just wanted a specific amount, so I didn't charge extra, another client, I tweaked it because the calculations included a very large one time savings bonds interest income, but I didn't charge extra. If the client makes o habit of calling during the year for changes, I build that into the tax prep fee. I find that too many clients believe that it's included and will argue if they are charged extra.

I do not charge for estimated tax payment calculation of existing clients. As a matter of fact I encourage my large balance due clients to pay estimated taxes. I will even print out the Fed and State payment vouchers if they don't trust Direct Pay or the state version of it.

I can recall only a few instances where I had to charge by the hour for clients who wanted me to recalculate the entire tax return with hypothetical estimated tax amounts and almost all of them were multi-state returns.

I internalize safe harbor estimated payments in the return fee for those that need to make them and provide vouchers. If the client provides forward looking summary data, I include that in the calculation, otherwise they're based on the PY numbers.

If a client needs to update or run a projection/provision, I charge for that.

Same as most here.
I check the box to print vouchers based on prior year, rounded up to the nearest $100, and up to the nearest $50 for NY returns, as part of the 2020 tax prep fee.
If they have unusual situations that require additional time, I certainly bill for that.

I had one this year that had the sale of a rental building, combined with the installment sale of shares of a company that were sold upon retirement. That one was actually pretty fun to work up, along with all the brokerage accounts, etc.
If anyone told me that is what I would have found as "fun" in my forties, I probably wouldn't have believed them.

I don’t charge explicitly for it but will bundle estimated tax calculations with the monthly bookkeeping fee.

Here is a taxpayer that should pay estimated taxes but chooses not to do so. He gets around $20,000 in bank interest. He pays a balance due with penalty and still will not do estimated taxes. Fellow is 69 years old and stubborn as a mule! He buys lunch specials and saves half for dinner!