Welcome to the TaxPlanIQ Insider, your monthly source for the latest tax planning innovation and insights.
We have a lot for you in this month's issue! Our teams have been hard at work in February, building several new features and functionality for the TaxPlanIQ software. Additionally, we have implemented new training and resources to help you be even more successful!
If you have not attended one of our weekly Tax Labs or had a refresher on all the software can do for you, now is the time! We are getting a lot of feedback on how helpful TaxPlanIQ has been to CPAs and accountants during tax season to plan and have more meaningful engagement with clients. Who doesn't want to save on taxes? And right now is the best time of the year to set clients up for more savings.
You will also find a lot of resources for you below including a new section in the newsletter powered by MWM News with Lorilyn Wilson, CPA.
🗓️ Plus, don't miss our exclusive Power Hourtailored for tax accounting professionals—reserve your spot today by subscribing to TaxPlanIQ!
Enhancements
In February, the TaxPlanIQ team released a number of updates and enhancements for you. Here are some of the most impactful ones!
A new entity and retirement calculator integrated into the updated tax strategy format.
Improved jAIne's training across a number of areas, especially for 2023 1040 changes. Just ask her about it!.
Automated IRS updates into the JAIne and the software for pertinent tax changes and strategies.
Conducted comprehensive testing on the 2023 1040 Form for accuracy and compliance when uploading
Implemented a user-friendly Q&A flow within jAIne where JAIne now prompts the user for relevant information
What's to come? In March and April, we are working very hard to fully release all aspects of our RAP (Read, Analyze, Propose) functionally. Imagine Tax Planning being as simple as uploading the 1040 (Read) and the system taking it from there, automatically selecting the best tax strategies to maximize an individuals tax savings (Analyze) and then creating the tax plan with those strategies (Propose) all done in just a few minutes with a couple clicks! It's almost here. Additionally, you will begin to see the first version of our Tax Projection module in the software as well. Our goal is for TaxPlanIQ to automate almost every aspect of creating and implementing a tax plan in the next few months!
News You Can Use
Powered by MWM
Check out this helpful insight from Lorilyn Wislon, CPA at MWM
Tax Refunds Looking Slim
According to the IRS, tax refunds are much less this year than in prior years (about 29% smaller). I see people erroneously attributing this to “changing tax laws” when in reality, the tax laws haven’t changed substantially since 2018. So why are the refunds smaller?
More often than not - it’s from people incorrectly filling out their W-4. So their overall tax liability hasn’t changed, but what they’ve withheld throughout the year is less than what they did in previous years. Then when it’s time to file their return, even through their tax liability is the same, their refund is less.
Although I’d personally rather owe a little than get money back, some people like to use their tax refund as a type of forced-savings account, which is totally fine (just know it is technically an interest-free loan to the government). The IRS does provide a tax withholding estimatorif you’d like to check during the year with exactly where you are at with your withholdings verse your estimated tax. Also don’t forget about state taxes as well.
For my W-2 withholding, I set a flat amount at the beginning of the year to take from paycheck based on what I think I will make for the year. I’m an S-corp, so some of my income will be via a wage, and the other portion will come to me as pass-through business income. I withhold a flat amount based on an income that includes both the W-2 income and the business income. Then, periodically throughout the year, I check and see if I’m over or under withholding and adjust my withholdings accordingly. The worst surprise is a tax surprise, so this helps me avoid that.
If you are interested in receiving MWM's weekly newsletter with helpful and actionable articles to improve your impact as a TaxPlanIQ user, you get 30% off! Click here for to take advantage!
Family Ties & Tax Lies: Unraveling the Truth Behind Family Payroll Strategies: A Must-Read Case Study!
This case study shows the risks of paying family through your business without expert tax advice.
What happened?
A bookkeeper advised clients to pay their children for business tasks, leading to tax complications for one client after using QB payroll for the transactions.
What could they have done to avoid the issues?
First, they overlooked the need for professional tax guidance. And because of this, they misunderstood how family payments affect taxes and deductions.
The improper use of payroll led to tax authority alerts. When they tried to adjust wages post W-2 issuance, it created more issues and showed the need for proactive planning.
Second, outside of consulting a professional, tools like TaxPlanIQ could have shown them how to implement this strategy correctly and maximize its impact. Or if the strategy makes sense for the client in that situation.
We're thrilled to announce a game-changing partnership with Business Benefits Consultants, a leader in financial advisory services. This collaboration brings together BBC's unparalleled expertise and TaxPlanIQ's innovative tax planning solutions, offering our community exclusive insights, special discounts, and enhanced support. Expect a suite of resources designed to streamline your financial strategies and elevate your business's potential.
Celebrating Black History Month
At TaxPlanIQ, we're committed to diversity and inclusion, celebrating the richness of every individual's contribution. We extend our deepest appreciation and warm wishes to our valued clients and the broader community. This month is a testament to the resilience, contributions, and rich cultural heritage of Black Americans, and we're grateful to celebrate alongside you. Your continued partnership and trust inspire us daily, and we're committed to supporting and uplifting the voices and achievements of the Black community not just this month, but all year round.Thank you for being an essential part of our journey!
Attention accountants: When prepping returns, note clients with significant Schedule C or new rental properties/business endeavors, indicating a need for tax planning. Post-season, it's crucial to upsell these services. Utilizing an eCal for scheduling these sessions enhances efficiency and client engagement. #TaxTipsForAccountants #StrategicTaxPlanning #EfficiencyTools
Jackie Meyer, CPA, CCA, Doctoral Candidate, Founder of TaxPlanIQ, 1207 South White Chapel Blvd, Suite 200, Southlake, TX 76092, United States, 888-272-1258
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