As we get closer to the end of the year, I’m thinking about things like tax gain harvesting and deciding between Roth and Traditional contributions.
Is there any software out there that lets you run tax scenarios for next year? I’ve tried using last year’s software, but some numbers like deductions and limits change, so I don’t think it’s fully accurate.
For now, I’m using a spreadsheet, but it takes a lot of time to update each year. Any better solutions?
There are some paid options. My firm uses BNA Income Tax Planner. It’s solid but not very user-friendly, might be more than you need.
Last year’s software should work pretty well.
Oak said:
Last year’s software should work pretty well.
I thought the same, but the original poster seems to have their doubts.
Hey, original poster! What worries you about using 2023 software? Something specific?
For simpler situations, Excel is as good as anything else. I also use Dinky Town—it’s a funny name but a solid, free tax calculator.
Kelley said:
For simpler situations, Excel is as good as anything else. I also use Dinky Town—it’s a funny name but a solid, free tax calculator.
Dinky Town and the AARP calculator look nearly identical. Do you know if one is just copying the other?
My case might be too complicated for them though. I prefer something that shows actual tax forms. I remember seeing someone share their tax spreadsheets for others a while ago. Are those still available? Mine aren’t the neatest.
Pax said:
I use this one: https://www.mortgagecalculator.org/calcs/1040-calculator.php
Looks similar to Dinky Town and AARP’s versions. I’ll compare it with my spreadsheet and see if it’s close enough.
Do any of these save your info so you can adjust it later?
Some online tax software claims to have 2024 previews, but I’m not too sure since tax brackets haven’t all been announced. You could still give them a try.
I’ve tried a few free tax estimators like Intuit TaxCaster, which includes my different income types. There’s also AARP’s estimator. TaxCaster right now only goes up to 2023 taxes, though, and it sometimes overshoots tax estimates because of slight bracket changes.
I already know my investment income and distributions for the year, so I can make a rough estimate. I don’t have any losses to offset, so no tax harvesting for me. But I might adjust my January payment if needed.
Your account should list your long-term and short-term gains, and any dividends or interest earned so far.
I don’t know of any free options that meet your needs. This could be a good reason to consider using a tax preparer.
Bailey said:
I don’t know of any free options that meet your needs. This could be a good reason to consider using a tax preparer.
Is there anything tax preparers commonly use that might be affordable if I just need one return done?
@Lex
You could try using Intuit’s online planning tool—it’s free until you file. Not the easiest to use, but you can probably find YouTube guides for help.
TurboTax for this tax year is already out. Sometimes I load up last year’s file and add in rough numbers. Then I delete it and start fresh for the real deal next year.
Maybe you’re overcomplicating your spreadsheet? I keep mine simple: 12 rows for each month, a few columns for income, interest, 529, HSA, and retirement contributions.
I add up income and invested earnings, subtract estimated taxes, and see if I’m staying within limits. Each year, I copy this over, make tweaks, and then compare to TurboTax. Started this in 2016 and it’s still going strong!
I just downloaded the 2024 version of ProSeries, but it’s pricey—over $3K. Probably not what you’re looking for, but a tax pro could plug in estimates for you, which might be affordable.
You can make 2024 IRA contributions as late as April 15, 2025, so you could hold off until you have the final numbers.