Creating New Plans

Facts

Enter the following information for a sample plan:

Program Considerations

When you create a new plan, the program opens the Plan Information dialog. This is where you define the type of plan you want to create and enter client information for the taxpayer, spouse, and dependents. This information can also be modified later. The four types of plans available are:

1. Case/Year Analysis -- Provides a projection over a user-specified number of years. By creating different cases, or scenarios, within a given year, you can see which course of action results in the lowest tax liability for the taxpayer in any given year. You can display this plan by year or case, as follows:
   • Year - each year contains a user-specified number of cases. The program displays all your cases under the corresponding year.
   • Case - each case contains a user-specified number of years. The program displays all years within their respective case.

2. MFS/MFJ Comparison -- Allows you to determine the tax difference between the taxpayer and spouse filing separately and jointly. This plan displays three different cases for every year in the plan, as follows:
• Taxpayer case - displays amounts related only to the taxpayer.
• Spouse case - displays amounts related only to the spouse.

Note: The Taxpayer case and Spouse case each show the tax calculation as if the taxpayer and spouse are filing separately.



• Joint case - displays the combined Taxpayer and Spouse amounts, and calculates the tax as if the couple were filing jointly.
3. Difference Analysis -- Calculates the difference between two case scenarios. This plan displays two cases and a difference column for every year in the plan, as follows:
• Case 1 and Case 2 - contain user-defined amounts and the corresponding tax calculation for each case.
• Difference column - displays the difference between Case 1 and Case 2.

Note: You cannot modify fields in the Difference column because it is automatically calculated based on Case 1 and Case 2.

4. Adjustment Analysis -- Calculates the effects that certain adjustments have on the tax liability for a case. This plan displays one case along with adjustment and total columns for every year in the plan, as follows:
• Case 1 - displays the user-specified data, and the tax calculation that results from this data.
• Adjustment column - allows you to enter amounts that are added to, or subtracted from, corresponding amounts in Case 1. In the Adjustment case, no tax calculation takes place.
• Total column - displays the corresponding amounts resulting from the sum of Case 1 and the Adjustment case.

Note: You cannot modify the Total column because it is automatically calculated based on Case 1 and the Adjustment column.

Setting the options in the Plan Information box is a process that will occur for virtually every plan you work on, whether it is exported from the Tax Program, imported from the Tax Program, or a plan you create from scratch.

How?

To create a new plan:

1. Start the 2005 Tax Planner program.
2. Select Create a new plan.
   
3. Click OK.

   Note: If the Don't show this dialog box again box was checked, this will not appear when you open the program. If so, click New on the File menu.

   
4. Enter the information from the Plan Options and Taxpayer and Spouse tables above.
   
5. Click OK.
6. Click Close on the File menu.
   
7. When prompted to save, click Yes.
   
8. Save as A Sample by clicking Save.
   

Tips & Shortcuts

• You can click the New icon in the toolbar or press [Ctrl]+[N] to open a new plan.
  
• You can press [Ctrl]+[S] to save a plan at any time or click the Save icon in the toolbar.
• Since you can only have one plan open at a time, the program automatically closes the plan you are working on when you open another.
• You can open multiple plans by opening multiple instances of the program.

Review

You should have been able to create and save a new plan in the Tax Planner.

Troubleshooting

Problem: I saved the plan, but I don't know where I saved it.

Solution: By default, the Tax Planner saves plan files in the ?\Lacerte\05TXPLN\Plans directory
(where ? represents the drive letter).

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