System and method for identifying tax savings opportunities for a taxpayer

• US 7,693,769 B1
• Filed: 12/24/2004
• Issued: 04/06/2010
• Est. Priority Date: 12/24/2004
• Status: Active Grant

• Current Assignee: HRB Tax Group Incorporated (H&R Block, Inc.)
• Original Assignee: HRB Tax Group Incorporated (H&R Block, Inc.)
• Inventors: Peak, Bradley K., Sullivan, Chrystine M., Tucker, Brian C., Burlison, Kathryn T., Doedtman, Margaret C., Willoughby, James
• Primary Examiner(s): Kalinowski; Alexander
• Assistant Examiner(s): Ebersman; Bruce I
• Application Number:
  US11/023,282
• Time in Patent Office: 1,929 Days
• Field of Search: 705/705, 705/36, 705/35, 705/37, 705/38, 705/39
• US Class Current: 705/36.00T
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

The present invention is a computerized tax savings tool for adjusting a taxpayer'"'"'s taxable income to identify tax savings opportunities. The tax savings tool may be implemented as a component of a proprietary tax preparation software system that is used to prepare tax returns for taxpayer clients of a tax preparation firm. The tool automates the calculations of legal steps that a taxpayer may take to reduce his or her AGI on a current or a future tax return, which in turn enables the taxpayer to take advantage of additional adjustments, deductions, exemptions, credits, etc. provided by the tax code of the taxing authority. The tax savings opportunities are presented in one or more onscreen reports that may be reviewed by a tax return preparer and taxpayer. The onscreen report identifies specific actions that the taxpayer may take to reduce his or her taxable income, and therefore, related tax liability.

Claims

1. A computerized method for identifying tax savings opportunities for a taxpayer comprising the computer implemented steps of:

(a) entering in a tax return preparation program executing on a computer current tax year tax data for said taxpayer to prepare a tax return for a current tax year using said tax return preparation program;

(b) determining an adjusted gross income for said taxpayer based on said current tax year tax data for said taxpayer entered in said tax return preparation program executing on said computer;

(c) providing said adjusted gross income value to a tax savings component in communication with said tax preparation program executing on said computer;

(d) in response to receiving said adjusted gross income at said tax savings component executing on said computer, applying income phase-out rules of a tax code to said adjusted gross income value to determine adjustments to said adjusted gross income that result in tax savings for said taxpayer for said current tax year;

(e) determining in said tax savings component executing on said computer tax savings resulting from application of said adjustments to said adjusted gross income value;

(f) repeating steps (d) and (e) until application of said income phase-out rules does not identify adjustments to said adjusted gross income value that result in tax savings for said taxpayer for said current tax year;

(g) generating for display in said tax return preparation program executing on said computer onscreen messages explaining said tax savings; and

(h) presenting said onscreen messages in said tax return preparation program executing on said computer applicable to said tax return for said current tax year without changing said current tax year tax data entered in said tax return preparation program.

2. The method of claim 1 wherein said adjustments are selected from the group consisting of deductions, exemptions, and credits.

3. The method of claim 1 wherein determining an adjusted gross income for said taxpayer comprises determining an adjusted gross income based on a federal tax code.

4. The method of claim 1 further comprising printing said onscreen messages for said taxpayer.

5. The method of claim 1 wherein determining a tax savings for said taxpayer for said current tax year by applying adjustments to said adjusted gross income comprises comparing said adjusted gross income to phase-out ranges in said tax code.