Method, system, and computer program for predicting tax liabilities and benefits

• US 8,706,580 B2
• Filed: 04/26/2010
• Issued: 04/22/2014
• Est. Priority Date: 04/26/2010
• Status: Active Grant

• Current Assignee: HRB Tax Group Incorporated (H&R Block, Inc.)
• Original Assignee: HRB Tax Group Incorporated (H&R Block, Inc.)
• Inventors: Houseworth, Jason, Passer, Samuel Brent, Wright, Howard C. III
• Primary Examiner(s): Hammond, III, Thomas M
• Application Number:
  US12/767,637
• Publication Number:
  US 20110264569A1
• Time in Patent Office: 1,457 Days
• Field of Search: 705/36.T, 705 30- 45
• US Class Current: 705/31
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

Abstract

A method, a system, and a computer program for predicting an impact of a tax event on a user'"'"'s tax liabilities at any intermediate time during a current tax year based on a comparison of known and predicted user information related to the user and the user'"'"'s taxes, tax event information, and a tax deduction database of tax deductions, credits, and eligibility rules. The computer program and method for predicting the impact of the tax event comprise acquiring information about the user from a user profile, acquiring information about the tax event, comparing the user information and the tax event information with requirements for tax deductions and credits offered by a taxing authority, and identifying deductions or credits having requirements related to the user information and the tax event information. Furthermore, embodiments may also comprise determining a probability that the user will qualify for the deduction or credit based on both the known and predicted user information, the tax event information, and the requirements for tax deductions and credits for the current year.

Claims

1. A non-transitory computer readable storage medium with a computer program stored thereon for predicting an impact of a tax event on a user'"'"'s tax liability, wherein the computer program instructs a processor to perform the following steps:

acquire known user information related to the user and the user'"'"'s taxes, wherein the known user information includes at least some information for at least one prior tax year and for a current tax year to date;

predict at least some user information related to the user and the user'"'"'s taxes for a remainder of the current tax year based at least partially on the known user information;

acquire tax event information about the tax event,

wherein the tax event is an action or an inaction that can be undertaken by the user, or by a third party that will have an effect on the user, and that will have an impact on the user'"'"'s tax liability;

compare the known user information, the predicted user information, and the tax event information with requirements for at least one of tax deductions and tax credits offered by a taxing authority;

identify deductions or credits having requirements related to the known user information, the predicted user information, and the tax event information;

predict the impact of the tax event on the user'"'"'s tax liability based on the known user information, the predicted user information, the tax event information, and the requirements for at least one of tax deductions and tax credits for the current tax year;

deteimine a probability of the predicted impact of the tax event, wherein the probability is based on the known user information, the predicted user information, the tax event information, and the requirements for at least one of tax deductions and tax credits for the current tax year; and

use the determined probability to provide an indication of the user'"'"'s eligibility for the tax deduction or credit.

2. The non-transitory computer readable storage medium of claim 1, wherein the tax event is a purchase of a good or service, and the tax event information is purchase information associated with the purchase.

3. The non-transitory computer readable storage medium of claim 2, wherein the purchase information further comprises at least one of an amount of the purchase and a category of the purchase.

4. The non-transitory computer readable storage medium of claim 3, wherein the computer program further instructs the processor to filter the user'"'"'s financial records from the user'"'"'s financial institution or financial management software to locate purchase information and to automatically sort various tax purchases into one or more pre-defined categories.

5. The non-transitory computer readable storage medium of claim 4, wherein the computer program further instructs the processor to automatically calculate the purchase information based on at least one of a UPC of the purchase, a digital receipt, and an image of a physical receipt.

6. The non-transitory computer readable storage medium of claim 2, wherein the computer program further instructs the processor to save at least one of credits and deductions associated with the purchase and output a summary including:

a total of at least one of deductions and credits identified thus far during a current tax year and a total amount by which these deductions and credits are predicted to reduce the user'"'"'s tax bill based on a predicted income and predicted tax bracket of the user.

7. The non-transitory computer readable storage medium of claim 1, wherein the tax event is an action taken by or affecting the user.

8. The non-transitory computer readable storage medium of claim 1, wherein the computer program further instructs the processor to calculate an estimated amount by which the credit or deduction will reduce the user'"'"'s tax bill based on the known user information, the predicted user information, the tax event information, and the requirements for the deduction or credit.

9. The non-transitory computer readable storage medium of claim 1, wherein the predicted user information includes at least one of predicted income and predicted tax bracket.

10. The non-transitory computer readable storage medium of claim 1, wherein the known user information further comprises at least one of the user'"'"'s occupation, the user'"'"'s past tax returns, the user'"'"'s city, county, state, or country of residence, the user'"'"'s marital status, and information regarding the user'"'"'s spouse.

17. The non-transitory computer readable storage medium of claim 1, wherein said indication of the user'"'"'s eligibility for the tax deduction or credit is provided as a percentage probability.

18. The non-transitory computer readable storage medium of claim 1, wherein said indication of the user'"'"'s eligibility for the tax deduction or credit is provided as being above or below a threshold value.

11. A method for predicting an impact of a tax event on a user'"'"'s tax liability, the method comprising the steps of:

acquiring, via a computer, known user information related to the user and the user'"'"'s taxes, wherein the known user information includes at least some information for at least one prior tax year and for a current tax year to date;

predicting, via computer, at least some user information related to the user and the user'"'"'s taxes for a remainder of the current tax year based at least partially on the known user information;

acquiring, via a computer, tax event information about the tax event,

wherein the tax event is an action or an inaction that can be undertaken or not undertaken by the user, or by a third party affecting the user, and that will have an impact on the user'"'"'s tax liability;

comparing, via a computer, the known user information, the predicted user information, and the tax event information with requirements for at least one of tax deductions and tax credits offered by a taxing authority;

identifying deductions or credits having requirements related to the known user information, the predicted user information, and the tax event information;

predicting, via a computer, the impact of the tax event on the user'"'"'s tax liability based on the known user information, the predicted user information, the tax event information, and the requirements for at least one of tax deductions and tax credits for the current tax year;

determine, via a computer, a probability of the predicted impact of the tax event, wherein the probability is based on the known user information, the predicted user information, the tax event information, and the requirements for at least one of tax deductions and tax credits for the current tax year; and

use the determined probability to provide an indication of the user'"'"'s eligibility for the tax deduction or credit.

12. The method of claim 11, wherein the tax event is at least one of:

a purchase of a good or service, and the tax event information is purchase information associated with the purchase, and

an action taken by or affecting the user.

13. The method of claim 12,

wherein the purchase information further comprises at least one of an amount of the purchase and a category of the purchase,

further comprising the step of filtering, via a computer, the user'"'"'s financial records from the user'"'"'s financial institution or financial management software to locate purchase information and to automatically sort various tax purchases into one or more pre-defined categories.

14. The method of claim 12, further comprising the step of saving, via a computer, at least one of credits and deductions associated with the purchase and outputting a summary including:

a total of at least one of deductions and credits identified thus far during a current tax year and a total amount by which these deductions and credits are predicted to reduce the user'"'"'s tax bill based on a predicted income and predicted tax bracket of the user.

15. The method of claim 11, further comprising the step of calculating, via a computer, an estimated amount by which the credit or deduction will reduce the user'"'"'s tax bill based on the known user information, the predicted user information, the tax event information, and the requirements for the deduction or credit.

16. The method of claim 11,

wherein the predicted user information includes at least one of predicted income and predicted tax bracket, and

wherein the known user information further comprises at least one of the user'"'"'s occupation, the user'"'"'s past tax returns, the user'"'"'s city, county, state, or country of residence, the user'"'"'s marital status, and information regarding the user'"'"'s spouse.

19. The method of claim 11, wherein said indication of the user'"'"'s eligibility for the tax deduction or credit is provided as a percentage probability.

20. The method of claim 11, wherein said indication of the user'"'"'s eligibility for the tax deduction or credit is provided as being above or below a threshold value.