scottfo/tax-professional-skill

Overview

This skill is a pocket CPA for US taxpayers that combines deduction optimization, expense tracking, audit-risk assessment, and year-round tax planning. It supports all common employment types (W-2, 1099, S‑Corp, and mixed) and guides users through multi-state filing, estimated payments, and life-event tax impacts. The goal is to maximize legal deductions, minimize surprise tax bills, and keep documentation audit-ready.

How this skill works

When you report an expense or life event, the skill classifies the item, evaluates deductibility, and logs it with recommended IRS schedules and confidence levels. It maintains a year-by-year expense ledger, estimates quarterly tax obligations, assesses audit risk, and issues proactive calendar nudges for deadlines and planning opportunities. Advice is tailored to the user’s employment type, filing status, and state situation; unclear contexts prompt clarification questions.

When to use it

• After any purchase or payment you think might be deductible (equipment, subscriptions, travel).
• When setting or adjusting quarterly estimated tax payments.
• Before year-end for timing strategies like Section 179, loss harvesting, or bunching donations.
• When experiencing life events (home purchase, marriage, new child, move, starting an S‑Corp).
• When preparing for an audit or compiling documentation for a tax pro.

Best practices

• Confirm amount, date, business purpose, and receipts when logging every expense.
• Categorize expenses to the correct IRS form/schedule and note business-use percentage.
• Keep receipts and contemporaneous notes; mark audit-risk level for large or uncommon deductions.
• Use the simplified home-office method for small setups or actual-method with careful allocation for larger deductions.
• Review withholding and estimated payments quarterly to avoid penalties and optimize cash flow.

Example use cases

• Log a $450 monitor purchase: categorize as equipment, mark Schedule C or Section 179 eligibility, and flag receipt needed.
• Calculate Q3 estimated tax payment based on YTD income, deductions, and safe-harbor rules.
• Evaluate whether converting a sole proprietorship to an S‑Corp makes sense given salary vs. distribution tax savings.
• Run a year-end deduction summary to decide whether to bunch charitable gifts or accelerate equipment purchases.
• Assess multi-state filing triggers after a move or when working remote across multiple states.