Voyant estimates tax withholdings up front, including Social Security, Medicare, federal, and state taxes. It then applies deductions, such as the standard deduction and any eligible pre-tax contributions.
If, after applying those deductions, Voyant determines that too much tax was originally withheld, it carries the overpayment forward as a tax credit into the following year.
Because of this, turning the standard deduction on or off will affect that calculation. For most clients, we recommend leaving the standard deduction enabled since that’s what the majority of taxpayers will use.
If the goal is to prevent that tax credit from appearing in the plan, the only way to do that is to turn off the standard deduction. Just keep in mind that doing so means the plan is no longer reflecting the standard deduction most clients would actually receive, so it may not be as realistic from a tax-planning perspective.
Go to: "Taxes & Other Financial Information" from the Dashboard.
The main exception would be when you’re modeling specific tax-planning strategies, such as charitable gifting or situations where you need to illustrate a detailed itemized deduction instead of the standard deduction.