Clearing overrides is a best practice to ensure the accuracy of your tax projections. Here's a rundown on how to do that.
We also have a helpful Scenario Recipe for "Editing Overrides" within Scenario Analysis that you can refer to as well.
When you add a new scenario by copying from an uploaded return, the first screen you see may be a summary of the various fields in the scenario that are populated with an "override" that either overrides an otherwise calculated field or limits some of Holistiplan's extended functionality. We have to create these "override" fields to maintain fidelity between the results of an uploaded return and an immediate copy of that return, particularly when Holistiplan may not have the necessary information to confirm that the circumstances related to that line item exist beyond the actual return.
The Calculation Override screen (see below) details the nature, amount, and location of any override in your scenario.
You can view (and in some cases, clear) the overrides directly from this summary screen. In the example above, a user could view both the Wages and Taxable IRA distributions overrides (which exist because the 1040 does not attribute wages or IRA distributions to specific taxpayers.
In this case (as well as in the case for IRA distributions, pension/annuity income, Social Security, etc.), deleting the override allows a user to attribute the income item to either taxpayer. This can be helpful for planning purposes, but is also a requirement for certain states that instruct taxpayers to allot income by taxpayer.
Additionally, a user could could completely clear the overrides for the QBI Deduction and Nonrefundable credits (which simply carry forward the same amount as claimed on the copied return), thereby instructing Holistiplan to use the calculated amounts for either based on the details of the scenario.
Note how in the example below, Scenario 2 uses the QBI Deduction amount listed in the Calculation Override field, despite a calculated amount that's noticeably higher.
By clearing the override field, Holistiplan will instead use the calculated amount.
Note: "Clearing" an override means deleting the entry in the override field in its entirety. No characters must remain for the override to be cleared. Entering a "0" in an override field does not clear it, but instead overrides that field with a "0" value.
To clear an override amount directly from the Calculation Override screen, simply click the "Clear Field" link.
If you close the Calculation Override screen without making any adjustments and your scenario still includes an override, you will see a see a red warning icon in the upper-right hand corner of the scenario column.
Clearing these overrides will unlock other features, such as calling out when an early withdrawal penalty may apply to an IRA distribution, or for Premium subscribers, allow you to access the Roth Explainer, which requires allocating Roth conversion amounts to a specific taxpayer.
If you have any questions along the way or are having issues clearing overrides in your scenario, please reach out to our Support Team for further assistance.