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TABULAR PROJECTIONS > "Taxes" page > "Tax Rates"

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Last Post by Stuart Matthews 3 years ago

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Wolfram Volpi

(@wolfv)

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Joined: 4 years ago

Posts: 32

Topic starter May 15, 2023 6:59 am

I have some questions about the PRC > TABULAR PROJECTIONS > "Taxes" page (screenshot attached).

Is column heading "Federal Income Tax" the estimated dollar amount of Federal Income Tax to be paid?
In general, are column headings under "Tax Rates" the estimated dollar amount of taxes to be paid?
Should column heading "State and Taxable Income" be under the "Taxes" heading?

Also, how is the "Effective Tax Rate" column calculated?

Attachment : Screenshot_PRC_TABULAR-PROJECTIONS_Taxes.png

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TABULAR PROJECTIONS Tax Rates

Stuart Matthews

(@smatthews51)

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Joined: 6 years ago

Posts: 618

May 15, 2023 8:25 am

Yes, the column entitled "Federal Income Tax" in the second gray row is the estimated Federal Income Tax to be paid. In your screenshot, there's an obvious misalignment between the major column headings (the first gray row) and the minor column headings (the second gray row), and that's under user control. The minor columns are selected by the user via the Tabular Projection > View Mgmt page and are then positioned left to right via the left/right icons on each tabular projection page. These actions have no effect on the major column headings. They're controlled by the user via the "add header", "delete header" and "delete all headers" buttons at the top of each tabular projection page. The use of those buttons is described in the manual so I won't go into it here. The major and minor column headers are correctly aligned when you select one of the default views (narrow non-retired, narrow retired or wide view) on the View Mgmt page but they do not change when you add, delete or re-position the minor columns.

Effective Tax Rate = (federal taxes + state taxes + FICA/NIIT taxes + AMT) / all forms of taxable income in any given year, where taxable income includes all income defined on the Income page (minus contributions to tax-deferred accounts), growth of the regular investment account, RMDs and Roth conversions.

Stuart

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Wolfram Volpi

(@wolfv)

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Topic starter May 15, 2023 8:06 pm

@smatthews51 Thank you for your quick response.

I'm working through your Effective Tax Rate equation.
Does the "Federal Income Tax" column (on TABULAR PROJECTIONS > "Taxes" page) include capital gains tax?

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Alan Hodes

(@hodes556)

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May 18, 2023 5:41 pm

Tagging onto the question of whether "Federal Income Tax" on TABULAR PROJECTIONS > "Taxes" page includes capital gains tax (I'm guessing it does), does the "Federal Income Tax" include AMT (I'm guessing it does not)?

Thank you!

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Stuart Matthews

(@smatthews51)

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Joined: 6 years ago

Posts: 618

May 18, 2023 7:18 pm

@wolfv Yes, federal income tax includes capital gains taxes.

Stuart

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Stuart Matthews

(@smatthews51)

Member Admin

Joined: 6 years ago

Posts: 618

May 18, 2023 7:19 pm

@hodes556 Correct in both cases. Federal income tax includes capital gains taxes but AMT is shown separately.

Stuart

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