Hi. The question is when we
calculate a persons annual Retirement Income Goal, the sheet we provide lists
income taxes as part of their expenses. So when the report is generated,
the pension and Security show the net amount after taxes. This would
appear to count the taxes twice as they have been included in the annual income
figure. So when calculating the annual Retirement Income goal would it be
better to not factor in income taxes into it? The other way to calculate it
would be to include the taxes in the Retirement Income figure and show no state
or federal taxes in the software.
Thank you,
Answer:
If you enter a retirement income goal AND tax rates on
Other Assumptions,
then the income goal is "after taxes"... and program
will look at the taxability of different sources of income and take into account
taxes in different ways as needed.
If you want to calculate the clients taxes on your own
because you have their returns or something,
yes you can enter them on Special Expenses... which
would get added to the Retirement Income Goal amount.
So if you want to calculate their taxes on your own,
then yes enter 0% for tax rates.
If you
ever need to disable the taxes pulled from pension and social security, that is
a setting on the Settings menu under "taxes".