Income Tax
The Income Tax module enables a planner to complete a simple, but detailed, income tax analysis for all but the most financially complex clients (advisors can use Cash Flow Consultant (CFC) for clients with complex tax situations). The goal of the Income Tax module is to provide a simple way for an advisor to estimate a client’s tax situation including: determination of the marginal and average tax rates for the client. The module addresses: self-employment taxes, business income, earned income, investment income, capital gains, adjustments, deductions, exemptions and the alternative minimum tax (AMT). The module can be used to estimate taxes for the past year, the current year, and/or the following year.
Module Target User – Advisors
Completion Time – 15 to 25 minutes
This module:
- Estimates the Federal income tax liability for a household
- Includes married filing jointly, single, head of household, and married filing separate
- Calculates taxes for the previous year, the current year, and up to two years into the future
- Calculates alternative minimum tax including carryovers and limitations
- Calculates appropriate limitations and carryovers for charitable contributions, investment interest
- Calculates limitations for medical expenses, casualty and theft losses, Social Security income, capital losses, personal exemptions, and child tax credits