The Calculate feature on the cash flow and tax advisor page enables SIPS to automatically determine the effective tax rate for your forecasted year. Below are the step by step guidelines for using the Calculate function on the Cash Flow and Tax Advisor page.
To learn more about the Cash Flow and Tax Advisor menu see articles:
To learn more about the Cash Flow and Tax Advisor individual column features see articles:
- Hide/Unhide Feature for Individual Tax Columns
- Permanent Deletion for Individual Tax Columns
- Downloading a 1040 Sample Tax Form
To learn more about forecasting effective tax rates see articles:
- Part One: Forecasting Effective Tax Rates While the Client is working
- Part Two: Forecasting Effective Tax Rates While the Client is in retirement and before Social Security Disbursements
- Part Three: Forecasting Effective Tax Rates While the Client is in Retirement and Social Security Starts Up
- Part Four: Forecasting Effective Tax Rates in Retirement: RMDs, Social Security, and Roth Withdrawals
- Part Five: Adding Expenses into the Cash Flow and Tax Advisor Calculator
Step 1: First Year Income: See what incomes need to be modeled in the cashflow and tax advisor to determine the effective tax-rate for that year.
Step 2: Cash Flow and Tax Advisor: Click on the Cash Flow and Tax Advisor button underneath the Client’s name heading.
Step 3: Edit: Click on the green Edit button underneath the Cashflow and Tax Advisor heading.
Step 4: Tax Filing Name: Tax Filing Name: Click on the dropdown to select the tax filing (client 1, client 2, or joint).
Step 5: Tax Filing Year: Click on the dropdown and select which tax year you would like to use. SIPS has the ability to create hypothetical returns for past and future years.
Step 6: Scenario Title: Enter in a new title for the scenario.
Step 7: Incomes: Enter in incomes into the wage’s cash flow and tax return columns.
Step 8: Expenses: Enter in the expenses for the particular tax year. If you do not have the data for expenses, skip this step.
Step 9: Calculate: Click on the green calculate button underneath the Cashflow and Tax Advisor heading.
Step 10: Tax Bracket: Scroll down the page and take note of the marginal tax bracket and effective tax-rate.
Step 11: Save: Click on the green Save button underneath the Cashflow and Tax Advisor heading.
If you feel you need more support or would like to set up demo time with one of our representatives, please contact us at: +1-888-449-6917 or support@planscout.com.
