This is the first part of a four-part series describing the cash flow and tax advisor calculator feature. This tool can assist you in determining the effective tax rate for each year within your financial plan. It also includes a worksheet to distinguish between cash flow and tax liabilities. This section provides step-by-step instructions for entering wages while the client is employed into the cash flow and tax advisor calculator and obtaining the effective tax rate.
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: 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: Wages: Enter in the total income into the wages cash flow and tax return columns.
Step 8: Calculate: Click on the green calculate button underneath the Cashflow and Tax Advisor heading.
Step 9: Tax Bracket: Scroll down the page and take note of the marginal tax bracket and effective tax-rate "Eff Tax rate."
Step 10: Save: Click on the green Save button underneath the Cashflow and Tax Advisor heading.
Step 11: Structured Income Planning: Click on the Structured Income Planning button underneath the Client’s name heading.
Step 12: Edit: Click on the green Edit button underneath the Structured Income Planning heading.
Step 13: Add Inc Tax: Click on the green Add Inc Tax button underneath the Structured Income Planning heading.
Step 14: Tax Name: Enter in a Title for the income tax.
Step 15: Starting Effective Tax Rate: Type in the effective tax rate. 
Step 16: Save: Click on the Save button underneath the Manage Tax heading.
Step 17: Structured Income Planning: Two new columns have automatically appeared, the Income Tax and After Tax Income.
Step 18: Display Options: Click on the green Display Options button underneath the Structured Income Planning Heading.
Step 19: Column Display Options: Click on the green View Tax Rates button.
Step 20: Structured Income Planning: The Income Tax Column will automatically show the percentage amount.
Step 21: Save: Click on the green save button underneath the Structured Income Planning 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.
