Troubleshoot taxes and inflation in the Lifetime
Planner
The number from
the Tax Estimator(The Money feature that helps you estimate your tax
liability based on the financial information that you track in
Money. ) may be lower than your calculated effective income
tax rate on the Taxes & inflation page. There
are several possible reasons:
The Tax Estimator calculates your federal tax rate. The
effective income tax rate used on the Taxes &
inflation page includes federal, state, and local
taxes.
Money calculates retirement tax rates automatically. Your tax
rate after retirement is based on the effective income tax rate
specified on the Taxes & inflation page in
Lifetime Planner and your projected income during that period.
You may have income (such as gift money, an inheritance, or
proceeds from the sale of a house) that is taxed at a different
rate than your investment and salary income or may even be
tax-exempt. If so, you can enter a custom tax rate for that special
income as you use the New Income wizard to add that income to your
Lifetime Plan:
In the Lifetime Planner, click Income, and
then click Other income.
Click New Income.
Follow the instructions on the screen. On the What's
the growth rate? And what about taxes? page, in the
Tax rate on this income list, select No
tax (0%) or A custom rate of.
If you select the custom rate, enter the rate in the box to the
right.
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