RetirementView questions


1) How does your software deal with social security benefit reduction If a client continuous working when starting receiving social security?

- the program does NOT reduce the benefits automatically if they start soc sec and keep working. The program just uses what you enter. Interesting suggestion though that we will consider.

2) How to specify social security income by ourselves?

- if you just enter the beneft under "Annual Social Security" then you are setting the income yourself. Note that the program will net or not net taxes out based on Settings -> Taxes whether you enable that or not.

3) On the report spreadsheet, why some years' social security income have tax, but some years' do not?

- the program implements the IRS social security taxation algorithm. If their provisional income is under a certain threshold it is not taxed. At higher incomes it is taxed 50 or up to 85%.

4) Tax rate: Does your software calculate tax based on the tax rate we provided or apply proper tax rate bracket by stages. 10%, 15% and 25% based on the income level?

- it does not apply multi stage tax brackets because how do you tell whether the social security for example is this first moey or the last? Our program shows the breakdown so does each separately. it also aows for tax free income streams.
Program uses the "effective tax rate" directly to calculate the taxes. If you want to get more accurate then use the client's tax returns to calculate the effective rate.. total taxes paid divided by gross income.

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