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Planner Operations: Taxes
Nancy Gates avatar
Written by Nancy Gates
Updated over a week ago

Are you wondering how taxes are handled in PlannerPlus? Keep reading to learn more...

The Planner computes your taxes based upon sources of income such as work, passive income, Social Security, pensions and withdrawals from savings and investment accounts. Among the sources of gross taxable income there may be a variety of tax treatments.

The Planner includes tax payments in your expenses.

Taxes portrayed in the Insights > Tax > Estimated Taxes Chart represent the current year's taxes.

Taxes portrayed in the Insights > Income and Expenses > Estimated Expenses Chart represents the prior year’s estimated tax liability.

In most years you should be able to match the tax liability from one year's Insights > Tax > Estimated Tax Chart liability projection with the tax liability of next year's Income and Expenses > Estimated Expenses Chart. However, in years where unordinary events occur like if your income drops or increases significantly within a year, you will see more variability in the tax projections the following year due to an annual adjustment similar to a tax refund or payment due the IRS.

NewRetirement utilizes proprietary methods to reasonably estimate taxes and therefore tax estimates should only be considered directional. As needed, consult a tax professional for more precise tax estimate, payment, and filing requirements if you want more precise values.


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