This section allows you to enter federal, state and municipal tax information for the client.
To add tax information, do the following:
In the Federal Tax section, the Country drop-down has United States selected by default, unless you added another country to the Definition Master and selected it on the General page of the client record.
If United States is selected, the Income Rate and Capital Gains Rate cannot be altered, as they are calculated automatically based on client income. If a different country is selected, enter percentages for the income rate and capital gains rate.
Note: This information is used only in the wealth forecasting area of Planning. Morningstar Office does not display the actual federal tax rates because, through the course of a wealth forecast, different tax rates will be used at different times, depending on the income at the time.
In the State Tax area, click the State drop-down and select the state in which the client pays taxes.
Note: If you selected a country other than United States in the Federal Tax section, the State drop-down will be disabled.
The state Income Rate and state Capital gains rate are automatically populated with rates based on the state selected. To use different rates, check the Override Rates box and enter percentages for the desired state income rate and state capital gains rate.
In the Municipal Tax box, enter the municipal tax rate, if applicable.