Specify the taxes to apply to the portfolio. Be sure to zero out all tax rates if you’re creating a tax-free portfolio.
Calculate Tax Info
Filing Status - Use the drop-down menu to select an option. Choose from No Taxes: tax deferred holding or portfolio, Single: unmarried, no dependents, Married Filing Jointly: married, filing a joint tax report with your spouse, Married Filing Separately: married, filing a separate tax report from your spouse, Head of Household: responsible for dependents.
Taxable Income - this is the amount of income subject to income taxes for the year. This is found by subtracting the appropriate deductions (IRA contributions, alimony payments, unreimbursed business expenses, some capital losses, etc.) from the adjust gross income.
Pay Taxes - Use the drop-down menu to select an option to pay any taxes that are assessed either out of pocket (as if the taxpayer writes a check to pay for them) or by selling shares equal to the amount of taxes.
Tax Rate % - The Federal Income and Capital Gain fields are automatically populated based on the filing status and taxable income. However, you may type alternate rates.
Federal Income - the maximum federal income tax rate based on the filing status and taxable income entered.
Capital Gain - A tax assessed on profits realized from the sale of a capital asset, such as stock or mutual fund. The maximum long-term capital gains rate is based on the filing status and taxable income you entered.
State - If you want to include a state tax rate percentage, type it here.
See Also