How do I make non-wage income non-taxable?
To specify that non-wage income is non-taxable, you may do the following: 1. Go to the Case, Income & Expense screen for your state’s financial affidavit. 2. Scroll down until you find the section for the income you are entering. (If you do not find it explicitly, there will be blank lines for you to […]
How can I specify that wages are not taxable for Social Security or state taxes?
You can specify that any wage is exempt from federal income tax, state income tax, Social Security tax, and/or Medicare tax. Here’s how: 1. If you are entering wages on a child support screen, click the “Complete” tab at the top. (You do not have to do this if you are entering wages on an […]
Why are state taxes different for itemized deductions than for “actual” state taxes?
This is due to the software’s resolving of a bit of circular logic. Federal taxable income depends on the state tax, because state tax is an itemized deduction. But in some states, state tax depends on federal taxable income. So the computation is circular. Here’s how the software resolves this: For the calculation of the […]
Why is the income for child support higher than the income I entered?
This can happen if there is an addition to income from federal subsidies that are administered through the tax system. These subsidies include the Earned Income Credit and the Child Tax Credit. To see if this is the case, see if the Federal Income Tax number on the guideline worksheet is negative. A negative Federal […]
Why is the software’s tax calculation different from what I see on the pay stub?
The software calculates federal income tax, after accounting for all deductions and credits, using actual current numbers. The pay stub can be very different for a number of reasons: If you have any question how the software’s tax calculation is done, you can see the calculation in detail on the View/Edit Taxes report.