How can I specify local city wage taxes?
Some municipalities, particularly in Ohio and Pennsylvania, levy city wage taxes. These taxes are a percent of gross wages paid to people who work in the cities. To enter a city wage tax, click “more info” on the line where you enter wages. You will see an entry for a percent for local wage tax […]
How should I handle Health Savings Account (HSA) and Flexible Spending Account (FSA) balances?
Our approach to Health Savings Account and Flexible Spending Accounts is as follows: 1. When the contribution is made, we treat it as a deduction. Enter it in the appropriate living expense category (health insurance or child care, usually), and choose a tax category of “FSA, Flex, Caf Etc.” 2. When the actual expenditure out […]
How can I calculate child support modifications if there is split custody (each parent is custodial for one or more children)?
Here are the steps to take: 1. Save the file under a different name. This will be a “what if” file. 2. In this file, indicate that the oldest child is not of an age to be eligible for child support, by clearing the “Eligible Age” box on the line for that child. 3. See […]
How can I calculate Family Support?
“Family Support” is a calculation that is popular in California. It follows a California statute that allows people to designate payments from one spouse to another as “Family Support,” meaning an undifferentiated combination of child and spousal support. The hope is that this all will be taxed as spousal support, but that may not happen. […]
How can I handle the reimbursement (equalization) in a situation in which the wife has given separate property to the husband (or vice versa)?
Just specify that the separate property is given to the other party. Then the situation is automatically reflected on the Marital Property Division screen. Let us illustrate in a case that has only one asset. It is a real estate property worth $500,000 (no mortgage, for simplicity), in which the wife has a $100,000 separate […]
How do I compute the child support guideline amount?
Enter the information relating to child support on the Enter Data tab, on the screen for child support there. View and print the child support guideline worksheet on that tab, on the screen to print child support. The software can calculate child support for twenty-two states: California, Connecticut, Colorado, Florida, Georgia, Illinois, Massachusetts, Maryland, Michigan, […]
How do I show a retirement from a business, or sale of a business?
Go to the “more info” screen for the business. You will see a question about whether the business owner will retire or the business will be sold. the question is worded this way so it can cover both retirement and sale. This is where you enter a sale or retirement date. If the business has […]
Where do I enter tax withholding or estimated tax payments?
You should ignore (i.e., not enter) both withholding and estimated payments. Here’s why: The software calculates the actual taxes due on an annual basis. Cash outlays such as estimated payments and withholdings affect the timing of payments, but not the amount. To see this, think about the cash flows. First, withholding or estimated payments are […]
How do I enter a defined benefit pension?
Enter defined benefit pensions on the Assets & Debts screen. 1. Go to the Enter Data > Assets & Debts screen. 2. Click the button to create a defined benefit pension asset. 3. Enter a description and specify who is the owner of the plan. 4. Optionally, enter the retirement age and monthly benefit. If […]
How do I enter a buyout of the marital home?
The software makes it easy to enter a buyout of the marital home. Use the following steps: 1. Enter the real estate property. If you have not already done so, go to the Enter Data > Assets & Debts screen, and click on the button to add a Real Estate asset. 2. Enter real estate […]