What are the Summary Totals Spreadsheet numbers?
The Summary Totals Spreadsheet numbers are best understood in conjunction with two other reports. These are: The After-Tax Cash Flow Spreadsheet provides the next level of detail for the income columns. On the After-Tax Cash Flow Spreadsheet, you will see the components that make up the “total income,” “total expenses,” and “total taxes” columns of […]
Can I change the title of the Marital Property Division Report (Community Property Division Report)?
Yes, You can create a custom title for the Marital Property Division report (also known as the Community Property Division report). At the top of the Marital Property Division report screen, click the link for options. On the options screen, at the bottom, you can enter the new title. You can do a similar thing […]
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.
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 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 […]
How can we negotiate divorced spouse benefits under current Social Security rules?
Under Social Security rules as amended in November, 2015, a divorced spouse may not claim divorced spouse benefits unless the worker spouse is also claiming benefits. (The divorced spouse benefit is 50% of the worker spouse’s benefit, and applies only if the parties have been married for 10 years or more, the divorced spouse is […]
Can we value Social Security as a defined benefit pension?
Yes, we can. Conceptually, there is no difference between Social Security and a defined benefit pension. Both are a stream of payments that may increase with inflation, begin at a certain age, and continue until the recipient dies. Both may have annual increases. For Social Security, this is the annual inflation adjustment. For defined benefit […]
How do I handle derivative social security benefits?
There are two categories of Social Security benefits received by children. 1. Social Security payments based on the parent’s status. The parent must be disabled (the usual case in a divorce context); or retired and entitled to Social Security; or a parent who died after working long enough at a job where he paid Social […]
What if a spouse is going to take half the other spouse’s social security?
The software only allows a spouse to enter their own Social Security. To enter a situation where Party B is taking half of Party A’s Social Security, please do the following: 1. On the Income, in the section for income other than wage income, find the line for Social Security income and click “more info”. […]
The Social Security income projection seems off. Why?
Be sure to indicate that the amount you enter is “per month” or “per year,” as appropriate for your case. If you entered a monthly amount, but the program is treating it as “per year,” it will be insignificant in the charts. Also: If the client won’t be age 62 (or 67 or whatever retirement […]