2011 Taxes
What assumptions are currently coded in ESPLanner for taxes beginning in 2011
Thanks
James
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That's a pretty general question. What specifically are you looking for? Until the tax forms are actually published, we base things on the last published tax forms plus fudge factors based on inflation in various places. A few odds and ends will probably make it into the code before then, but we haven't made any specific decisions at this point.
Best,
Dick Munroe
Dick, Your correct it was too general. Specifically does the program assume the Bush tax cuts expire and we go back to the pre tax cut brackets? And, if yes, have the dollar amounts where each bracket starts and ends been adjusted for inflation?
Thanks,
James
Yes and yes.
Best,
Dick Munroe
Dick,
James's question about how ESPlanner handles expiration of the Bush tax cuts and your response were as follows.
"Specifically does the program assume the Bush tax cuts expire and we go back to the pre tax cut brackets? And, if yes, have the dollar amounts where each bracket starts and ends been adjusted for inflation?
Thanks,
James
2010-09-01 19:35 reply"
You replied.
"From: Dick Munroe
Yes and yes.
Best,
Dick Munroe
2010-09-02 05:30reply"
On 2010-13-03 I asked essentially the same question as James.
"1. Am I correct in my understanding that the federal tax rates used for calculation of taxes in 2011 and beyond assume expiration at the end of 2010 of the "Bush tax cuts"?" "Submitted by JohnP3 on 13 March 2010 - 8:33pm."
Your response to my question as follows seems to contradict your answer to James.
"From: Dick Munroe
1. No (or at least not in any significant way). We do our tax calculations based on the last published tax forms, in this case 2009."
"reply 2010-03-14 08:29"
Please help me understand the correct answer.
Thanks.
Kind regards,
John
Elsewhere, I've also said that we MOSTLY don't anticipate actual implementation of the tax codes. The Bush tax cuts were one of the few that we DID anticipate disappearing (although I would have to check details of the code to make sure that we actually got it right).
Best,
Dick Munroe
Dick,
I'm not sure what you mean by "details". Please confirm whether ESPlanner uses income tax rates and regulations for 2011 and beyond based on 2009 published tax forms or based on the income tax rates and regulations in effect prior to the Bush tax cuts. If there is some other basis for the income tax rates and regulations used, please confirm the source(s).
Thanks.
Kind regards,
John
Perhaps this question has been answered elsewhere but the 2.18.26 release (2/15/2011) uses the latest fed tax rates in 2011 (i.e Bush rates adjusted for inflation). I believe prior versions did too.
But Illinois users should note that the Illinois income tax rate being used here appears to be the old 3% rate...it is now 5% as of 1/1/2011. Until the Illinois rate is updated in the ESPlanner hard coding, you can use the Assumptions tab to adjust your state taxes upward by the 67% (from 3% to 5%).