Tax Credits and Deductions

This page covers the following location(s) in NaviPlan:

Enter Financial Data - Tax Details - Tax Details

Enter Financial Data - Tax Details - Tax Details - Misc. Deductions

Enter Financial Data - Tax Details - Tax Details - Misc. Credits

Planning Objectives :: Procedures :: Related Information

Planning Objectives

Note: If you are not using the Detailed Tax Method, many of the objectives and procedures on this page are inapplicable.

ClosedWhat tax details can I define on this page?
  • NaviPlan calculates many tax credits and deductions automatically. On this page, you can enter, edit, and delete those federal and state tax credits and deductions that are not automatically calculated by NaviPlan.
    • Deductions reduce the clients' taxable income.
    • Credits reduce the clients' taxes when calculated in each projection.
  • In NaviPlan, these tax transactions are funded by the clients' cash flow.
ClosedHow do I know which credits/deductions NaviPlan calculates by default?
  • To understand which credits and deductions NaviPlan has already calculated, use the Income Tax Deductions (Quick Actions menu - Reports - Income Tax) and Tax Credits (Quick Actions menu - Reports - Income Tax) standalone reports.
  • The following carryovers, carryforwards, credits, and donations are entered on the Historical Data page (Plan Management section - Assumptions category) and should not be entered here:
    • Unused charitable donations
    • Alternative minimum tax carryforward credits
    • Capital loss carryovers

Procedures

ClosedHow do I add detail for a Misc. Tax Deduction?
  1. From the Tax Details page, click Details for the deduction you wish to edit.
  2. Review the basic information you have entered in the following fields:
    • Description
    • Owner
    • Type
    • Applies to
  3. Enter the Original Amount Yearly Change for the selected deduction.
    • Enter the Original Amount and indicate whether or not it is Indexed by Inflation Before Start Date.
    • If applicable, use the Infl, +/- Add'l, and Amount fields.
  4. Define when the deduction is Applicable.
    • Define the Start Date and End Date for the deduction.
  5. When you are satisfied with these options, click OK.
ClosedHow do I add detail for a Misc. Tax Credit?
  1. From the Tax Details page, click Details for the credit you wish to edit.
  2. Review the basic information you have entered in the following fields:
    • Description
    • Owner
    • Type
  3. Enter the Original Amount Yearly Change for the selected credit.
    • Enter the Original Amount and indicate whether or not it is Indexed by Inflation Before Start Date.
    • If applicable, use the Infl, +/- Add'l, and Amount fields.
  4. Define when the credit is Applicable.
    • Define the Start Date and End Date for the credit.
  5. When you are satisfied with these options, click OK.

Related Information




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