Federal 1040 Calculated Returns

1040 Calculations

The 1040 Calculations show a detailed breakdown of the current and proposed 1040 federal calculations. The Current column should be similar to the client's projected federal values.

Fed1040Calcs

The input dialog for Refund/(Payment) allows you to enter the desired refund the client would like to receive. TRAK will adjust the client's allowances and additional federal tax to match the projected refund.

Using Year-to-Date

If data for the client or spouse year-to-date values is entered, the values are always included in the Partial Year scenarios. The values may also included in the Quick Max, Proposed #1 and Proposed #2 return illustration by checking the Use YTD Values in 1040 the Calculations check box at the top of the Federal 1040 Calculations box (only visible if year-to-date data is entered and the respective scenario is selected).

Fed1040UseYTDValuesCheckBox

The Current scenario uses year to date information when the illustrated paycheck includes year-to-date information. When printing, the Current scenario will use year-to date information when the aforementioned check-box is checked.

Federal 1040 Net Income Values

The Net income values for the client and spouse are calculated using the raise check number and the raise percent from the employer file. For an itemized list of values used to derive the Net Income values, click on the help button to the right of each value.

Fed1040CalcIncomeHelpBtn

A dialog will appear showing how the Net Income value was calculated.

Fed1040CalcNetIncomeCalcDlg

Federal Brackets

Below the Federal 1040 Calculations TRAK displays the Federal 1040 bracket information and how the income falls in each tax bracket.  The values illustrated may provide incentives for a client to contribute additional funds to either the pre-tax (to lower their top tax bracket) and/or to increase funding to a Roth.

Fed1040CalcTaxBrackets