The Tax and Cash Flow Form looks very much like a spreadsheet. It also behaves very much like one.
When you create a new Tax and Cash Flow Form, you must fill out Row 1, the Filing Status.
All other rows are optional, but not unimportant.
All numeric figures on the Tax and Cash Flow Form are dollar amounts, except the figures on the first two rows:
Row 1. Filing Status
Row 2. Exemptions
If you want to get a fairly good grasp on the client's situation, you probably will want to enter:
Row 2: Exemptions: Enter the number of exemptions, including the dependent children.
Rows 3 through 6: Earned Income including salaries or self-employment income. MasterPlan calculates FICA and Medicare taxes based on the type of earned income.
Note: If the client does not have to pay FICA or Medicare taxes, you enter a percentage of 0 in the Social Security Eligibility field on the EditClient | Clients Tab.
Rows 7 and 8: Social Security Benefits.
You can enter the benefits here for the years the clients are retired, controlling when the benefits start and stop.
You can ignore these rows and ask MasterPlan to calculate the benefits by entering an appropriate percentage in the Social Security Eligibility field on the EditClient | Clients Tab.
You can combine methods. Be sure to read the F1 help windows.
You can also instruct MasterPlan to pay FICA and Medicare taxes but not pay any benefits.
For the most part, Rows 9 through 32 on this tab cover amounts that can be entered elsewhere on the database. We discuss these in detail in the section entitled Tax and Cash Form Entry - Detailed.