Income Information Window

[Kathleen Reynolds]

#4426

Click the Add Income button on the Income, Expenses, Contributions, and Distributions section to create a new Income item and display the Income Information window.

The Income Information window prompts you for information about the income item. Enter a description, the annual amount received from the income, how much that amount should increase each year, where the income should be invested in, and the years the income will be received.

If the income starts in a future year, you also have the opportunity to apply the annual percentage increase in the amount from the first year of the analysis (instead of from the first year the income starts arriving). This lets you type in the income amount in today’s dollars, and then use an inflation rate for the annual increase.

If the income is from Social Security, check the Income is from Social Security checkbox. If you are using the AGI method to calculate taxes, the calculations tax social security income appropriately for the client’s AGI in each year.

If the income is subject to income tax, check the Income Subject to Income Tax checkbox. This causes the income to be included in the AGI calculation, and also to be reduced for income taxes before getting invested in the target account.

If you wish to enter the income on a year-by-year basis, check the Use Custom Year-by-Year Income checkbox.

Income is used to pay expenses before being invested in the account you specify.

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