Under the Advanced Tax Planning feature there is a way you can model additional tax liabilities and credits that are not captured in other places in the structured income plan so that you can calculate future tax estimates as accurately as possible. This guide will walk you through using the Advanced Tax Planning features. This tool allows you to model additional tax liabilities and credits. By including these details, you can calculate future tax estimates as accurately as possible.
Below is a hypothetical example if a client has a $400,000 house loan with an interest only mortage at 6%. They will be paying $24,000 mortgage interest per year from year one to seven.
If you haven't followed the steps to ensure your accounts, incomes, and expenses are setup correctly for Advanced Tax Calculations, see articles:
- Tax Calculation Options: Adding Assets into a Structured Income Plan
- Tax Calculation Options: Adding Incomes and Expenses into a Structured Income Plan
To learn more about Advanced Tax Planning functions see articles:
- Understanding the Advance Tax Planning Page
- Capital Gains Not in Accounts
- Other Schedule 1 Income: a K1 Hypothetical Example
- Other Schedule 1 Income: An Employer Match 401(k) Hypothetical Example
- Income Adjustments
- Schedule A Override
- QBI Override
- Tax Credits
- Approx. State Tax
To learn more about forecasting effective tax rates see articles:
Step 1: Income Tax Column Year 1 to 7: Note the amounts that are in the income tax column from year 1 to 7.
Step 2: Edit: Click on the green Edit button underneath the Structured Income Planning Heading.
Step 3: Manage: Click on the green Manage button within the Income Tax column.
Step 4: Schedule A Override: In the years 1 through 7 enter in the amounts. 
Step 5: Save: Click on the green save button underneath the Manage Tax Heading.
Step 6: Structured Income Plan: You will be automatically taken to the Structured Income Plan page.
Step 7: Income Column: Years 1 through 7 the amounts should automatically have been adjusted.
To understand the calculation process, follow the steps below. You will create a scenario in the Cash Flow and Tax Advisor page that has all of the details SIPS uses to calculate taxes for that year.
Step 8: Manage: Click on the green Manage button within the Income Tax column.
Step 9: Dropdown Arrow: Click on the dropdown arrow and select 2025 (year 1).
Step 10: Create Tax Scenario for Year: Click on the green Create Tax Scenario for Year button.
Step 11: Cash Flow and Tax Advisor: You will automatically be taken to the Cash Flow and Tax Advisor page, where the new tax scenario will appear on the right hand side of the screen. 
Step 12: Condense: Click on the green condense button underneath the Cashflow and Tax advisor Heading to condense the displayed data.
Step 13: Expenses All Other Schedule A: The amount should automatically be displayed in the expense category on the tax return column.
Step 14: Income Taxes: The amount should automatically be displayed in the Largest Ded-Schd A or Std tax return column. 
Step 15: Effective Tax Rate: Note the effective tax rate. This rate will be automatically reflected in Year 1 of the structured income plan. The effective tax rate rounded for display purposes.
Step 16: Approximate Tax Calc: Note the Tax Return calculation. The dollar amount will identical to the one on the Structured Income Planning page.
Step 17: Save: Click on the green Save button underneath the Cash Flow and Tax Advisor heading.
Step 18: Structured Income Planning: Click on the Structured Income Planning heading underneath the Clients name.
Step 19: Structured Income Plan Income Tax Column: You will automatically be taken back to the Structured Income Planning Page. The effective and approximate tax rates should automatically be changed to the amounts that were configured on the Cash Flow and Tax Advisor page. 
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