to convert Income Taxes to Monthly amounts.
Choosing Tax Method
SupportCalc provides three different methods of computing taxes.
1). Manual allows you to enter taxes using a pay stub or other information concerning the tax actually paid. Use SKRATCHPAD to convert Income Taxes to Monthly amounts.
Be aware, though, that simply entering the withheld amount from a pay stub will most likely result in a refund check to the wage earner at the end of the year. In the case of the person obligated to pay support, this increases the amount of withheld income, which in turn lowers net income, and therefore lowers the child support transfer payment amount.
2). TaxCalc 1040 To counter the "over-withholding" problem, TaxCalc 1040 method provides a more comprehensive tax analysis to determine more accurately the actual tax owed by an individual. This method requires more information about the individual taxpayer.
3). Circular E This method is more simplistic than the TaxCalc 1040 method. You still have control over the Marital Status of the parties, Number of Allowances claimed, and Child Credits. Using this method without consideration of the possible tax refund produced may result in the same over-withholding problem as Manual.
Please note that all three tax methods will produce an ESTIMATE of the actual tax owed. These methods are not intended to replace an accountant for the purposes of computing taxes actual taxes. But any of the three methods will give a quick and easy tax amount to get you "in the ballpark." They also provide a fast check on opposing counsel as to the proper amount of tax owed.
The TaxCalc 1040 and Circular E methods allow you to print out a separate worksheet showing the numbers used. You can also sent the information to the "Other Factors" text area, using the Add Auto Comment button.