Tax Planner Summary- Marginal Rate Displayed is Incorrect
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markus1957
SuperUser, Windows Beta Beta
In the Tax Planner, Tax Planner Summary screen, the Marginal Rate displayed is incorrect. The calculation used to generate the displayed value fails to subtract Qualified Dividend Income (QDI) and Long-term Capital Gains (LTCG) from the Taxable Income value.
It should be noted that the underlying calculations of taxed owed properly segregate QDI and LTCG from ordinary income and apply the correct tax rates to the segregated categories of income to produce the correct tax owed. This is a display issue that affects planning where a user may want to know the tax table rate that would be applied to the next dollar of ordinary income.
The Marginal Rate shown seems to be based solely on the Taxable Income value in the Summary screen. It should subtract QDI and LTCG before deriving the tax table rate displayed as Marginal Rate.
It should be noted that the underlying calculations of taxed owed properly segregate QDI and LTCG from ordinary income and apply the correct tax rates to the segregated categories of income to produce the correct tax owed. This is a display issue that affects planning where a user may want to know the tax table rate that would be applied to the next dollar of ordinary income.
The Marginal Rate shown seems to be based solely on the Taxable Income value in the Summary screen. It should subtract QDI and LTCG before deriving the tax table rate displayed as Marginal Rate.
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