Accurate Income Tax Calculations
Offering the most accurate set of calculations available, top-rated BNA Income Tax™ Planner allows you to quickly calculate federal income taxes including alternative minimum tax, capital gains, estimated tax payments, stock options, and more.
Taxes
- Regular tax—including future year indexing based on user-entered inflation factor
- Alternative capital gains tax—special treatment of the various gain/loss categories
- Farm income averaging tax
- Alternative Minimum Tax
- Automatically computes AMT including the phase out of exemptions, recomputed passive losses, the AMT alternative capital gains tax, the minimum tax credit, and much more
- Automatically handles AMT preferences for Sec. 1202 stock
- AMT rules for children - User can adjust AMT exemption amount to reflect anticipated changes - State taxes (with BNA Income Tax Planner with Fifty States)
- Automatically calculates and integrates resident state income taxes for all states, New York City, and Washington DC, and nonresident taxes for over 30 states including California, Connecticut, New Jersey, and New York
- Special worksheets for state tax payment entries and calculation of state refundable credits, federal deductions and refunds. Separate resident and nonresident worksheets
- Simultaneous calculation of nonresident taxes for NY and a second nonresident state - Self employment tax
- Handles wages subject only to Medicare withholding
- Handles statutory employee wages - Estimated tax payments and penalty
- Automatically performs quarterly annualization for purposes of required estimated tax payments
- Produces 1040-ES/1041-ES estimated payment vouchers
- Supports both regular and annualized income installment methods - Minor child
- Simultaneous parent and child computations for unearned income of minors and certain children under 24
- Lets you include income on parent’s return or tax child separately - Lump sum taxes
- 5- and 10-year forward averaging
- Separate taxpayer-spouse computations
Limitations & Phase-outs
- Phase out of personal exemptions
- Standard deduction, including amounts for taxpayers who are over 65 or blind
- Phase out of itemized deductions and the limitations on medical, casualty losses, charitable contributions, employee business expenses, investment interest expense, and miscellaneous business expenses
- Passive activity income and loss computations
- Regular and Roth IRA limitations
- Keogh and SEP deductions
- Sec. 1231 and casualty gains/losses
- Capital gains/losses, limitations, and carryovers
- Applies special rules for taxpayers who must itemize
- Can automatically select either the standard or itemized deduction based on which produces the lowest tax
- Calculates:
- Includible portion of Social Security benefits
- Excludable allowable portion of Series EE educational bond interest
- Deductions for interest on educational loans, higher education expenses
- Includible portions of employer provided dependent care expenses, employer provided adoption assistance
Credits
- Credit for taxes paid to nonresident states handled by the program
- Dependent Care credit and exclusion
- Adoption credit and exclusion
- Credit for Elective Deferrals and IRA Contributions
- Minimum Tax credit
- Child Tax credit with AGI phase-out
- HOPE and lifetime learning credits with AGI phase-out
- First-Time Home Buyer credit
Additional Calculations
- Domestic Production Activities Deduction
- Foreign Earned Income Exclusion and Housing Deduction (both regular and AMT) for all years since 1987 (including the special tax on excluded income introduced in the Tax Increase Prevention and Reconciliation Act of 2005)
And, to help compare cash flows at different times on a meaningful "like to like" basis: Present Value Worksheet
- Computes present value of total taxes to be paid over multiple year periods together with cash flows to be generated by the transactions under analysis
- Optionally set the program to reduce federal taxes by nonrefundable credits when computing the present value of such taxes
