Documentation of ESPlanner's Federal Income Tax Calculations


Is there any documentation of ESPlanner's federal income tax calculations?

The amounts shown in the ESPlanner tax report are $55k, but my federal income taxes have been in the $70,000 to $75,000 range.

Rather than trying to reverse engineer the ESPlanner numbers, I am hoping some documentation or formulas already exist that show this.

I couldn't find anything in the Help Manual.

Any suggestions?


Steve S


Well, if you are referring to the "Federal Taxes - Joint Filer" table, that's not answering my question very well.

There are many columns in the chart, and it is NOT at all clear how the columns relate to one another.

Do I have to ask you specific questions about every column in the chart, or do you have some documentation of the formulas that you can send to me?

So, for example the chart shows:
Earned Income = 319k
Nom Assets Inc = 34k
Adj Griss Income = 272k

What is Nom Assets Inc?

How does ESP go from Earned Income to AGI?

In 2011, my actual earned income was 319K, and my AGI was 324K, so I'm not getting where ESP gets and AGI of 272k for a year with the same earned income.

I have a fairly good understanding of federal income taxation, but there are some fundamental things about the ESP tax chart that don't make sense to me.

Any help you can provide would be appreciated.

The most useful thing is to just get the formulas ESP uses to calculate the columns shown in the chart you referred me to, so I don't have to reverse engineer the ESP numbers and waste a lot of time doing so.

Thanks in advance

Steve S

Hi Steve,

See the following comment from Larry Kotlikoff:

The 1040 form and all its worksheets is our documentation. Our code lines up line for line with those forms and worksheets. We do all the tax calculations in nominal terms and then display everything in today's dollars. The report is just showing some of the elements of the tax calculation. It's not picking up everything going into AGI.

Nom = Nominal Asset Income

Earned income to AGI subtracts out deductions, 401k contributions, and the like.

Of course, there's also their state income tax calcs.

There's a lot of info elsewhere in the tax section of the forum although it can take some time to dig through.


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