Insufficient Withdrawals and Low Tax Payments

Hello, I am a 3-week user trying to confirm ESP aligns to some degree with my simple spreadsheet planning.

The taxes ESP projects appear far too low. ESP's Housing Tab on the Excel report properly shows housing expenditures, but, if added to discretionary spending, my federal and state taxes on the adjacent tab should be much higher that they are.

Roughly, with zero income and annual consumption of $56k, plus annual housing expenditures of $24K, I'll need to pull $80K from my my retirement account. With current taxes law for a married couple, that is $56K of taxable income. That should yield federal and CO taxes of $6,339 and $2604. Instead, my Tax Tab shows just $3,591 and $587. In addition, ESP only shows me pulling out enough money to cover the $56K annual consumption, none to pay the mortgage. Even taxes on just that $56K gross would be higher than reported on the tax tab (4.65% on 32K net taxable in CO = $1488).

What can be so wrong? What can I try to make sense of this?




dan royer's picture

It would be easier for me to follow this if you would upload your database or your PDF report so I can take a look. The calculation of federal and state income tax is pretty straightforward in the program.

Your discretionary spending (consumption) is what's left after taxes and housing costs (and perhaps a few other things: see total spending report).

I can help you to read the report if you will attach that PDF to this ticket. I can take a look and explain.


dan royer's picture

Actually: don't upload your database or PDF report here. Create a support ticket and do it there so that it's not public.


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