Data Entry: State and Local tax in RightCapital

State taxes

State income tax is automatically applied to a client's Plan, depending on the state in which they reside. This is determined when setting up the family profile or when setting up a primary home. This incorporates relocation — state taxation is automatically updated at the indicated date on the Primary Home Relocation Goal card.

Local taxes

To adjust municipal, city, and local taxes, navigate to  Profile > Expense and click on the Tax and Fees card and adjusting the Local tax percentage. Local tax can be assessed as a percentage of AGI or a percentage of gross income.

State tax details

RightCapital incorporates state-specific tax rates, deductions, and exemptions for all states. We also support certain state-specific rules:

Social Security

Whether or not Social Security income is subject to state taxes is determined on a state-by-state basis. States that are subject to Social Security taxes include:

CT, CO, KS, MN, MS, MT, NE, NM, ND, RI, UT, VT

Qualified Distributions

Whether or not qualified distributions are subject to state taxes is determined on a state-by-state basis. States that exclude  qualified  distributions from state tax calculations include:

IL, MS, NH, PA

For clients residing n New York, up to $20,000 in qualified distributions is deducted when calculating state income taxes.