FAQ: State and Local Tax

Frequently Asked Questions

Need assistance with settings and assumptions? RightCapital is here to help! Please use the common questions and answers below to assist you in generating financial plans. For additional assistance use the link to our support team at the bottom of the article.

1

What is the difference between state and local tax? 

Answer: Local tax, input within the “taxes and fees” card, in the expenses section would be used to model a city or municipal taxes. State tax is automatically calculated based on the residence state listed within the plan. 

2

Do I need to input sales tax?

Answer: No sales tax is not a separate input within a client’s plan, this would be factored in as part of the client’s total monthly expenses. 

3

How do I know if my client is impacted by local or municipal taxes? 

Answer: You would want to ask the client if they are paying some sort of a local city or municipal tax. If they are unaware you would want to check local law for the client’s city of residence. Local taxes are not common but they do impact clients from certain areas in the US. 

4

Can I model financial plans for Non U.S citizens? 

Answer: Yes, to remove State and Federal taxes within the financial plan, select “Non-US” as the resident state within the Profile > Family area (step 1 of the initial data entry) at the bottom of the client card.

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