State Taxes in Holistiplan

What can Holistiplan do with state taxes?

All Holistiplan users have access to State Tax Hints on the Tax Report to help identify state-specific tax items. To enable these hints, indicate the client's state of residence in the household screen.

Can I create state tax projections in Scenario Analysis?

With the State Tax Modeling feature, advisors can go beyond state tax hints to model the tax implications at the federal and state levels.

How do I enroll in the state tax modeling feature?

Firm Administrators can access the link in the "State Tax Modeling" section within Scenario Analysis as shown below. Once there, they can enable the state tax modeling add-on feature for all users in the firm.

How does it work?

 The video below discusses how to model state taxes in Scenario Analysis (and even compare if a client moves from one state to another), followed by a written description. 

After a Firm Admin has enabled the state tax modeling feature, users will see a new section in Scenario Analysis right after the "Refundable Tax Credits" section and just before the "MAGI" section.

As a reminder, Holistiplan does not read in state tax returns. Accordingly, the state tax section for any scenario reflecting an uploaded return will be blank, as there is no information to populate that section. Users will see language indicating that state tax modeling is not available for uploads, along with a corresponding tool tip.

To begin projecting state taxes, select the desired state using the dropdown box outlined in red below, then click the "Add State Scenario" button outlined in blue. The "Add State Scenario" button will be present only on editable scenarios within Scenario Analysis. 

While Holistiplan will pull certain figures from the Federal Tax portion of Scenario Analysis, we are unable to fully populate every row in the State Tax Modeling section due to incomplete information from the federal side. Users will likely need to make some manual adjustments to account for state-specific state  tax provisions that cannot currently be automatically calculated. All states are different, so some states will have more manual adjustments than others.

For example, many states begin with Federal AGI as a starting point, while others start with a state-specific income number that must be manually constructed. The tool tip icons throughout the State Tax Modeling section may be helpful reminders of what various adjustments may be made for each state on each particular line item.

It may be helpful to review information on various states by clicking the "Open State Tax Modeling informational page" link below, which will list all states and an outline of the flow of each state's tax calculation. Georgia's page is shown below as an example.

As with the Federal tax calculation, users can click the calculator icon for the State Tax Modeling section to see more details on each state tax calculation, which will mimic the flow of calculation on each state's income tax return form. 

If the State Tax Modeling section is enabled, the Withholding section will include a "State Tax Withholding Calculator" beneath the existing "Federal Tax Withholding Calculator". State withholding will be greyed out for the scenario with the read-in return; however, in editable scenarios where a state scenario has been added, users can enter any state tax withholding information.



While Holistiplan does not currently support directly modeling multiple state residences, we do have a workaround, as described in this article. 

If you have any questions along the way, please Contact our Support Team for assistance.