What is Included in the 1040 Income Section of Scenario Analysis?

This section details wages, interest, dividends, IRA distributions, pension/annuity payments, and Social Security.

Certain boxes will have a pencil icon that, when clicked, will allow you to provide more detailed information: 

• Wages - clicking the icon will bring up a worksheet where you can list either the combined wage amount for a married couple or break out the specific amount of wages for each taxpayer (including by different types of what is ultimately considered wage income). As a best practice, you will always want to enter all income items per taxpayer instead of using the "override" field. Similarly, if you know the amount of Medicare wages (which may very well be different than the amount of taxable wages due to certain workplace deferrals), you can enter that information here. This will impact the calculation for the Additional Medicare Tax that’s reported on Form 8960. Further instructions on the Wages Worksheet can be found here. 

• Taxable Interest/Total Dividends - clicking the icon in either of these boxes will bring up the Investment Income worksheet, which is used to estimate any Net Investment Income Tax (NIIT). Any changes you make on this worksheet will save automatically as you type.

• IRA Distributions and Taxable Pension and Annuities - clicking the icon in either of these boxes will bring up a worksheet to enter the taxable distribution for the taxpayer. Greater detail on using this worksheet can be found in our article on modeling retirement plan distributions.
• Gross Social Security - enter the gross Social Security benefit each taxpayer receives. Holistiplan will automatically calculate the taxable percentage.
  
  

As always, if you have any questions along the way, Contact Support for assistance.