The program will treat the Front Page monthly income figure as all earned
income, which means that FICA and Medicare taxes are calculated on all of this income. If some of the income is unearned (dividends, interest, etc.), then the Income
Page should be used so that the unearned income escapes the FICA/Medicare taxes.
All of the income entered on the Front Page is treated as taxable income. The
Income Page allows you to enter nontaxable income.
If a party has adjustments to income that reduce that party's Adjusted Gross
Income and consequently the Taxable Income (alimony paid from prior marriage,
IRA contributions, etc.), the Income Page should be used so that those reductions to
income that is taxed can be protected.
If you wish to enter the monthly income figure on the Front Page, the checkbox labeled "Enter Monthly Amount Here" needs to be checked, and the program will then ignore the Income Page. If the box is unchecked, either use your mouse/touchpad to click the checkbox, or use the TAB key to move to that box and then use the SPACEBAR to check it. The computer will automatically convert the monthly amount on the Front Page to an annual amount and fill in the next line for you.
If you want to use the Income Page to itemize the income items, either "uncheck" the checkbox on the Front Page or click the Income Page button or use the menu at the top (Pages > Income Page) or Ctrl-I. If you uncheck the checkbox, the Income Page button will turn green so that your attention is called to it.
The Income Page Will Override The Income on the Front Page: When you click the CALCULATE button (the one with the blue cash register icon) on the Income Page, the amounts on the Income Page will be totaled and automatically carried over to the Front Page and will override whatever income figures were on the Front Page.
Use annual pre-tax income figures on the Income Page. When you click CALCULATE and the sum is carried over to the Front Page, the computer will automatically enter the monthly amount of the Front Page, as well.
Simply enter the number of exemptions that the party will be entitled to claim on his/her tax return. Be sure to include the party himself/herself.
A small red box with a white "?" that pops up by the exemptions after you click CALCULATE means that the program has detected a possible error in your exemptions.
If a party is filing jointly, then (s)he must have at least 2 exemptions.
If a party is filing as head-of-household, (s)he will probably have at least 2
exemptions, but not necessarily.