Understanding the Tax Detail Report

The Federal Tax Detail report can be found in the Spending Overview report. This worksheet can help you to understand how AGI and calculated and how Net Tax is derived.

What follows are notes or explanations for each of the columns in this report.

Earned Income
This is the labor income from the Non-Asset Income report(s). This income is shown in current-year real dollars just as it appears in your other reports.

Capital Gains Income and Nominal Asset Income
These amounts are derived from your settings in Settings > Taxes. (see here)
The amounts here are the real value of the capital gain or nominal asset return. Note that here you are seeing the real value of the *nominal* return as opposed to the *real* return that is shown in the Income Overview report.

Adjustments to Income
Adjustments include pre-tax contributions to retirement accounts.

Adjusted Gross Income
The AGI includes the real value of the total nominal return on regular assets, earned income, and adjustments. Note that it includes the nominal return, not the real return, since you are taxed on total nominal return.

For example, if you had $10,000 in regular assets, a nominal rate of return of 6%, and inflation of 4%, then your total nominal return that is included in AGI will be $600. But since you live on real return, only $192 will be included in Total Income report in the Regular Asset Income column.

All numbers in all reports are in real, current-year dollars.

AGI includes these calculations:

labor income +
taxable pensions +
taxable retirement account distributions +
taxable annuities +
taxable special receipts -
special expenditures excludable from AGI +
real estate gain or limited loss +
special receipts taxable as capital gains +
taxable asset income +
realized capital gains +
taxable social security +
taxable housing capital gains +
real estate capital gains -
deductible part of self-employment tax.