Version 22.09 (2021/2022/2023)- State tax parameters updated for 2023
- Default year for federal taxes changed to 2023
- Help with future marginal rate estimates, when considering qualified dividends, pension, Social Security, and traditional withdrawals
- Allow loss carryforward in the QBI deduction calculation

Thanks to the Tax Foundation's

State Individual Income Tax Rates and Brackets for 2023, those values will be used for state tax estimates. If there are some easily added features for your state's taxes, or if the Tax Foundation numbers are incorrect, comments in the

State Income Tax calculations - Crowdsourcing request thread are welcome.

Assuming that by now most people are using commercial tax software for their 2022 returns, the default year in Calculations!R2 is now 2023. That can be changed if one wants to look at a different year's federal taxes.

When dealing with traditional vs. Roth contributions, or the timing/amount of traditional to Roth conversions, a comparison of current vs. future marginal tax rates is needed. Current rates can be calculated exactly (that's the main feature of the CSS), but any estimate of future rates is subject to the vagaries of tax law, market returns, and individual circumstances. See

Estimating withdrawal tax rates for more discussion on that.

Although great detail in a future tax estimate isn't justified, some back-of-the-envelope calculations can be worthwhile. That's what the "Estimating withdrawal tax rates" section that has been around cell Calculations!R60 since

March 03, 2021 is for. To make it clearer how to use this (I hope, although the potential for confusion also exists), formulas that reference those estimated cells have been added to the inputs for qualified dividends, pension, Social Security, and "other taxable income". All these formulas (see cells D25, B32, B38, and D40 on the Calculations tab) are of the form =Rxx*0. The "*0" must be deleted if one wants to use the future estimates. For current year estimates, one can simply type numbers into those cells or add a number after the "*0". For example, if one wants to enter $1287 for current year qualified dividends, cell D25 could have =R66*0+1287.

The future "other taxable income" entry is the annual traditional withdrawal one expects based on the growth of the current traditional balance. Then the marginal rate chart that uses cell

~~D31~~ [B31 since the

November 07, 2023 update] for the x-axis shows the marginal rates that additional traditional contributions will encounter when they and their gains are withdrawn.

As always, comments/suggestions/bug identifications/etc. are appreciated. Either PM me or drop a note here.

2021/2022/2023 taxes version:

Case Study Spreadsheet**Note:**