<topic sku="dlxbiz" tNum="287981" author="leighanw" xmlns="x-schema:hhTopicSchema.xml"><index><title>Override Money's calculated effective tax rate and enter your own in your lifetime plan</title><category>lifeplan</category><klink type="prcdr">How do I enter my own effective tax rate in my lifetime plan?</klink></index>
<content>
<extend>
<tease>Why?</tease>
<reveal>
<p>Money calculates an <glossary tNum="286989">effective income tax rate</glossary> for you based on the state in which you live. If you know that you are paying significantly higher or lower than the average for your state (perhaps by looking at your most recent tax return), you might want to enter a different effective income tax rate.</p>
</reveal>
</extend>
<ol>
<li>On the <emph>Planner</emph> menu, click <emph>Lifetime Planner</emph>.</li>
<li>In the left pane, click <emph>Taxes & Inflation</emph>.</li>
<li>Click <emph>Adjust the effective tax rate myself</emph>.</li>
<li>Enter the tax rate you want to use.</li>
</ol>
</content>
<footer>
<extend>
<tease>When I enter my own effective tax rate, what else does it affect in Money?</tease>
<reveal>
<p>Money uses the custom tax rate you enter for all tax-related activities throughout your lifetime plan.</p>
</reveal>
</extend>
<extend>
<tease>If I adjust my tax rate for this year, does Money use this same rate for each future year in my plan?</tease>
<reveal>
<p>No. Money applies the difference between the rate you enter and the rate it calculates for each future year. For example, if Money calculates a rate of 10% and you type 12%, Money will calculate a rate for each future year in your plan and will add 2% (the difference between 10% and 12%) to each year's calculated rate.</p>
