Tax Planning Dashboard
Tax Bracket Sources
Tax Bracket & Source Documentation
Tax Year Used: 2025 Dashboard Build: tax-plan-dash-20260623
Federal Income Tax
| Item | Source | Reference |
|---|---|---|
| Tax brackets (Single, MFJ, MFS, HOH) | IRS Rev. Proc. 2024-40 | IRS Newsroom — TY2025 adjustments |
| Standard deductions | IRS Rev. Proc. 2024-40 | Same publication |
| Child Tax Credit ($2,000/child) | IRC §24 | Phase-out thresholds per Rev. Proc. 2024-40 |
| Self-employment tax rate (15.3%) | IRC §1401 | SS wage base $176,100 (TY2025) |
| Additional Medicare (0.9%) | IRC §3101(b)(2) | Thresholds: $200K single / $250K MFJ |
2025 Standard Deductions (implemented)
| Filing Status | Amount |
|---|---|
| Single | $15,000 |
| Married Filing Jointly | $30,000 |
| Married Filing Separately | $15,000 |
| Head of Household | $22,500 |
2025 Federal Brackets — Single (implemented)
| Taxable Income Over | But Not Over | Rate |
|---|---|---|
| $0 | $11,925 | 10% |
| $11,925 | $48,475 | 12% |
| $48,475 | $103,350 | 22% |
| $103,350 | $197,300 | 24% |
| $197,300 | $250,525 | 32% |
| $250,525 | $626,350 | 35% |
| $626,350 | — | 37% |
Full bracket tables for MFJ, MFS, and HOH are in app/lib/tax-brackets.js.
State Income Tax
California (implemented — progressive)
- Source: California Franchise Tax Board rate schedules (approximate TY2025)
- Standard deduction: Single $5,540 / MFJ $11,080 (approximate)
- Assumption: Full progressive bracket schedule implemented for CA. Does not include Mental Health Services Tax (1% over $1M) separately.
- Verify: FTB Publication 1001
New York (simplified model)
- Implementation: Flat 6.85% effective rate on state taxable income after NY standard deduction
- Not modeled: NYC local tax, Yonkers surcharge, progressive NY bracket detail, PTET
- Assumption clearly shown in dashboard trace
No State Income Tax
Texas, Florida, Washington, Nevada — state tax = $0
Strategy Module Assumptions
| Strategy | Code Reference | Modeling Approach |
|---|---|---|
| Augusta Rule | IRC §280A(g) | Excludes rental income from AGI (income reduction) |
| Pay Children | IRC §3121(b)(3)(A) | Business deduction + optional FICA exemption savings |
| S-Corp Salary | IRC §1402 | SE tax on distributions avoided (simplified) |
| Retirement | IRC §401(k), §408 | Pre-tax deduction at marginal rates |
| Accountable Plan | IRC §62(a)(2)(A) | Business deduction for reimbursed expenses |
| Health / HSA | IRC §162(l), §223 | Above-the-line deduction savings |
Traceability
Every dashboard calculation exposes a Calculation Trace on the Tax Position view showing:
- Net business income
- W-2 wages
- Deduction line items
- Standard deduction applied
- SE net earnings
- State tax modeling notes
Strategy cards show per-strategy assumptions and risk/documentation notes.
Update Procedure
When IRS publishes new bracket data (typically October/November each year):
- Update
app/lib/tax-brackets.jswith new thresholds - Update this document and
assumptions.json - Re-run
scripts/run-verification.mjs - Issue new release with updated
verification-report.json