Table T1 above shows each of the individual cashflow payments that will be made by xx annuity. Each payment shows:
This section allows you to enter the Annuity, Cash, Yield and Ratio values in the column labeled 'Value'. These are shown in green. In addition, you can select your Federal Tax filing status and State of residence.
? Detailed Help for Table T2
This Tax Summary table shows you how much money you will receive and pay, depending on whether you opt to take the Cash or Annuity payouts. These are shown in the Gross & Net rows.
? Table T3 Detailed Help
This section allows you to enter the Annuity, Cash, Yield and Ratio values in the column labeled 'Value'. These are shown in green. Typically, you would enter both the Annuity and Cash values (since these are given), and then the Yield and Ratio values are calculated accordingly.
However, to make it easier to use, you can select any parameter to hold as a constant ('Hold' column). For example, if you change the Annuity hold value to Ratio, then that value will remain constant whenever you change the Annuity value (and so on).
Taxes are calculated using the 2014 Federal and State Tax Tables, which means that the amounts of tax due will vary depending on the amount of payment you receive.
You may change your filing status from 'Joint' to 'Single' (row 4), which will determine both your Federal and State Tax amounts.
Lastly, you can change your State using the pulldown in row 5.
The Tax Summary table shows you how much money you will receive and pay, depending on whether you opt to take the Cash or Annuity payouts. The values displayed under the first 2 columns are:
The last three rows '%FedTax', '%StateTax', '%TotalTax', indicate your effective tax rates for each of these categories.
Note that whenever you change the Federal filing status or State (Table T2), all values (except Gross) will change accordingly.
Lastly, the 'Diff' column shows the difference (Annuity - Cash) values; and the 'Pct' column shows the Cash / Annuity ratio.