You use the Federal Tax Table Worksheet to define the income brackets and rates for federal income tax. You select the worksheet from the Setup folder. For most situations, the default settings are appropriate.
Please Note: Enter zeros in any rows in the tax table that are not used or calculation errors will occur.
The tax table is used to calculate taxes on after-tax economic benefit streams.
By default, the tax table is automatically applied to the adjusted financial statements. For more information, see Adjusting the Income Taxes Account.
You can change the tax table so it reflects the effective rates as of the valuation date.
To apply a flat rate, set the first bracket so that it will encompass the firm's highest income, and set the remaining brackets to zeros.