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New AZ Surtax on high earners - how to enter into PRC

 

NC Cpl
(@nc-cpl)
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Trying to figure out how to factor this into PRC. I entered the % increase on the HOME page, starting in 2021...BUT, how to get it to readjust to the lower rate once income drops below the income threshold of either $250k or $500k?

In Arizona, starting in 2021, voters approved a 3.5% tax surcharge on high-income taxpayers on top of the current top rate of 4.5%, bringing its new top rate to 8%. Who is high income for purposes of the new tax? Individuals with income above $250,000, and joint filers with income above $500,000.

The 4.5% rate applies to income above $159,000 for individuals or $318,000 for joint filers.

This topic was modified 2 weeks ago by NC Cpl

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Stuart Matthews
(@smatthews51)
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Joined: 9 months ago
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I don't see any way to model this under the current design. I've made a note of this issue and, as a minimum, will fix it in the 2022 model but may possibly fix it in a later mod of the 2021 model.


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NC Cpl
(@nc-cpl)
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Topic starter  

@smatthews51

AZ currently has a four tier tax structure. Wouldn't this just be adding a fifth tier? (see attachment).


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Stuart Matthews
(@smatthews51)
MemberAdmin
Joined: 9 months ago
Posts: 146
 

Yes, that's what would be required to address this issue. What I meant by "I don't see any way to model this under the current design" was that I don't know of a way for YOU to model this with the currently-released version of PRC2021.


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NC Cpl
(@nc-cpl)
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OK, thanks for confirming that.


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