Covisum Blog

The makers of the patented Social Security Timing® software have developed software for advisors to quickly and easily illustrate that what taxpayers think about how they’re taxed is quite different from reality. Today’s federal tax system has evolved beyond the simple progressive, or “stair step,” system in taxpayers’ minds. The new Tax Clarity™ illustrates in an easy-to-understand Tax Map graphic that shows how each additional dollar of income is lost in reality. In some cases, this effective marginal rate can be 55.5%, meaning for each dollar of additional income, more than half will be lost in income taxes.

Last week, the makers of Social Security Timing® released another innovative software program for financial advisors to help their clients with their retirement planning decisions. Tax Clarity® is the first program that unveils the hidden marginal income tax rates that can cause significant financial damage to a retiree’s cash flow.