Wealth management firm Eaton Vance has introduced an investment tax calculator aimed at helping US individual taxpayers and their advisers make smarter decisions “by better understanding the investment taxes they pay”.
The tool is available to the general public and is based on users’ income level, tax filing status and place of residence.
The calculator then determines the combined total tax rate – including federal, state and local taxes – that applies to an incremental dollar of the investor’s ordinary investment income.
It also assesses in-state and out-of-state municipal bond and US Treasury interest income, qualified dividend income, net realised long-term and short-term capital gains, and qualified retirement plan withdrawals.
In addition, the calculator includes tools enabling investors and advisers to compare the after-tax income of different types of fixed income investments and to evaluate the tax consequences of selling concentrated stock positions, taking into account the investor’s individual tax circumstances.
“Our engagement with investors and financial advisers constantly reinforces the message that they need more information and better tools to help manage investment tax effects,” said Thomas Faust Jr, chairman and chief executive of Eaton Vance.
