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When would I change my tax level?
To determine your tax level, we use your self-reported tax filing status, household income, and state of residence and apply the standard deduction. If you believe you should be in a different tax level, you can edit your portfolio or change your tax level at any time. Some reasons you may want to change your tax level include:
- You itemize large deductions
- You earn significant income in multiple states
- You file taxes in a state that’s different than your residential address
- Your tax situation differs for any other reason
You can determine which portfolio tax level is best for you by reviewing the tax grids in our white paper. Or, while you are manually editing your tax level, you can compare your taxable income to the after-deduction income ranges listed in each portfolio tax level. (Taxable income is adjusted gross income minus deductions, and can be found in form 1040.)
Learn how to change your tax level.
Wealthfront Advisers and its affiliates do not provide legal or tax advice and do not assume any liability for the tax consequences of any client transaction. Clients should consult with their personal tax advisors regarding the tax consequences of investing with Wealthfront Advisers and engaging in these tax strategies, based on their particular circumstances.
The information contained in this communication is provided for general informational purposes only, and should not be construed as investment or tax advice. Nothing in this communication should be construed as a solicitation, offer or recommendation to buy or sell any security. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Please see our Full Disclosure for important details.
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