State taxes added to simulation
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@ -2,17 +2,12 @@ import moment from 'moment';
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/**
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* Single-filer federal tax calculation (2023).
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* Includes standard deduction ($13,850).
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* If you need to update the brackets/deduction, edit here.
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* Includes standard deduction ($13,850).
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*/
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function calculateAnnualFederalTaxSingle(annualIncome) {
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// 1. Subtract standard deduction
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const STANDARD_DEDUCTION_SINGLE = 13850;
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const taxableIncome = Math.max(0, annualIncome - STANDARD_DEDUCTION_SINGLE);
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// 2. Define bracket thresholds & rates for single filers (2023)
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// The 'limit' is the upper bound for that bracket segment.
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// Use Infinity for the top bracket.
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const brackets = [
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{ limit: 11000, rate: 0.10 },
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{ limit: 44725, rate: 0.12 },
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@ -26,23 +21,37 @@ function calculateAnnualFederalTaxSingle(annualIncome) {
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let tax = 0;
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let lastLimit = 0;
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// 3. Accumulate tax across brackets
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for (let i = 0; i < brackets.length; i++) {
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const { limit, rate } = brackets[i];
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if (taxableIncome <= limit) {
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// only tax the portion within this bracket
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tax += (taxableIncome - lastLimit) * rate;
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break;
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} else {
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// tax the entire bracket range, then continue
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tax += (limit - lastLimit) * rate;
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lastLimit = limit;
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}
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}
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return tax;
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}
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/**
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* Example state tax calculation.
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* Currently a simple flat rate based on `stateCode` from a small dictionary.
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* You can replace with bracket-based logic if desired.
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*/
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function calculateAnnualStateTax(annualIncome, stateCode) {
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// Example dictionary of flat rates (not real data!)
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const stateTaxInfo = {
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CA: 0.08, // 8%
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NY: 0.06, // 6%
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TX: 0.00,
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FL: 0.00,
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GA: 0.05
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};
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const rate = stateTaxInfo[stateCode] ?? 0.05; // default 5% if not found
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return annualIncome * rate;
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}
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/**
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* Calculate the standard monthly loan payment for principal, annualRate (%) and term (years).
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*/
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@ -53,7 +62,6 @@ function calculateLoanPayment(principal, annualRate, years) {
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const numPayments = years * 12;
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if (monthlyRate === 0) {
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// no interest
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return principal / numPayments;
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}
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return (
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@ -63,7 +71,7 @@ function calculateLoanPayment(principal, annualRate, years) {
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}
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/**
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* Main projection function with bracket-based tax logic for single filers.
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* Main projection function with bracket-based FEDERAL + optional STATE tax logic.
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*/
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export function simulateFinancialProjection(userProfile) {
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const {
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@ -85,9 +93,9 @@ export function simulateFinancialProjection(userProfile) {
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programType,
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hoursCompleted = 0,
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creditHoursPerYear,
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calculatedTuition,
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gradDate,
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startDate,
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calculatedTuition,
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gradDate,
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startDate,
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academicCalendar = 'monthly',
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annualFinancialAid = 0,
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@ -107,10 +115,13 @@ export function simulateFinancialProjection(userProfile) {
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surplusRetirementAllocation = 50,
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// Potential override
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programLength
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programLength,
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// NEW: user’s state code (e.g. 'CA', 'NY', 'TX', etc.)
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stateCode = 'TX', // default to TX (no state income tax)
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} = userProfile;
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// 1. Calculate standard monthly loan payment (if not deferring)
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// 1. Monthly loan payment if not deferring
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let monthlyLoanPayment = loanDeferralUntilGraduation
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? 0
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: calculateLoanPayment(studentLoanAmount, interestRate, loanTerm);
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@ -137,17 +148,16 @@ export function simulateFinancialProjection(userProfile) {
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const dynamicProgramLength = Math.ceil(remainingCreditHours / creditHoursPerYear);
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const finalProgramLength = programLength || dynamicProgramLength;
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// 3. Net annual tuition after financial aid
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// 3. Net annual tuition after aid
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const netAnnualTuition = Math.max(0, calculatedTuition - annualFinancialAid);
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const totalTuitionCost = netAnnualTuition * finalProgramLength;
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// 4. Setup lumps per year based on academicCalendar
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let lumpsPerYear = 12; // monthly fallback
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let lumpsSchedule = [];
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// 4. Setup lumps per year
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let lumpsPerYear, lumpsSchedule;
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switch (academicCalendar) {
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case 'semester':
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lumpsPerYear = 2;
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lumpsSchedule = [0, 6];
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lumpsSchedule = [0, 6];
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break;
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case 'quarter':
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lumpsPerYear = 4;
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@ -160,41 +170,39 @@ export function simulateFinancialProjection(userProfile) {
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case 'monthly':
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default:
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lumpsPerYear = 12;
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lumpsSchedule = [...Array(12).keys()]; // 0..11
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lumpsSchedule = [...Array(12).keys()];
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break;
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}
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const totalAcademicMonths = finalProgramLength * 12;
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const lumpAmount = totalTuitionCost / (lumpsPerYear * finalProgramLength);
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// 5. Simulation loop up to 20 years
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// 5. Simulation loop
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const maxMonths = 240;
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let date = startDate ? new Date(startDate) : new Date();
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let loanBalance = Math.max(studentLoanAmount, 0);
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let loanPaidOffMonth = null;
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let currentEmergencySavings = emergencySavings;
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let currentRetirementSavings = retirementSavings;
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let projectionData = [];
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let wasInDeferral = inCollege && loanDeferralUntilGraduation;
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// If gradDate is provided, parse it to Date
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const graduationDate = gradDate ? new Date(gradDate) : null;
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// Keep a map of year => { ytdGross, ytdTaxSoFar } for bracket-based taxes
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// YTD tracking for each year (federal + state)
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// e.g. taxStateByYear[2025] = { federalYtdGross, federalYtdTaxSoFar, stateYtdGross, stateYtdTaxSoFar }
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const taxStateByYear = {};
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for (let month = 0; month < maxMonths; month++) {
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date.setMonth(date.getMonth() + 1);
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const currentYear = date.getFullYear();
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// If loan is fully paid, record if not already done
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// Check if loan is fully paid
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if (loanBalance <= 0 && !loanPaidOffMonth) {
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loanPaidOffMonth = `${currentYear}-${String(date.getMonth() + 1).padStart(2, '0')}`;
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}
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// Determine if user is still in college (trusted gradDate or approximate)
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// Are we still in college?
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let stillInCollege = false;
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if (inCollege) {
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if (graduationDate) {
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@ -208,7 +216,7 @@ export function simulateFinancialProjection(userProfile) {
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}
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}
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// 6. Check if we owe tuition lumps this month
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// 6. Tuition lumps
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let tuitionCostThisMonth = 0;
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if (stillInCollege && lumpsPerYear > 0) {
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const simStart = startDate ? new Date(startDate) : new Date();
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@ -224,71 +232,79 @@ export function simulateFinancialProjection(userProfile) {
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}
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}
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// 7. Detect if we are now exiting college this month
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// 7. Exiting college?
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const nowExitingCollege = (wasInDeferral && !stillInCollege);
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// 8. If in deferral, lumps get added to the loan principal
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// 8. Deferral lumps get added to loan
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if (stillInCollege && loanDeferralUntilGraduation) {
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if (tuitionCostThisMonth > 0) {
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loanBalance += tuitionCostThisMonth;
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tuitionCostThisMonth = 0;
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tuitionCostThisMonth = 0;
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}
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}
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// 9. Gross monthly income depends on college status
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// 9. Gross monthly income
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let grossMonthlyIncome = 0;
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if (!inCollege || !stillInCollege) {
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// Graduated or never was in college => use expectedSalary if given
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grossMonthlyIncome = (expectedSalary > 0 ? expectedSalary : currentSalary) / 12;
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} else {
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// Still in college => currentSalary + part-time
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grossMonthlyIncome = (currentSalary / 12) + (partTimeIncome / 12);
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}
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/**
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* 10. Calculate monthly TAX via bracket-based approach:
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* We track year-to-date (YTD) for the current calendar year.
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*/
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// 10. Tax calculations
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if (!taxStateByYear[currentYear]) {
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taxStateByYear[currentYear] = { ytdGross: 0, ytdTaxSoFar: 0 };
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taxStateByYear[currentYear] = {
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federalYtdGross: 0,
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federalYtdTaxSoFar: 0,
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stateYtdGross: 0,
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stateYtdTaxSoFar: 0
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};
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}
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// Add this month’s gross to YTD
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taxStateByYear[currentYear].ytdGross += grossMonthlyIncome;
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// Update YTD gross for federal + state
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taxStateByYear[currentYear].federalYtdGross += grossMonthlyIncome;
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taxStateByYear[currentYear].stateYtdGross += grossMonthlyIncome;
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// Calculate total tax for YTD
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const annualTaxSoFar = calculateAnnualFederalTaxSingle(
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taxStateByYear[currentYear].ytdGross
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// Compute total fed tax for the year so far
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const newFedTaxTotal = calculateAnnualFederalTaxSingle(
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taxStateByYear[currentYear].federalYtdGross
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);
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// Monthly fed tax = difference
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const monthlyFederalTax = newFedTaxTotal - taxStateByYear[currentYear].federalYtdTaxSoFar;
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taxStateByYear[currentYear].federalYtdTaxSoFar = newFedTaxTotal;
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// This month’s tax = (new YTD tax) - (old YTD tax)
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const monthlyTax = annualTaxSoFar - taxStateByYear[currentYear].ytdTaxSoFar;
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// Compute total state tax for the year so far
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const newStateTaxTotal = calculateAnnualStateTax(
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taxStateByYear[currentYear].stateYtdGross,
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stateCode
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);
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const monthlyStateTax = newStateTaxTotal - taxStateByYear[currentYear].stateYtdTaxSoFar;
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taxStateByYear[currentYear].stateYtdTaxSoFar = newStateTaxTotal;
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// Update YTD tax
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taxStateByYear[currentYear].ytdTaxSoFar = annualTaxSoFar;
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// Combined monthly tax
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const combinedTax = monthlyFederalTax + monthlyStateTax;
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// Net monthly income after tax
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const netMonthlyIncome = grossMonthlyIncome - monthlyTax;
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// Net monthly income after taxes
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const netMonthlyIncome = grossMonthlyIncome - combinedTax;
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// 11. Monthly expenses (excluding student loan if deferring)
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// 11. Expenses & loan
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let thisMonthLoanPayment = 0;
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let totalMonthlyExpenses = monthlyExpenses + monthlyDebtPayments + tuitionCostThisMonth;
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// Re-amortize if we're just now exiting college
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// Re-amortize if just exited college
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if (nowExitingCollege) {
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monthlyLoanPayment = calculateLoanPayment(
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loanBalance,
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interestRate,
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10 // fresh 10-year term post-college
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10
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);
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}
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// 12. If still deferring, just accrue interest
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// If not deferring, we do normal payments
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if (stillInCollege && loanDeferralUntilGraduation) {
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const interestForMonth = loanBalance * (interestRate / 100 / 12);
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loanBalance += interestForMonth;
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} else {
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// Normal repayment if loan > 0
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if (loanBalance > 0) {
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const interestForMonth = loanBalance * (interestRate / 100 / 12);
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const principalForMonth = Math.min(
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@ -303,11 +319,11 @@ export function simulateFinancialProjection(userProfile) {
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}
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}
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// 13. leftover after mandatory expenses
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// 12. leftover after mandatory expenses
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let leftover = netMonthlyIncome - totalMonthlyExpenses;
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if (leftover < 0) leftover = 0;
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// Baseline monthly contributions
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// Baseline contributions
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const baselineContributions = monthlyRetirementContribution + monthlyEmergencyContribution;
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let effectiveRetirementContribution = 0;
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let effectiveEmergencyContribution = 0;
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@ -317,48 +333,44 @@ export function simulateFinancialProjection(userProfile) {
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effectiveEmergencyContribution = monthlyEmergencyContribution;
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leftover -= baselineContributions;
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} else {
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// Not enough leftover => zero out contributions
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effectiveRetirementContribution = 0;
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effectiveEmergencyContribution = 0;
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}
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// Check for shortfall vs. mandatory expenses
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// Check shortfall
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const totalWantedContributions = effectiveRetirementContribution + effectiveEmergencyContribution;
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const actualExpensesPaid = totalMonthlyExpenses + totalWantedContributions;
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let shortfall = actualExpensesPaid - netMonthlyIncome;
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if (shortfall > 0) {
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// Attempt to cover from emergency savings
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const canCover = Math.min(shortfall, currentEmergencySavings);
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currentEmergencySavings -= canCover;
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shortfall -= canCover;
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if (shortfall > 0) {
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// Even after emergency, we can't cover => break (bankrupt scenario)
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// bankrupt scenario
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break;
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}
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}
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// 14. Surplus allocation if leftover > 0
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const newLeftover = leftover;
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if (newLeftover > 0) {
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// Allocate by percentage
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// 13. Surplus
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if (leftover > 0) {
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const totalPct = surplusEmergencyAllocation + surplusRetirementAllocation;
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const emergencyPortion = newLeftover * (surplusEmergencyAllocation / totalPct);
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const retirementPortion = newLeftover * (surplusRetirementAllocation / totalPct);
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const emergencyPortion = leftover * (surplusEmergencyAllocation / totalPct);
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const retirementPortion = leftover * (surplusRetirementAllocation / totalPct);
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currentEmergencySavings += emergencyPortion;
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currentRetirementSavings += retirementPortion;
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}
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// 15. netSavings for the month (could be leftover minus contributions, etc.)
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// But we already subtracted everything from netMonthlyIncome except what ended up surplus
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// netSavings for display
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const finalExpensesPaid = totalMonthlyExpenses + totalWantedContributions;
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const netSavings = netMonthlyIncome - finalExpensesPaid;
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// Record in the projection data
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projectionData.push({
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month: `${date.getFullYear()}-${String(date.getMonth() + 1).padStart(2, '0')}`,
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grossMonthlyIncome: Math.round(grossMonthlyIncome * 100) / 100,
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monthlyTax: Math.round(monthlyTax * 100) / 100,
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monthlyFederalTax: Math.round(monthlyFederalTax * 100) / 100,
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monthlyStateTax: Math.round(monthlyStateTax * 100) / 100,
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combinedTax: Math.round(combinedTax * 100) / 100,
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netMonthlyIncome: Math.round(netMonthlyIncome * 100) / 100,
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totalExpenses: Math.round(finalExpensesPaid * 100) / 100,
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effectiveRetirementContribution: Math.round(effectiveRetirementContribution * 100) / 100,
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@ -370,11 +382,9 @@ export function simulateFinancialProjection(userProfile) {
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loanPaymentThisMonth: Math.round(thisMonthLoanPayment * 100) / 100
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});
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// Update deferral flag for next iteration
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wasInDeferral = (stillInCollege && loanDeferralUntilGraduation);
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}
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// Return the final output
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return {
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projectionData,
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loanPaidOffMonth,
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