                            TAX CALCULATION

    The tax calculation/projection features of PHASAR are contained the
program called PHTAX.

    PHASAR can compute a tax liability using the information contained in the
category sums. Since there is the ability to establish budget amounts for each
category for each month, PHASAR can use the budgeted category sums for the
months where actual data is not yet available to do a mid-year tax projection.

    For the program to know which incomes and expenses affect taxes, you must
keep categories which contain taxable items separate from non-taxable items. 

    In general, any tax schedule or form or table can be easily entered.
PHASAR will then plug actual (or budget) numbers in by income or expense
category to arrive at a projected or actual tax liability. PHASAR also allows
you to modify or create tax tables to customize the program for your use or to
update it as the tax rates change.

    After defining a new form or making changes to the calculations contained in
a pre-defined form it is recommended that you "Validate" the tax file. This
will guarantee that there are no loose ends in any of the inter-cell
references.

	Normally, all changes and additions to the tax file are saved when you quit
PHTAX. Because of this you do not have to explicitly save the tax file but you
must be sure that you quit the program and wait for all disk activity to finish
before turning off the computer. Doing an explicit "save tax file" is a safety
measure in case you forget to quit the program before turning off the computer
or in case the computer crashes while you are in PHTAX. It's a good idea to use
this selection occasionaly if you are making extensive changes to the tax file.

    If you want to do tax calculations using different scenarios you can make a
copy of the PHASAR.TAX data file with a different name. Modify this new copy
to calculate your tax liability another way and compare the outcome with the 
original approach to find the most favorable. You may also define several 
scenarios in the same tax file for more direct comparison. The disadvantage to
having one large file is that is will take longer to read it in and to re-
calculate new results when you change something. If you do want to define
several different scenarios in one file the "Clone Tax Form" function will
come in handy.

    A word of CAUTION is probably appropriate here. The program does not have
any ability to judge whether the tax setup you specify is reasonable. You need
to use plenty of "common sense" and care to set up a realistic tax calculation.
