An option exists to include or exclude taxes. Taxes are treated as separate adjustments to Lost or Impaired Earnings. They can be calculated and applied in any of three ways.

• The extended profile can include an amount for taxes, and use that to calculate a rate to be applied to future compensation.
• Up to three years of Federal, state and local tax payments can be used to calculate and sum to an overall rate to be applied to future compensation.
• Rates can be calculated using statutory rates applicable to specified percentages of compensation. The resulting rate can be either simple or pooled. (Lower level taxes are normally deducted before calculating higher level taxes, when pooled is employed.)