Sample Report: Tax Projections Scenario Comparison

Where the full Tax Projections report provides detailed line-by-line data across all income and deduction categories, the Scenario Comparison distils the picture into two key charts and a concise key data table, making it ideal for client-facing presentations.

This sample report for Henry D. & Mary Price compares four scenarios: the 2024 actual tax return, 2025 projection, a 2028 scenario (a custom year modelling a higher-income event), and the 2027 projection. Use this article to understand what each element of the report shows and how to interpret it for a client conversation.

[DOWNLOAD SAMPLE SCENARIO COMPARISON REPORT PDF]

3-page sample report for Henry D. & Mary Price — includes bracket/threshold bar charts and key data summary table

Report Type: Scenario Comparison | Pages: 12 | Scenarios Compared: 4 (2024-2028)

What the Scenario Comparison Report Shows

The report contains three elements: two side-by-side stacked bar charts on page 1, and a key data summary table on page 2. Together they show how income composition, tax burden, and effective rates shift across the scenarios.

Report Element	What It Shows
Federal Income Tax Bracket Chart	Stacked bar chart showing ordinary income (dark blue), LTCG/QD (mid blue), federal taxes (amber), and state taxes (light amber) for each scenario. Bracket thresholds are marked on the right axis, making it easy to see which bracket each scenario lands in.
LTCG & Qualified Dividends Chart	A parallel chart using the same stacking format but oriented around the LTCG/QD rate thresholds (0%, 15%, 20%). Shows whether capital gains are taxed at 15% or push into the 20% tier. At $726,893 AGI in 2028, the effective LTCG rate rises to 17% due to the NIIT surcharge.
Key Data Table	A concise six-row summary comparing effective federal rate, effective LTCG rate, AGI, taxable income, total federal tax, long-term capital gains, and state tax across all four scenarios.

Reading the Federal Income Tax Bracket Chart

The left chart on page 1 is the primary visual. Each bar represents one scenario, stacked from bottom to top as: ordinary income (dark navy), long-term capital gains and qualified dividends (mid blue), federal taxes owed (amber), and state taxes (light amber). The horizontal lines on the right axis mark the 2028 federal bracket thresholds.

2028 Bracket Threshold	Ordinary Income Rate	Position in Sample
$0 – $26,844	10%	Below all scenarios
$26,844 – $109,109	12%	Below all scenarios
$109,109 – $228,826	22%	2024 return falls here
$228,826 – $436,815	24%	2024 taxable income: $251K
$436,815 – $554,692	32%	2025 and 2027 fall here
$554,692 – $832,066	35%	2028 scenario falls here
Over $832,066	37%	Above all scenarios

Key insight: The 2028 scenario shows taxable income of $687,013 — firmly in the 35% bracket. This is significantly higher than the 2025 and 2027 projections (both in the 32% bracket) and likely represents a year with an additional income event such as a large Roth conversion, business sale, or deferred compensation payout. The visual impact of the taller 2028 bar makes this immediately clear to a client without requiring them to read any numbers.

Reading the Long-Term Capital Gains Chart

The right chart uses the same stacking format but maps income against the LTCG/QD rate thresholds instead of the ordinary income brackets. Capital gains of $132,600 are held constant across all four scenarios — the question the chart answers is whether the overall income level pushes those gains into a higher tax tier.

2028 LTCG Threshold	Rate	Impact in Sample
$0 – $96,700	0%	No scenarios qualify
$96,700 – $664,289	15%	2024, 2025, and 2027 fall here
Over $664,289	20% + NIIT	2028 scenario: AGI $726,893 triggers 20% rate plus 3.8% NIIT → effective 17% shown

Key insight: In three of the four scenarios the $132,600 in long-term capital gains is taxed at 15%. In the 2028 scenario the total income is high enough to push into the 20% LTCG tier, and the 3.8% NIIT also applies, producing an effective LTCG rate of 17%. This demonstrates that a high-income event can increase the effective tax rate on investment income that was already planned, even if the gains themselves are unchanged.

Key Data Table: All Four Scenarios Side by Side

Page 2 of the report presents the headline figures in a clean comparison table. This is the page to print or share in a client meeting — it allows advisors to walk through effective rates, income levels, and tax totals without the complexity of the full Tax Projections report.

	2024 Tax Return	2025	2028	2027
Effective Federal Income Tax Rate	18%	21%	26%	22%
Effective LTCG Tax Rate	15%	15%	17%	15%
AGI	$281,913	$460,716	$726,893	$542,255
Taxable Income	$251,260	$427,763	$687,013	$503,129
Total Tax (Federal)	$47,677	$89,877	$180,319	$111,919
Long-Term Capital Gain/Loss	$132,600	$132,600	$132,600	$132,600
State Tax Amount	$0	$41,563	$67,915	$20,619

Combined Tax Burden Across All Scenarios

2024 Tax Return: $47,677 federal + $0 state = $47,677 total (refund of $842)

2025 Projection: $89,877 federal + $41,563 state = $131,440 total (Oregon, 9.9% marginal)

2028 Custom Scenario: $180,319 federal + $67,915 state = $248,234 total (high-income event year)

2027 Projection: $111,919 federal + $20,619 state = $132,538 total (North Carolina, 3.99% marginal)

How the Scenario Comparison Differs from the Full Tax Projections Report

Tax Projections Report (12 pages)	Scenario Comparison Report (3 pages)
Line-by-line income and deduction detail across all years	Two visual charts showing income composition and bracket position
Full gross income breakdown by source	Six-row key data table with headline figures only
Complete deduction and credit calculation	Effective rate comparison across all four scenarios
State tax detail with deductions and exemptions	State tax total only (no state-by-state breakdown)
MAGI tier eligibility checker for 14+ credits and deductions	Designed for client-facing presentation, not advisor analysis
Best for: advisor analysis and scenario modelling	Best for: client meetings, visual summaries, and slide decks

How to Use This Report in Client Meetings

1	Open with the bracket chart. Show the client where their income bar lands relative to the bracket thresholds in each scenario. The visual immediately communicates the consequence of a high-income year without requiring any explanation of marginal rates.
2	Point out the 2028 bar. Ask: “This is what happens if we have a large income event in 2028 — a big Roth conversion, a business distribution, or deferred comp. Your federal tax alone would be $180,000. Is that a year we want to plan around?”
3	Use the LTCG chart to explain investment tax efficiency. Show that the capital gains are taxed at 15% in most scenarios but 17% in the 2028 high-income year. This reinforces the importance of managing the timing of income events around existing capital gains.
4	Present the key data table as the takeaway page. The six-row summary is the simplest possible view of the comparison. Walk through effective rates row by row: 18% in 2024, rising to 21% in 2025, peaking at 26% in 2028, then returning to 22% in 2027.
5	Connect to action items. Use the comparison to open conversations about: managing IRA distributions to stay below bracket thresholds, timing large income events across multiple years, charitable giving in high-income years to offset the tax cost, and state of residence planning.

Ready to build a scenario comparison for your client?

Open the Tax Projector, model your scenarios, and download the Scenario Comparison report from the output screen.

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Disclaimer: Information provided is for educational purposes. Your advisor does not provide tax, legal, or accounting advice. In considering this material, you should discuss your individual circumstances with professionals in those areas before making any decisions.