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Solve for Min/Max

A simple click of this tool canshow tell you how much more ordinary income or capital gains income can be realized before an increase in the effective tax rate.

The tool can be found in Scenario Analysis by clicking the ellipses at the top of the scenario near the title.

The system starts with the scenario in question as a baseline, then iteratively adds $500 and calculates the resulting tax to find at which point the effective tax rate moves higher than the baseline scenario.

Remember, we’re looking for the change in the effective tax rate, not just when a client moves from one marginal bracket to the next.

  • Effective rates could change because of credits or deductions phasing in or out, even though the marginal bracket hasn’t changed.

  • The tool will also run the same calculation but iteratively subtract $500 instead, and that will represent the amount of income needed to decrease the effective tax rate.

     

  • For taxpayers 65 and over, we will also show how much income a client could recognize before moving into the next level of the Medicare surcharge for Parts B and D.

With this number, create a new scenario and add the additional income to compare.


Looking for more color as to why a certain number is the min/max, or want to see the next marginal bracket change? Check out our Range Calc tool!