The Comparisons tab of RightCapital's Tax Analyzer allows you to curate an "alternative" tax scenario, and compare that to an "original" tax scenario of your choice. The Tax Analyzer module can be found within the Tax > Tax Analyzer tab of each client plan:
Tax Analyzer Availability
Trial
Basic
Premium
Platinum
The Tax Analyzer is available on both the Premium and Platinum subscription tiers. If you are interested in upgrading your account, please reach out to sales@rightcapital.com.
The original scenario can either be an uploaded tax return (for a historical comparison), or a projected tax return (for a future-looking comparison). You can choose between the two using the first dropdown menu in the upper right:
The alternative scenario will use your original scenario as a baseline, in addition to any changes that you've made using the Action Items. At the bottom of the page, you can make adjustments to the values of specific line items to curate your alternative scenario:
There are three charts available in the Summary tab, which can be toggled between by clicking the downward-facing arrow next to the name of the chart:
The Federal income taxes chart will highlight differences in federal income tax, AGI, taxable income, and deductions between the original and proposed scenarios. You can hover your mouse over the bar chart to view specific values, and quickly identify the differences between each scenario using the key metrics to the right of the chart:
The Ordinary income tax bracket chart will show where the original and alternative scenarios fall in relation to the ordinary income bracket thresholds in the year selected. You can hover your mouse over the bar chart to view specific values, and quickly identify the marginal bracket for the alternative scenario to the right of the chart:
Note on Tax Bracket Thresholds
Like other areas in RightCapital, the Tax Analyzer will project tax bracket thresholds out into the future using your Tax Inflation rate. The bracket thresholds displayed for ordinary income will also change depending on your chosen Tax Law setting for a given client.
The Capital gains tax bracket chart will show where the original and alternative scenarios fall in relation to the capital gains bracket thresholds in the year selected. You can hover your mouse over the bar chart to view specific values, and quickly identify the bracket for the alternative scenario to the right of the chart:
Please visit the link below for additional information on what differentiates the original and alternative scenarios, how to upload tax returns, and more:
