What the projection looks at
We start from prior-year returns and current statements, then project federal and state tax year by year under the family’s expected circumstances.
- Ordinary income, capital gains and qualified dividends
- Bracket thresholds and how much room is left in each
- Phase-outs and surtaxes, including the net investment income tax
- Medicare premium surcharges (IRMAA) for clients near or in retirement
- Expected changes such as retirement, a business sale or a move to another state
Why several years instead of one
Many planning decisions only make sense across years: moving income into a low-bracket year, spreading a large gain, or timing deductions so they count. Seeing the years side by side shows where those opportunities are and what each choice costs later.