The Taxes module lets you build multiple tax scenarios for a client and compare them side by side. This is how you model things like Roth conversions, changes in filing status, or different income assumptions for year-end planning.
Scenarios live under Planning > Taxes. The module has four pages across the top: Home (a dashboard for the client's current scenario), Returns (uploaded tax returns), Scenarios (where you build and edit each scenario), and Compare (side-by-side comparison of up to 4 scenarios).
Creating a New Scenario
On the Scenarios page, each scenario is its own tab. Click the + button at the right end of the scenario tabs bar and you'll get a dropdown with three ways to create one:
Manual input — Start from scratch. Name it, and Kerdora opens a new scenario with default inputs. Most fields start in Derived mode, so they pull from client data you've already entered.
Copy current scenario — Creates an exact copy of the scenario you're viewing with all inputs carried over. The copy gets a suggested name like "Current Scenario (1)" that you can change before saving. This is the fastest way to model "what if" comparisons.
From extracted returns — If you've uploaded a tax return on the Returns page, it shows up here once extraction completes. Pick it and Kerdora builds a scenario pre-filled from the actual return.
You can create as many scenarios as you need. Each one is completely independent.
When you create a scenario from an extracted return, Kerdora shows a Match return names to household step. It matches the taxpayer and spouse on the return to the adults in the client's household (or lets you pick Add new person if someone isn't in Kerdora yet), then creates the scenario.
Renaming, Deleting, and Setting a Main Scenario
Rename: Double-click any scenario tab to edit the name inline. Press Enter to save or Escape to cancel.
Delete: Click the red trash icon next to the + button. You'll get a confirmation prompt. This option only appears when you have 2 or more scenarios.
Set as main: Open the scenario's Inputs view and click the Set as main scenario button in the toolbar at the top. The main scenario is what the rest of Kerdora uses (overview and cash flow), and its tab shows a badge icon. Only one scenario can be the main scenario at a time.
What You Can Configure
Inside a scenario, the Inputs view organizes everything into sections:
Configuration — Tax year, state, filing status, and family details
Income — Wages, business income, investments, and retirement income
Adjustments to income — Above-the-line deductions like retirement contributions, HSA contributions, and student loan interest
Deductions — Standard vs. itemized, with itemized detail for medical, SALT, mortgage interest, and charitable giving
Other deductions — QBI (Section 199A) inputs
Tax Credits — Education, dependent care, energy, and marketplace credits
Payments — Withholding, quarterly estimated payments, prior-year safe harbor figures, and optional overrides for Additional Medicare Tax and NIIT
A few Configuration details worth knowing:
Tax Year runs from 2024 through 2040. If you pick a year beyond the latest official IRS figures, a Projected tax inflation rate field appears (default 2.5%) and Kerdora projects brackets and thresholds forward for you.
Filing Status — Single, Married Filing Jointly, Married Filing Separately, or Head of Household.
Family — Number of Dependents, Children Under 17 (Child Tax Credit), EIC Children, Children Under 13 (dependent care credit), and Other Dependents (the $500 Credit for Other Dependents).
Most fields support a Derived toggle. When Derived is on, the value pulls automatically from other client data you've already entered (like state and filing status from Household, or wages from Profile). You can always override with a manual number.
Where the Results Live
Each scenario has its own set of views, shown as tabs inside the scenario:
Inputs — Everything described above.
Analyze — The results cockpit: total tax, effective and marginal rates, safe harbor status, tax mix, bracket breakdowns, capital gains, MAGI thresholds, Medicare IRMAA, NIIT, Social Security taxability, and a sortable list of planning items.
Report — A client-ready report of the scenario.
1040 — The scenario laid out in Form 1040 format, line by line.
Comparing Scenarios
Click Compare in the top navigation to see scenarios side by side. You can compare up to 4 at once, and add, remove, or swap which scenarios are in the comparison. The comparison shows how key numbers differ between scenarios, so you don't have to flip between tabs and remember values.
Here's a workflow that works well:
Build your baseline — Enter the client's current-year numbers as accurately as possible (or create the scenario directly from their uploaded return). Name it something like "2026 Current."
Copy it — Click + and choose Copy current scenario.
Rename the copy — Give it a descriptive name like "2026 + Roth Conversion" or "2026 Retire Mid-Year."
Change the inputs you're testing — Adjust the specific fields that differ. Everything else stays the same.
Open Compare — Put the baseline and the variation side by side and look at total tax, effective rate, and the thresholds that matter for this client.
Repeat — Copy again if you want to test a third or fourth variation.
Pay attention to the MAGI and IRMAA sections in Analyze when comparing scenarios. A Roth conversion might increase total tax slightly but keep the client below an IRMAA surcharge threshold, which could save them more in the long run.
Common Use Cases
Roth Conversion Modeling
Copy the baseline scenario and add the conversion amount to the Roth conversion field in Income. Compare the tax hit against the MAGI thresholds to find the sweet spot where you're converting as much as possible without triggering IRMAA or losing other deductions.
Year-End Tax Planning
Late in the year, build a scenario with known income and a second one with estimated year-end numbers (bonus, capital gains distributions, etc.). Compare to decide on timing for charitable contributions, tax-loss harvesting, or retirement contributions.
Filing Status Changes
Copy a scenario and change the Filing Status. Useful for clients going through a divorce or marriage to see the tax impact of each filing option.
Multi-Year Projections
Because tax years run out to 2040 with projected inflation adjustments, you can build a scenario for a future year (say, the client's first retirement year) and compare it against today.
Starting from a Filed Return
Create a scenario directly from the client's uploaded return so your baseline matches what was actually filed. That gives you a trustworthy starting point for every what-if that follows.