Defined annual tax planning
See the number while you can still change it.
A projection turns income to date, payments made, and decisions still open into a practical view of what you will owe. Run in October it is a plan. Run in January it is a weather report. From $950.
What it is
One calculation, one conversation, one list.
This is a defined engagement with a beginning and an end, not open-ended advisory. It exists because the useful moment for tax decisions is the fourth quarter, and almost nobody uses it.
- Year-to-date income and expenses, annualized to a full-year estimate
- Federal and state tax calculated on that estimate
- Payments made so far, and the gap between those and the projected liability
- Revised estimated payment amounts and dates for the rest of the year
- For an S corporation, whether wages and distributions are where they should be
- Retirement contribution capacity given the compensation picture
- One meeting, and a short written action list with a deadline on each item
From $950. A projection for a business with multiple entities or several states is quoted after a look at the situation.
Timing is the whole thing
October is worth more than January.
Almost every lever available to a business owner closes on December 31. Run the projection in October or early November and you can still change a wage, time a purchase, fund a plan, or adjust a final estimate. Run it in January and you are describing a result that is already fixed.
What survives year-end is a short list: retirement contributions for certain plan types, health savings account contributions, some elections made with a timely filed return, and a few accounting method choices. Useful, but narrow. Everything else was decided while the year was still running.
This service is offered May through December for that reason. During filing season the honest answer is that a projection will not change your prior-year outcome, and taking money for one would be selling you a report.
When it earns its cost
Not every year needs one.
A year where profit tracks the prior year and nothing structural changed usually does not need a projection. Prior-year safe harbor covers you and the return will hold no surprises. These are the years that do:
- Profit is materially different from last year. Estimates built on the prior year will be wrong in one direction or the other, and the direction matters.
- You are considering an entity change. The S election has a filing deadline, and the analysis has to happen before it rather than after.
- A large purchase is planned. Equipment placed in service in December is treated differently from January, and the depreciation election interacts with the rest of the return.
- A sale is in view. How a sale is structured drives the tax on it, and structure gets decided in negotiation, not in preparation.
- You have started operating in another state. Employees, property, or sales elsewhere can create filing obligations nobody notices until a notice arrives.
- Retirement capacity is going unused. Plan types have different establishment deadlines and some have to exist before year-end.
What it is not
Two honest limits.
It is not a promise of savings. A projection frequently confirms the current approach is right and the expected balance is correct. That is a real answer even though it can feel like paying for nothing, because the alternative is finding out in April with the money already spent.
It is not aggressive structuring. Strategies that depend on recharacterizing personal spending, valuations that will not hold, or arrangements with no purpose beyond the deduction are exposure, not planning. The signature on the return is yours.
The difference between this and filing your return is laid out in the preparation versus planning guide.
Common questions
How much does a tax projection cost?
A defined annual projection starts at $950 and includes the projection itself, federal and state estimated payment calculations, a review of S corporation wages and distributions where applicable, retirement contribution considerations within the agreed scope, one meeting, and a written action list. Businesses with multiple entities or several states are quoted after an initial look.
When should a tax projection be done?
Generally in the fourth quarter, most often October or early November. By then most of the year is known and there is still time to change wages, time a purchase, fund a retirement plan, or adjust a final estimated payment. A projection run in January forecasts a result that is already fixed, which helps with cash planning and does nothing to the number.
Can anything reduce my taxes after December 31?
A short list. Retirement plan contributions for certain plan types, health savings account contributions, some elections made with a timely filed return including extensions, and certain accounting method choices remain available. Beyond those the year is closed and the return reports what happened. This is why the timing of planning matters more than the sophistication of it.
Do I have to be a tax client to get a projection?
It works best alongside preparation, because the projection depends on knowing how the prior return was filed and how the books are kept. A projection on its own is possible but takes longer to set up, since the groundwork has to be done from scratch rather than already being in hand.
Will this guarantee I pay less tax?
No, and be wary of anyone who says otherwise. Sometimes it confirms the current approach is appropriate, in which case the value is knowing the number early enough to have the cash ready. When there is a change worth making it finds it while there is still time to act.
Next step
Start with a call.
Twenty minutes. A few questions when you book so the call starts with the useful part, and a direct answer about whether this is a fit.