How to Use Tax Projections to Avoid Surprises

No one likes an unexpected tax bill. A well-timed tax projection can help you avoid unpleasant surprises and make smarter financial decisions before the year ends.

What Is a Tax Projection?

A tax projection is an estimate of your tax liability based on:

• Your current income and withholding
• Expected deductions and credits
• Any known financial changes (bonuses, stock sales, retirement distributions, etc.)

Why Should You Get a Tax Projection?

Tax projections help you:

• Avoid underpayment penalties
• Estimate your refund or balance due
• Make informed year-end decisions
• Adjust your withholding or estimated payments
• Take advantage of deductions before December 31

Who Benefits Most from Tax Projections?

Consider a projection if you:

• Are self-employed or earn freelance/gig income
• Have multiple sources of income (e.g., rental, interest, dividends)
• Sold investments or exercised stock options
• Had a major life change (marriage, divorce, retirement, new child)
• Expect a large bonus or payout before year-end

Smart Year-End Moves Based on Your Projection

Depending on your situation, we may recommend:

• Increasing retirement plan contributions
• Making charitable donations
• Selling investments to realize capital gains or losses
• Adjusting payroll withholdings
• Timing deductible expenses

Take Action Now

Tax season shouldn’t be a guessing game. A personalized tax projection gives you clarity and control. Contact our office to schedule a planning session and get ahead before year-end.