What tax planning actually means
Tax preparation is the process of documenting what happened last year and filing a return. Tax planning is the process of understanding what is likely to happen this year — and making decisions before the year ends that affect what you owe.
For business owners, the stakes are higher than for W-2 employees. You are responsible for estimating your own tax liability, making quarterly payments, and managing the interaction between your business income and your personal return. When income changes — up or down — the tax implications can be significant if you are not paying attention throughout the year.
The guides in this cluster cover the most common tax planning questions that come up for business owners, LLC owners, independent professionals, and high earners — particularly those in New York.
Who this applies to
Key topics in tax planning
Estimated taxes
When you owe them, how to calculate them, and what happens if you underpay.
Income changes
How a better or worse year than expected affects your quarterly obligations.
Deductions and timing
When to accelerate or defer expenses based on your projected income.
Business ownership
How your entity type affects your tax planning options and obligations.