Year-round · Federal · NJ · NY
Tax Planning and Projections for New Jersey Business Owners and Individuals
A tax return reports what already happened. Planning changes the number before the year closes. We project your federal and state tax for the current year and tell you what to do while there is still time.
Monday to Friday 10am to 6pm, weekends 11am to 5pm.
What a projection gives you
A number, scenarios and a short list of actions.
Your expected tax
Federal, New Jersey and New York for the year, from year-to-date numbers.
Side-by-side scenarios
A bonus this year or next, a property sale, a change in owner salary.
Right-sized estimates
Quarterly payments that avoid penalties without overpaying.
Actions with dates
A short list of what to do and by when, not a 30-page report.
Planning for business owners
Eight decisions that move the number, each one done by the rules.
Entity choice
Whether an S Corporation election saves money after payroll costs and state taxes.
Owner compensation
A salary that is defensible as reasonable and efficient for the qualified business income deduction.
Retirement contributions
Which plan fits, a Solo 401(k), a SEP IRA or a 401(k) through your payroll provider, and how much to put in. We size the contribution, your provider sets up the plan.
Hiring your children
Paying your children for real work at a reasonable wage. Done right, the wages are deductible to the business and can be tax-free to the child.
Reimbursing yourself
An accountable plan that pays you back, tax-free, for the business use of your home office, phone and car.
Pass-through entity tax
Whether to elect NJ BAIT or NY PTET, and how much to pay in by year end.
Timing
Equipment purchases, depreciation elections, and when to bill and pay.
A sale or exit
How the structure of a sale changes what you keep.
Planning for individuals
The years that are not like last year.
Equity compensation
RSU vesting, option exercises and concentrated stock positions.
A big sale
A home, a rental property or a business interest.
A move
Into or out of New Jersey or New York, and what each state will still tax.
Under-withholding
From bonuses, multiple jobs or investment income.
Turning 63 or already on Medicare? Your income sets your Part B and Part D premiums two years later. Read about IRMAA planning.
How a projection works
From year-to-date numbers to a dated action list.
Year-to-date numbers
Pay stubs, a profit and loss, brokerage activity and anything unusual this year.
The projection
Federal, New Jersey and New York tax for the full year, compared with what you have paid in.
Scenarios
Two or three versions side by side: the salary, the sale, the timing, the election.
Actions with dates
What to do, how much and by when, on one page.
A check-in
Numbers move. We update the projection before the next decision point.
A worked example
One payment, no penalty.
Isabella’s federal tax last year was $40,000, and her adjusted gross income was over $150,000. Business picked up this year, and her withholding and estimates through September total $30,000.
| Last year’s tax | $40,000 |
| Safe harbor at 110% | $44,000 |
| Paid through September | ($30,000) |
| Fourth-quarter payment that avoids the penalty | $14,000 |
Paying $14,000 by January 15 protects her from the federal underpayment penalty, even if this year’s tax turns out higher. The projection also shows what the rest of the bill will be in April, so it is not a surprise. New Jersey has its own test: you are generally safe if you pay at least 80% of this year’s tax or 100% of last year’s.
Year-end deadlines
What has to happen, and when.
By Dec 31
Payments that count this year
New Jersey BAIT and New York PTET payments you want deducted this year, charitable gifts, and property taxes due.
By Dec 31
Moves that close with the year
Selling investments to use losses, required minimum distributions, owner payroll and bonuses, and equipment placed in service.
By Dec 31
NJBEST contributions
Up to $10,000 is deductible in New Jersey with income of $200,000 or less.
Jan 15
Fourth-quarter estimates
Federal, New Jersey and New York, sized from the projection.
By the return due date
Retirement contributions
Many employer contributions to a SEP IRA or Solo 401(k) can still be made for last year, up to the due date of the return including extensions.
When to call us mid-year
The best time is before it happens.
Before a big vest or exercise
RSUs and options are withheld at a flat 22%, and many people owe more.
Before you sell
A home, a rental or a business interest. The structure and timing change what you keep.
Before you move
New Jersey and New York each tax part of the year, and New York looks back at where you worked.
When income jumps
A bonus, a new client or a second job can push you past the safe harbor.
Common questions
Before you book.
How do I avoid an underpayment penalty?
For federal purposes, you are generally safe if you pay in at least 90% of this year's tax or 100% of last year's. The prior-year figure rises to 110% when last year's adjusted gross income was over $150,000.
Can I put my children on the payroll?
Yes, if they do real work for the business and are paid a reasonable wage for it, with time records to show it. If the business is a sole proprietorship, or a partnership owned only by the parents, wages to a child under 18 are also free of Social Security and Medicare taxes. S Corporation wages do not get that exemption.
When should planning happen?
After the second or third quarter, when there are real numbers to work with and still time to act. October and November are the usual window.
Do I need planning if I only have W-2 income?
Usually not every year. It pays in the years that are different: a large bonus or stock vest, a home sale, a move between New Jersey and New York, or a big change in withholding.
How do New Jersey estimated payments work?
They are due on the same dates as federal estimates: April 15, June 15, September 15 and January 15. You are generally safe from New Jersey's penalty if you pay at least 80% of this year's tax or 100% of last year's.
Can you schedule my estimated payments?
Yes. Once the amounts are set, the federal and state payments can be scheduled in advance so you do not have to remember the dates.
Is planning only for business owners?
No. Equity compensation, the sale of a home or rental, retirement withdrawals and moves between states are some of the most common reasons individuals call.
Tax Guides
Read more first.
- Should my S Corporation make the NJ BAIT election?
- How are RSUs and stock options taxed in New Jersey?
- How is New Jersey income tax different from federal?
- Why does my business show a profit but I have no cash?
- I live in New Jersey and work in New York. How am I taxed?
- How much salary should I pay myself from my S Corporation?
- Solo 401(k) or SEP IRA: which is better for a self-employed owner?
- Should my single-member LLC become an S Corporation?
- All tax guides
December 31 closes most of your options.
The first consultation is free. Call before year end.