What is a Tax projection?

A tax projection is an estimate of your full-year tax liability built from your income and deductions to date, annualized and applied to current rules. It lets you compare what you have paid against what you will owe so that you can adjust withholding, increase payments, or time deductions before year-end. Built at mid-year and revisited each quarter, it turns planning into deliberate, informed action, and it works for both individuals and business owners. Testing different moves against a projection, such as funding a Traditional 401k plan, shows the savings clearly before you commit to it.