Get ready for tax time with less stress and more confidence. With HoneyBook Balance’s tax savings bucket, you can automatically set aside a portion of every client payment to help cover your income taxes—keeping you organized and financially prepared.
What is a tax savings bucket?
The HoneyBook Balance tax savings bucket is a dedicated space to save specifically for your income tax bill. It works like a regular savings bucket but is designed to help you:
Proactively plan for taxes
Minimize financial surprises at tax time
Build financial security through consistent savings
Learn more about creating and managing a regular savings bucket.
How it works
You have complete control over how your tax savings bucket operates:
Automatically save a set percentage from every client payment, ideally matching your estimated income tax rate
Pause savings temporarily while keeping the funds in the bucket
Transfer funds to your available balance anytime, with or without stopping future savings
Restart saving whenever you’re ready
This flexible setup makes it easy to stay on top of your tax obligations without the guesswork.
Set up a tax savings bucket
You have control over how much of your payments goes into this savings bucket, and can update it or withdraw from it at any time.
From the navigation menu, select Finance > Balance
Under "Savings buckets," select CREATE BUCKET
Name your bucket
Enter a percentage
Work with your financial advisor to decide what this percentage should be
Select CREATE BUCKET
How transactions appear after creating a bucket
The transaction amounts in your transactions table will show:
The amounts after processing fees are subtracted
The amounts before any savings bucket amounts are subtracted
For example, if you set up a savings bucket with a rate at 10%, receive a payment for $150, have 3% in processing fees for the transaction, and have no other savings buckets set up.
Your Transactions table amount would show $145.50 for that transaction
$150 minus $4.50 (the 3% processing fee)
$14.55 would be added to your tax savings bucket
10% of the transaction amount (your smart tax rate) after processing fees
$130.95 would be added to your available balance
The transaction amount after processing fees and tax savings bucket withholdings
You can view exactly how much of each transaction went to your tax savings bucket by selecting that transaction from your transactions table.
Manage your tax savings bucket
You can manually change your savings percentage, stop or resume saving, or transfer funds into and out of this bucket.
From the navigation menu, select Finance > Balance
Under "Savings buckets," find your bucket, then select the triple-dot icon > Edit
From here, make changes to your bucket
Use the following "Bucket actions" table to learn more about your options
Select SAVE CHANGES
Bucket actions
📣 Note
If you decide to move your tax savings bucket's funds to your available balance, the entire amount in the bucket will be transferred. You can’t set a custom amount to be transferred.
Deciding when to withdraw funds from your tax savings bucket is a topic you should discuss with your financial advisor when preparing to tackle your tax bill
Bucket action | Description |
Change savings % | Increase or decrease a bucket’s savings percentage. |
Stop saving for taxes
Resume tax savings | Temporarily stop saving and keep the money in your tax bucket, or resume saving if you previously paused. |
Move to available balance | Move the entire amount from this bucket to your available balance and either keep or stop saving.
You can only transfer the entire amount held in the bucket to your available. Partial transfers aren’t currently available.
If you stop saving, this bucket will be deleted, though you can start again with a new bucket at any time. |
Transfer to | Transfer funds into this bucket from your available balance. You can transfer up to your total available balance. |
Still have questions? Feel free to send us a message by clicking the Question Mark icon on any HoneyBook page. Our team is always happy to help!
HoneyBook is a software company, not a bank. Banking services are provided by Lincoln Savings Bank, Member FDIC. HoneyBook Visa Debit cards are issued by Lincoln Savings Bank, Member FDIC. HoneyBook is not FDIC insured. FDIC insurance only covers the failure of an insured bank.