📣 Note
This article covers a feature that's included in an invite-only closed beta. If you're not a part of the beta, your finance suite will look different, and the help articles you'll want can be found here.
Get ready to take a strategic and proactive approach to tax planning that will help reduce any anxiety and confusion you might have around your income tax bill.
You'll use your own custom percentage to automatically save a percentage of every payment for your income taxes.
Create a tax savings bucket
You'll have full control over how much of your payments goes into this savings bucket, and can update it or withdraw from it at any time.
To create a tax savings bucket:
1. Go to the Finance tab in the top navigation menu → select Dashboard.
2. Go to your Savings buckets → Select Save for taxes.
3. Enter your custom tax savings rate.
4. Select Create tax bucket.
How transactions appear after creating a bucket
The transaction amounts in your Transactions table will show the amounts after processing fees are subtracted and before any savings bucket amounts are subtracted.
Let’s say you set up a savings bucket with a rate at 10%, receive a payment for $150, have 3% in processing fees for that 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.
To manage your tax bucket:
1. Go to the Finance tab in the top navigation menu → select Dashboard.
2. Go to your Savings buckets → Select the 3-dot menu. From here, you can choose what change you'll make to your tax savings bucket.
a. Use the Bucket Actions table below to learn more about your options.
3. Make your changes → Select Save Changes.
Bucket actions
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. 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. |
What happens when I transfer funds out of my tax savings bucket?
What happens when I transfer funds out of my tax savings bucket?
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 cannot set a custom amount to be transferred.
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!