A high-income year can send a large share of what you earn to federal and state tax at the top rates. An analysis looks at the whole picture before year-end, while the outcome can still be changed, rather than after the fact.

A business owner in California faced a one-time spike in ordinary income, with income in the $2.5M–$5M range for the year. On a conventional approach, the projected combined federal and state tax fell in the $1M–$2.5M range, a large share of the year's income lost to tax at the top rates.

After a full analysis, TaxWealth structured the year so the taxpayer kept substantially more of the income, about 38.9% more in the first year than the conventional outcome. That capital stayed available to the taxpayer to reinvest and build on.