Prepare for Taxes with Plans¹

Taxes can be a pain. They're confusing, they're complicated and they take up a lot of your time. But here's something to consider: what if there were a way to automatically set aside funds each time you got paid to ensure you were covered come tax season? Well, you're in luck because there is—and it starts with setting up a Routine for saving for taxes throughout the year!

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Prepare for Taxes with Plans

Use the Tax Routine to set aside money for taxes every time you get paid. 

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Deposit Account

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Set yourself up for tax-season success

Whether you’re a W2 employee and have taxes withheld throughout the year, self-employed and pay taxes periodically, or have multiple streams of income and want to ensure you’re prepared come April 14th, it’s crucial to plan ahead so you know you’ll be covered when Uncle Sam comes knocking.

With this Routine template, you can set aside a percentage of your income each time you get paid.

Before you begin:

Determine your expected taxes this year, you may want to start with last year’s tax return

  • Be sure to consider tax-saving strategies like Roth IRAs and 529 accounts in your overall financial plan1
  • Calculate the percentage of each paycheck or source of income you’ll need to set aside
  • Set a Routine to automatically categorize your other sources of income as taxable income
  • Create a Plan that you’ll direct your tax savings toward

Save now to be prepared for tax season

Creating a Routine for taxes will create discipline in your savings habits and preparation for tax season. 

How to set up this Routine:

  1. Click ‘Try this Routine’
  2. Select the account to which the income will be deposited (the trigger will be pre-populated when you activate this Routine but you can edit it as needed)
  3. Select the distribution type – you can choose an amount based on percentage or dollar amount – for taxes, percentage will make the most sense for most people.
  4. Set the amount (i.e. 20% or $200, depending on the distribution type you selected)
  5. Set the Plan your tax savings will flow into
  6. Save your Routine and have confidence you’ll be covered when it’s time to pay your taxes.

Quick tip: If you know you’ll owe taxes at the end of the year, why not make sure that cash is earning top interest until it’s time to pay up? Not only does this Routine help you have peace of mind come tax season, you’re putting that money to work while you wait for tax day.

¹ This information is for informational purposes only and is not legal, financial, or tax advice, and it may not be suitable for your individual needs; speak to a licensed financial advisor who can help you tailor a plan for your specific needs and a tax advisor who can help you with any tax implications.


Paycheck Split Routine

Automatically transfer a fixed amount or percent to a savings plan after each deposit.

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Deposit Account
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What’s in a Routine?

The best financial habits are the ones you can keep — so we built a way to make sticking to your goals easier than ever. Whether you’re focused on saving for the future or making smarter spending choices today, Routines are here to help.

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