Maximizing Tax Savings for Consultants with S-Corps Earning Over 1.5 Million

Consultant with S-Corp

income above $1,500,000

$413,774

ILLUSTRATIVE SAVINGS

The taxpayer was facing more than $300,000 in projected taxes.

The issue was not a single missed deduction; it was the absence

of a coordinated strategy across compensation, depreciation, and

estimated payments.

What changed

• Modeled several planning scenarios before filing season.

• Used entity and compensation planning to keep the strategy

  compliant.

• Coordinated depreciation and payment timing to reduce

  surprise balances due.

EXPANDED SOLUTION

Solution: run the tax plan like an

operating plan

High-income owners need a forward-looking plan that connects bookkeeping, payroll, asset purchases, and cash reserves. The goal is not just a lower tax bill; it is fewer surprises and better decision-making.

1. Scenario-based projections

Build a base case and planning alternatives so the owner can compare tax outcomes before committing to a strategy.

2. Compensation and distribution alignment

Review W-2 wages, owner distributions, and payroll-tax exposure in the context of business income and role.

3. Depreciation and asset strategy

Identify eligible asset purchases and place-in-service dates that may support accelerated deductions.

4. Estimated payment reset

Adjust quarterly payments based on the new projection so tax savings translate into clearer cash

planning.

Source table: S-Corp income above

$1,500,000