The Faithful Entrepreneur's Guide to Year-End Tax Stewardship

This past tax season, someone came to me after preparing her return through TurboTax. She owed almost $6,000 and could not understand why. A friend referred her to me, hoping I could find a better outcome. After reviewing her return, unfortunately, the result was the same, she owed the balance.

She was a W-2 employee, like millions of Americans, and the reality was simple: not enough taxes were withheld throughout the year. By the time she came to me in April, it was far too late to fix. The decisions that could have saved her thousands — like adjusting her withholding or making year-end contributions — needed to happen before December 31st.

She felt blindsided, stressed, and frustrated. And unfortunately, she is not alone. This story is played every single year, across all fifty states, for employees and entrepreneurs alike.

The Two Tax Timelines: Employee vs. Entrepreneur

For W-2 Employees (All States)

• Your employer withholds taxes, but it is your responsibility to review whether adjustments are necessary.

• The deadline for tax-saving moves (adjusting your W-4, contributing to retirement, making charitable gifts) is December 31st.

• By January, your return is simply a report card on decisions already made.

• And beware: if you are consistently getting big refunds, that is not “free money.” It means you gave Uncle Sam an interest-free loan all year. He does not pay you back with interest unless the IRS takes more than 45 days to issue your refund. That money could have been working for you, in savings, investments, or your business…. instead of sitting in Washington.

For Entrepreneurs & Self-Employed

• You are your own “withholding system.” No one else is taking care of it for you.

• Most deductible expenses must be incurred by December 31st (if it is on a cash basis).

• You may still contribute to retirement accounts like a SEP IRA or Solo 401(k) up to April 15th (or the filing deadline).

• Estimated taxes are required throughout the year to avoid penalties.

• The same principle applies here: do not overpay and starve your business of cash flow. Balance paying what is required and keep more money in your hands throughout the year.

Extensions: A Costly Misunderstanding

One of the most common mistakes is assuming an extension gives you more time to pay. It does not.

• An extension = more time to file paperwork.

• Interest and penalties start immediately if you owe and have not paid by April 15th. This misunderstanding alone costs taxpayers thousands every year.

Stewardship Over Surprises

As Christian women entrepreneurs, it is important to view tax planning not just as a legal requirement but as an act of stewardship.

Proverbs 27:23 reminds us:

“Be sure you know the condition of your flocks, give careful attention to your herds.”

Every dollar wasted on interest, penalties, or sitting in an IRS refund cycle is a dollar that could have been invested in your business, directed toward your family, or sown into Kingdom work.

Jesus also asked in Luke 14:28:

“For which of you, desiring to build a tower, does not first sit down and count the cost?”

Wise planning is not only financial wisdom — it is Kingdom wisdom!

A Call to Action

• If you are a W-2 employee → Check your paystub NOW. Do not wait until December. Adjust your W-4 if needed.

• If you are an entrepreneur → Reconcile your books, set aside taxes, and plan your

retirement contributions.

• For everyone → Run a year-end projection before December 31st. Do not wait until April to discover a costly surprise.

Checking your paystub or books before the end of the year is not just smart — it is faithful

stewardship. Do not wait until April to pray for a miracle when wisdom calls you to act in December.

Tax season does not have to be stressful. With wisdom and stewardship, you can walk into 2026 confidently, prepared, and positioned for growth, and with more of your money working for you, instead of sitting in Uncle Sam’s pocket!