# Tax Estimates

# Why did I receive a tax estimate instead of a final K-1?

Tax estimates are issued when a final K-1 is not expected to be ready until later in the fiscal year. This typically happens with funds that are still awaiting tax information from third parties, or that need additional tax work due to non-standard characteristics — for example, pass-through entity investments, international holdings, complex state-level filing requirements, or crypto positions.

These estimates reflect our best assessment of final taxable income given the data available at the time they are prepared.

# Is this information final?

In most cases, estimates will closely match the final returns. However, certain figures may change once the final K-1 is issued. We recommend discussing your tax estimate with your tax advisor.

# How to use a tax estimate before a K-1 is available

Seed Labs often issues tax estimates ahead of the final K-1 so that investors have early visibility into their expected tax obligations.

How you choose to use a tax estimate is ultimately between you and your tax advisor. That said, most investors follow one of two approaches:

- **Approach 1:** Use the estimated taxable income figures to calculate and submit estimated tax payments before filing your final return.
- **Approach 2:** File your tax return using the estimate in place of the actual K-1. If the final K-1 ends up being materially different, you can either amend your return or account for the difference in the following year's filing.