Mid-Year Tax Checkup: Why You Should Review Taxes in Summer

The Mid-Year Tax Checkup

Why Summer Is the Ideal Time

• You have half a year of actual data
• You still have time to make meaningful changes
• Estimated tax payments are still due (June 15 and September 15)
• Retirement contributions can still be adjusted
• Year-end gives you less than 30 days to act; summer gives you 6 months

What to Review

Income Review

• Is this year tracking higher or lower than last year?
• Any expected one-time events (bonus, stock sale, inheritance, business sale)?

Withholding/Estimated Payments

• Are you on pace to owe too much or too little?
• Adjust W-4 or June/September estimated payments now

Retirement Contributions

• Are you on pace to max out your retirement accounts?
• Adjust payroll contributions mid-year if needed

Capital Gains and Losses

• Have you had significant gains from investments?
• Are there losing positions you could harvest to offset?

Business Owners

• Are profits tracking higher or lower?
• Time to purchase equipment? Section 179 requires asset in service by December 31
• Consider vehicle purchase (over 6,000 lbs GVWR) before year-end

Life Changes

• Marriage, divorce, new baby, child leaving home
• These trigger significant tax changes

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Schedule your mid-year tax review with K2 Tax Solutions while you still have time to optimize.