As we head into the second half of the year, it’s the perfect time for a mid-year tax check-in. Whether you’re a business owner, self-employed, or an employee, taking stock of your tax situation now, not in December, can make a big difference by helping you avoid surprises, taking advantage of opportunities, and staying in control of your finances.
Here’s what to focus on during your mid-year review:
If you’re a W-2 employee, check your most recent pay stub and compare it with your last tax return. Are you withholding too much, or too little?
Too much? You could be missing out on money each paycheck.
Too little? You might owe a big bill (and potential penalties) next spring.
Use the IRS Withholding Estimator or talk to your accountant to fine-tune your W-4.
Your life may have changed since January. Maybe you bought a home, had a child, changed jobs, or started school. These changes can affect what you’re eligible to deduct or claim.
Some key areas to review:
Retirement contributions (Are you maxing out your IRA/401(k)?)
Charitable donations
Education expenses
Business mileage and home office use
Health savings account (HSA) contributions
Catching these now means more time to adjust and potentially lower your tax bill.
If you’re self-employed or own a small business, your mid-year check-in is essential. Take this time to:
Track profit and loss so far this year
Plan for estimated tax payments
Identify deductions you may have missed
Forecast cash flow and set aside money for Q3 and Q4 taxes
Bonus tip: Mid-year is also a great time to consider big-ticket purchases or investments that could offer tax benefits by year-end.
Waiting until year-end or tax season to make financial decisions can limit your options. A proactive mid-year check-in helps you:
Avoid underpayment penalties
Reduce stress and guesswork
Make smart, timely financial moves
Need help reviewing your tax strategy or business finances? Our team is here to make sure you’re on track for a smooth tax season.
Let’s schedule your mid-year review today. Reach out to an Alloy Silverstein advisor to get started today.
Empowering business owners and individuals in South Jersey and Philadelphia to feel confident through proactive accounting and advisory solutions.
