Mid-Year Tax Planning

by: Kassie Armstrong

Summer is here and you’re most likely thinking about upcoming vacations, weddings, and pool parties! What you’re probably not thinking about is taxes–but maybe you should be. Here are a few things that you can do now that will help ease the burden of dealing with taxes at year end:

Adjust your withholding
If you’re getting married, divorced, or having a baby this year, all these life changes can affect your taxes. Changing your W-2 withholding or exemptions is fairly simple, just stop by human resources or your payroll department and submit a new W-4. Many employers allow you to do this online as well.

Evaluate estimated taxes
Since the year is almost half over already you should have a good idea of what your total income will be for the year. If you think your income will change significantly from prior year, you should adjust your estimated tax to prevent a big over payment or underpayment and penalties at tax time.

Get organized
Set up a tax folder and start gathering all your relevant tax documents in one place so you won’t have to hunt for them later. Keep charitable contribution receipts, unreimbursed medical expenses, business expenses, and other pertinent tax information. This will assist you in filling out that tax organizer at the beginning of next year.

Hire a tax professional
Summer is typically a little slower than during the busy filing season and tax professionals are more willing to take on new clients and spend some time on tax planning strategies.

Feeling overwhelmed or don’t have the time to take a quick peek? Give us a call at 216.524.8900 or fill out our contact form. One of our tax experts can get you organized and put a plan together to make sure you’re not scrambling at the end of the year!