A mid-year tax check-up isn’t just for procrastinators—it’s for anyone who wants to make sure they’re not leaving money on the table. If you’re already starting to worry about taxes, don’t wait until the last minute. Taking action now could help you uncover opportunities to lower your tax bill and avoid penalties.
💡 Events That Could Impact Your Taxes
The following are some events that can affect your tax return; you may need to take steps to mitigate their impact and avoid unpleasant surprises after it is too late to address them.
Your Family Status Could Impact Your Taxes
- ❓Did you get married, get divorced, or become widowed?
- ❓Are you paying college tuition for yourself, your spouse, or your dependent(s)?
- ❓Did you welcome a new child into your family? Time to consider a tax-advantaged educational savings plan!
Change in Your Work Status Could Impact Your Taxes
- ❓ Did you change jobs or has your spouse started working?
- ❓Did you retire this year?
- ❓If you are an employee that incurs job-related expenses that aren’t deductible for years 2018 through 2025, have you arranged with your employer to participate in an accountable reimbursement plan for these expenses?
Changes In Income and Investments Could Impact Your Taxes
- ❓Did you have a substantial increase or decrease in income?
- ❓Did you have a substantial gain from the sale of stocks or bonds?
- ❓Are you considering an investment in a Qualified Opportunity Fund to defer tax on capital gains?
- ❓Are you taking full advantage of retirement savings plans?
- ❓Were you the beneficiary of an inheritance this year?
- ❓Are you on track to withdraw the required amount from your IRA (age 70-1/2 or older)?
- ❓Are you taking advantage of the IRA-to-charity transfers (age 70-1/2 or older)?
- ❓Do you have substantial investment income or gains from the sale of investment assets? If so, you may be hit with the 3.8% surtax on net investment income and need to adjust your advance tax payments.
- ❓Did you make any unplanned withdrawals from an IRA or pension plan?
- ❓Did you purchase your health insurance through a government insurance marketplace and qualify for an insurance premium subsidy? If your income subsequently increases, you may need to be prepared to repay some portion of the subsidy.
Real Estate Could Impact Your Taxes
- ❓Did you buy or sell a rental?
- ❓Did you start, acquire, or sell a business?
- ❓Did you buy or sell a home?
- ❓Did you refinance your home or take out a second home mortgage this year?
- ❓Did you, or are you planning to, make energy-efficiency improvements to your main home or install a solar system for your main or second home this year?
Changes in Your Business Could Impact Your Taxes
- ❓Have you made any significant equipment purchases for your business?
- ❓Are you planning to purchase a new business vehicle and dispose of the old one?
- ❓Are your cash and non-cash charitable contributions adequately documented?
- ❓If your expenses eligible for itemizing are less than the standard deduction, have you considered bunching charitable contributions so you can itemize this year and then use the standard deduction next year?
- ❓If you are a business owner, do you need to change how the business is organized to take full advantage of the 20% of qualified business income deduction?
Are You Keeping Up with Tax Compliance?
- ❓Are you keeping up with your estimated tax payments or do they need adjusting?
- ❓Have you stayed abreast of every new tax law change?
Don't Wait Until It's Too Late
If you anticipate or have already encountered any of the above events or conditions, it may be appropriate to schedule a mid-year tax check-up and consult with us—preferably before any of the events listed, and definitely before the end of the year.
Get ahead of the game—schedule your personalized mid-year tax check-up today and stay on top of your 2024 tax strategy!