It’s Never Too Early!
As we near the second half of the year, now is the ideal time to take a closer look at your tax situation. A few smart moves before December 31st could make a big difference when it’s time to file. Here’s what to review now to stay ahead.
Review Any Life Changes
• Have you had any life changes—new job, side income, or family additions? Life changes often mean tax changes. Use the IRS withholding calculator to see if you need to adjust your estimated payments.
Perform a Tax Document Check
• Create a digital or physical folder labeled “2025 Taxes”.
• Start saving key items like charitable donation receipts, medical bills, and mileage logs.
• Scan and back up documents as they go.
Maximize Retirement Contributions
• If you haven’t contributed to your 401(k) or IRA yet this year, now’s a great time to start. These contributions can lower your taxable income and help you build long-term wealth.
Itemizing vs. Standard Deduction
• Take a moment to project whether itemizing will make sense for you this year. If you’re close to the threshold, there is still time to bundle deductions like charitable giving or medical expenses.
Health Savings Accounts (HSA)
• Consider contributing the maximum allowed for the year—these accounts offer triple tax advantages: pre-tax contributions, tax-free growth, and tax-free withdrawals for qualified expenses.
Track Capital Gains & Losses
• If you’ve sold or are planning to sell investments, make note of your gains or losses. You may be able to offset gains with losses—just make sure you understand the rules.