3 Reasons Smart Financial Plans Include a Mid-Year Tax Checkup

While a tax advisor can examine your tax return to reveal new opportunities, it’s a good idea to make it happen well before the end of the year.

Many people don’t think about taxes in the summer months. Not even once. Let’s face it… April 18 is long gone.

But smart planners understand the power of using a tax professional year-round. This strategy isn’t just about planning how you’ll pay taxes throughout the year, a mid-year tax checkup can actually equate to owing less in taxes next year.

You want to owe less? Here are three reasons smart planners schedule a mid-year tax checkup.

1 – You don’t know what you don’t know.

A review of your tax return can reveal many opportunities. You may think a tax return is simply a reflection of salary and certain financial events, but, in reality, it’s much more.

This can be hard to recognize, but tax law affects almost every area of our lives. Life changes all have tax consequences – and some can even be beneficial.

For example, if you begin contributing to a traditional IRA in addition to your 401(k), you could reduce your adjusted gross income. Even if you invest the smallest amount, you could qualify for several tax benefits. A tax advisor will identify this opportunity and advise you to better maximize your benefits.

You did the return yourself, but did you pay more taxes than you needed to? If you filed a return on your own using tax software, you may have nagging uncertainty that you didn’t take advantage of all the possible tax benefits or didn’t properly plan to reduce your overall taxable income?

You may be right to question yourself about this. That’s because most tax software is programmed for the tax preparation and filing transaction, rather than the long-term outlook. So while you may have succeeded in filing an accurate return, you could have also missed out on long-term strategies for minimizing taxes and maximizing savings.

2 – Advisors can forecast different scenarios customized to your situation.

Instead of guessing the best course of action for your tax situation, visiting a tax advisor offers an effective combination of experience, expertise, and tax planning tools that forecast different scenarios based on your details. For instance, you could discover that contributing a certain amount to a 401(k) or HSA unlocks other income-based benefits.

Tax planning is more than payment planning. A comprehensive, professional look at your situation not only takes the pressure off you to be your own financial and tax expert, but also maximizes your tax-reduction strategy for next year.

And forecasting future returns goes way beyond planning the right tax withholding or estimated tax payments. Tax planning goes further to reduce the taxes you’ll actually owe next April.

3 – Plotting your tax strategy in the summer gives you time to implement plans.

Too often, taxpayers find themselves scrambling last minute. Waiting until the end of the year to identify planning opportunities can be too late, or force you into making bad decisions to save a few dollars.

Reaching out to a tax advisor now for a review and consultation is a smart move. Then, you’ll have time during the year to make decisions and implement changes that you’ll benefit from next year.

Smart tax planners invest time in the summer to set and carry out a tax plan to the end of the year. Doing so means your will head into tax season with confidence instead of hoping for the best and you won’t be stuck with the nagging feeling that you paid more than you had to.

Block Advisors Can Help With a Mid-Year Tax Checkup

Tax planning can get complicated and often requires an expert’s touch. An experienced tax advisor can look at your situation from all angles to uncover your potential opportunities.

Block Advisors average 15 years of experience in tax preparation and planning and are here to help you all year long at any of our locations. To get started, set up your appointment today.


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