Mid-Year Tax Planning – Staying Up to Date
Changes in your life may affect your taxes.
Mid-year is the perfect time for tax planning. The following are some events in your life that can affect your tax return. Acting promptly, and being prepared for change by planning ahead can lessen any unpleasant surprises at tax time:
- Are wedding bells in your future? Did you divorce or become a widow(er)?
- Have you changed your employment? Did your spouse start a new job?
- Has your income level changed?
- Did you have a gain from the sale of stocks or bonds?
- Did you invest in or sell a rental property?
- Did you start up a new business? Did you sell a business?
- Did you buy or sell a home?
- Are you retiring this year?
- Were you able to refinance your home or take out a second home mortgage this year?
- Did you receive an inheritance this year?
- Do you have children? Do you have a tax-advantaged savings plan in place?
- Are you taking advantage of your tax-advantaged retirement savings?
- Have you purchased any new equipment for your business?
- Are you planning to purchase a new vehicle for your business and dispose of the old one? It makes a significant difference whether you sell or trade-in the old vehicle.
- Do you have documentation to prove your cash and non-cash charitable contributions?
- Are you making your estimated tax payments? Do you need to make estimated tax payments?
- 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 unexpected withdrawals from your IRA or pension plan?
- Have you stayed abreast of the new changes to the tax laws?