Mid-Year Tax Planning: Why Review Your Taxes & Finances in June?

Very few people enjoy the “puzzle” that is taxes. While the tax code may be a puzzle, it can be profitable if you understand the rules and maximize your tax savings. Plus, the more you plan, the more you can avoid the stress of tax preparation after the year is over.

Your dread of taxes most likely comes from a lack of understanding—and you’re not alone! However, you can begin reducing that stress by educating yourself. Take a 15-minute break this summer to review your two-page Form 1040 and understand the basic formula: income, deductions, credits, and tax calculation.

But tax season is still a ways away…why do I need to plan and review now? Good question! Since we’re halfway through the year, now is the opportune time to assess your income and tax payments. Besides, the next six months will fly by before you know it, and you don’t want unpleasant surprises come tax season.

Keep reading for more tips on conducting an effective summer tax review for W-2 employees, business owners, and retirees.

W-2 Employee

If you are a W-2 employee, your wages most likely drive the numbers on your tax return. This mid-year point is the perfect time to ask yourself:

When you answer these questions, you’ll be in a better position to predict whether your tax planning is on track. And if you’re expecting any significant life events in the second half of the year (e.g., marriage, divorce, birth/adoption of a child, or purchasing a home), consider how they may impact your tax situation.

Business Owner

Your income and taxes might vary more as a business owner, but no one can run a business without some planning. Include taxes in this planning. During your summer tax review, consider:

  • How your business is performing
  • How you are paying your taxes
  • Where you expect to end the year
  • Your business expenses—have they all been properly categorized and documented?

For example, if you make estimated tax payments, review those you’ve paid for the year to date. Consult with your tax accountant to confirm your payments align with your current income and profit levels, and adjust if necessary.


If you’re enjoying retirement, your largest variable is likely the taxation from your investments. Take this time to:

Of course, you don’t have to calculate and strategize your retirement investments and activity on your own. Schedule a mid-summer meeting with your advisor to review all the taxable investment activity and ensure you’re on track.

Make Tax Planning a Consistent Practice

Summer is a great time to talk with your tax professional because they are less busy at this time of year. Review your situation, ask the questions above, and book that check-in. Also, ensure you’ve opened the lines of communication between your tax professional, your accountant/bookkeeper (if applicable), and your financial advisor so all three can get on the same page and prioritize your goals.

Monitoring your financial and tax activity regularly throughout the year, particularly with a review at the halfway point, is an effective way to avoid surprises and significant stress during the next tax season!

Do you have questions about your investments and tax implications, or need guidance on your financial goals? Speak with a Carlson Investments advisor today for personalized assistance.

Carlson Investments does not provide tax, legal, or accounting advice. This content has been written for informational purposes only. Always consult your individual tax, legal, or financial professionals for advice tailored to your situation.

Let's Talk

Finding a better way doesn’t start with you learning about investment strategy. It starts with us learning about you.

Let’s get started.

Contact Us