End of Summer Tax Checkup

As summer winds down and we find ourselves midway through the year, now is an excellent time to reassess your tax situation. A proactive approach can help you avoid unwelcome surprises when tax season arrives next year. Many taxpayers file their returns only to discover they owe money instead of receiving a refund. This is particularly common among gig economy workers, those with a “side hustle,” and anyone earning income that isn't subject to regular withholding.

These individuals must review the taxes they have paid or withheld so far this year. Ensuring that your tax payments align with what you owe can save you time and reduce stress when it is time to file. Underpaying taxes throughout the year can lead to a tax bill and potential penalties—an outcome no one wants.

One effective way to prevent this is by adjusting your paycheck withholdings or increasing your estimated tax payments. This is especially important if you’re self-employed, have multiple jobs, or have experienced a major life change, such as getting married or having a child. Changes in income or deductions can significantly impact your tax liability, so it’s wise to reassess your situation periodically.

By taking these steps now, not only do you minimize the risk of penalties, but you also ensure that your financial house is in order. Proper tax planning today can spare you the headache of dealing with an unexpected tax bill later, making for a smoother and more manageable tax season. For more information, do not hesitate to get in touch with The Center for Financial, Legal, & Tax Planning Inc. professionals at (618) 997-3436.