Tax Season’s Over—Now What? Smart Tax Planning for the Rest of the Year

By Vicki Jovanovic, AAMS

With tax season behind us, many people breathe a sigh of relief and set taxes aside until next April. But now is one of the best times to get ahead of the game while changes you should make are fresh. Strategic tax planning throughout the year can help reduce next year’s tax bill, prevent unpleasant surprises, and position you for better financial outcomes.

Here are several smart, actionable steps to take now:

1. Revisit Your Withholding

If your tax bill this year was much higher or lower than expected, it might be time to adjust your paycheck withholding. Use the IRS withholding calculator or talk to your tax advisor to fine-tune your W-4. Small tweaks now can mean more take-home pay or a smaller bill next year.

2. Increase Retirement Contributions

One of the simplest and most effective ways to reduce taxable income is to contribute more to tax-advantaged retirement accounts:

401(k) limit for 2025: $23,000 (plus $7,500 catch-up if you're 50+)
SIMPLE IRA Limit for 2025: $16,000 (plus $3,500 catch-up if you're 50+)
IRA limit for 2025: $7,000 (plus $1,000 catch-up if 50+)

Not only are you saving for your future, but you’re potentially lowering your current tax burden.

3. Evaluate Estimated Payments

If you're self-employed, have significant investment income, or earn side income, ensure your quarterly estimated tax payments are accurate and timely. Underpaying can result in penalties, while overpaying unnecessarily ties up your cash.

4. Stay Organized with Deductions

Now’s the time to start tracking potential tax-deductible expenses:

Charitable donations
Medical and dental expenses
Home office expenses
Educational costs

Keep receipts and documents in a central folder or digital organizer—your future self will thank you.

5. Explore Roth Conversions

If you're in a relatively low tax bracket this year, consider converting a portion of your traditional IRA to a Roth IRA. You’ll pay taxes on the conversion now, but future withdrawals will be tax-free. This strategy is especially helpful for retirees in lower-income years or those expecting higher future tax rates.

6. Plan for Capital Gains and Losses

Mid-year is a good time to review your investment portfolio. If you’ve sold assets at a gain, you might want to harvest some losses to offset those gains. This tax-loss harvesting strategy can help minimize your tax liability while keeping your portfolio balanced.

7. Check In with a Pro

Even if your tax situation seems straightforward, it’s worth connecting with your tax advisor and your financial advisor mid-year. They can help identify opportunities and tailor a strategy that fits your unique circumstances.

Bottom Line: Don’t wait until December—or worse, next spring—to think about taxes. A little planning now can lead to major savings later. Whether it's tweaking your withholdings, boosting retirement savings, or looking for deductions, these mid-year strategies can keep you on track financially and help you feel more confident about what’s ahead.

Whether you have a quick question or want to dive deeper into your tax strategy and financial goals, we’re here for you.

Give us a call at 360-464-2025 to schedule a time to chat. Let’s make the rest of your year as smooth—and tax-smart—as possible.