Mid-Year Tax Checkup

Items for your summer checklist: go to the beach, get ice cream, cook on the outdoor grill, do a mid-year tax checkup. Taxes in the summer?! Yes! Keep yourself organized and on track with your financial goals by taking account of your tax situation throughout the year. We’re halfway through 2024, so it’s the perfect time to do a checkup. At Brannen CPA Services, our goal is to help our clients find their strength in numbers. One of the best ways to do that is to stay on top of your finances so you can plan ahead and prevent surprises come tax filing time. To help, this article outlines the action items for your mid-year tax check up.

Keep Your Files in Order

Staying organized throughout the year will help you be more prepared come tax season and may help you discover additional ways to save. Keep your receipts and records together in a file so everything is in one place. Now is also a good time to account for any life changes that may impact your tax filing, such as an address change, a job change, or the birth of a new child. Whether you have a bookkeeper or take care of your accounting yourself, having organized records that are up-to-date and accessible will give you a better understanding of your financial health. 

Review Your Retirement Savings

If you haven’t reviewed your retirement savings already, a Mid-Year Tax Checkup is the perfect time to take stock of your contributions to your 401(k) and Individual Retirement Accounts (IRAs). If your budget allows for it, think about maximizing your contributions to your retirement accounts before the end of the year. Not only will this help you save for your future, but the act of making pre-tax retirement contributions also reduces your taxable income.

Look at your Health Flexible Spending Arrangement (FSA)

A Flexible Spending Arrangement, or FSA, allows you to direct some of your pre-tax income toward qualifying medical and health-related expenses. Many FSAs expire at the end of the year, and you don’t want to lose the money you’ve put aside. Checking in on your account balance mid-year will help you make informed choices around your medical and health spending.

Regular reviews of your financial situation is a smart choice any time of year! It helps you avoid surprises and keep yourself on track with your financial goals. This summer, give yourself the gift of clarity and take stock of your financial situation. If you have questions or need to update the BCS team about some recent changes, please give us a call at 207.271.9600. We’re here to help you thrive!