Half the Year Is Almost Over—Is Your Tax Strategy Keeping Pace?
Half the Year Is Almost Over—Is Your Tax Strategy Keeping Pace?
When most people think about taxes, they think about April. Smart taxpayers think about right now.
The middle of the year is one of the best times to review your tax strategy. Why? Because you have six months of real financial data to work with—and six months left to make meaningful changes before year-end.
Whether you’re a business owner or an individual taxpayer, a mid-year check-in can help you reduce surprises, uncover savings opportunities, and finish the year with confidence.
For Business Owners-Is Your Tax Strategy Keeping Pace?
Review Your Estimated Tax Payments
Has your income changed since last year? Whether business is booming or you’ve experienced a slowdown, your quarterly estimated tax payments may no longer be accurate.
Taking a fresh look now can help you avoid underpayment penalties or overpaying throughout the year. Remember, the next estimated tax payment is due September 15.
Maximize Your Qualified Business Income (QBI) Deduction
If you own an S corporation, LLC, or partnership, you may qualify for the 20% Qualified Business Income (QBI) deduction.
Recent tax law changes have made this deduction permanent, making now the perfect time to review your business structure and income strategy to ensure you’re taking full advantage of it.
Plan Equipment Purchases Strategically
Thinking about purchasing new equipment, technology, machinery, or a business vehicle?
With 100% bonus depreciation once again available for qualifying property, the timing of those purchases could significantly impact your tax bill. Planning before you buy can make a big difference.
Check Your Retirement Contributions
Your future self will thank you.
Mid-year is an excellent reminder to review your retirement savings. Business owners have several powerful options—including SEP IRAs and Solo 401(k)s—that can help build retirement savings while reducing taxable income.
For Individuals-Is Your Tax Strategy Keeping Pace?
Review Your Tax Withholding
Life changes can affect your taxes more than you might realize.
If you’ve changed jobs, received a bonus, sold investments, or experienced another major financial event, your withholding may need adjusting. A quick mid-year projection can help prevent an unexpected tax bill next spring.
Take a Tax-Smart Look at Your Investments
Mid-year is an ideal time to review your investment portfolio with taxes in mind.
Consider whether unrealized losses could offset capital gains, and think strategically about the timing of any planned investment sales before year-end.
Don’t Overlook Gifting Opportunities
If estate planning is part of your long-term financial strategy, you don’t have to wait until December to begin.
In 2026, you can give up to $19,000 per recipient each year—or $38,000 for married couples who elect to split gifts—without using your lifetime gift tax exemption. Planning early gives you more flexibility and helps keep your overall financial strategy on track.
The Bottom Line
The second half of the year will be here before you know it. A proactive tax review today can help you uncover savings opportunities, avoid costly surprises, and make informed financial decisions while there’s still time to act.
The best tax strategies aren’t created during tax season—they’re built throughout the year.
If you’re unsure whether your current tax plan is still working for you, now is the perfect time to schedule a mid-year tax planning review. A little planning today can make a big difference when tax season arrives.
Contact Us
If you have questions about the information outlined above, or need assistance with another tax or accounting issue, John Pharr CPAs can help. For additional information call 850-435-8844. We look forward to speaking with you soon.
Helpful Links:
IRS Tax Cuts and Jobs Act Information
IRS One Big Beautiful Bill: Business Tax Provisions Webinar Transcript
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