As summer settles in and schedules fill up, a few smart decisions now can help you avoid costly surprises later. There are strategies to strengthen your financial footing, including a midyear tax planning review. With all the complexity of the tax code today, it is easy to put off reviewing your situation. On the other hand, you have time to implement some great tax-saving ideas. Here are several strategies to consider during a midyear tax review.

Midyear tax review

1. Create midyear tax records. Good recordkeeping is one of the best ways to protect valuable tax deductions. Maintain documentation for expenses such as charitable donations, childcare costs, medical expenses, business mileage, travel expenses, and gambling losses. Establishing a reliable system now can save time and stress later. Also consider taking advantage of the new above-the-line charitable donation of up to $2,000 ($4,000 if married) while there is still plenty of time.
2. Boost retirement savings. Retirement contribution limits remain generous, giving you an opportunity to increase tax-advantaged savings before year-end. For 2026, eligible taxpayers can contribute up to the annual IRS limit for employer-sponsored retirement plans and IRAs, with additional catch-up contributions available for individuals age 50 and older. Increasing contributions may lower taxable income while helping strengthen long-term financial security.
3. Review education savings options. If you’re saving for a child’s education in a regular investment account, consider whether a 529 education savings plan could provide tax advantages. Earnings in these accounts grow tax-deferred, and withdrawals are generally tax-free when used for qualified education expenses. Starting earlier allows more time for potential tax-advantaged growth.
4. Update withholding and estimated taxes. Major life changes, such as marriage, divorce, a new job, or changes in income, can affect how much tax you should pay throughout the year. Reviewing your withholding and estimated tax payments now may help you avoid underpayment penalties or an unexpectedly large balance due next spring. At the same time, avoiding overpayment can improve cash flow during the year.

Tax planning assistance

A proactive tax review can help uncover opportunities and minimize costly mistakes. Contact our RRBB advisors if you would like assistance with midyear tax-planning strategies tailored to your situation.