Mid-year is an ideal time to review your personal taxes and adjust your strategy to maximize savings by year-end. Here are key tax tips to consider in July:
Adjust Your Withholding
If you received a large refund or owed more than expected last year, it might be time to adjust your withholding. You can use the IRS withholding calculator to ensure you’re on track.
Track Your Deductions
Take note of deductions you may be eligible for, like charitable contributions, mortgage interest, and medical expenses. Tracking them now makes it easier to prepare for tax time.
Maximize Retirement Contributions
Consider contributing more to your retirement accounts such as an IRA or 401(k). These contributions reduce your taxable income and set you up for a more comfortable retirement.
Plan for Capital Gains
If you're planning to sell investments or real estate, consider the timing. Capital gains taxes depend on how long you’ve held the asset, so think about how your sales might impact your tax situation.
By reviewing your personal tax situation now, you can make adjustments that will help you minimize your tax liability when it’s time to file.
Commentaires