Summer Tax Tune-Up: 5 Tips to Help You Save

Summer isn’t just for vacations and barbecues — it’s also the perfect time to revisit your tax strategy and set yourself up for a smoother, more stable year ahead.

Here are five essential mid-year tax tips to keep your finances in top shape.

1. Adjust Tax Withholding and Payments

Changes in income — like starting Social Security or withdrawing from retirement accounts — can affect your tax liability. Reassess your withholding or estimated payments now to avoid penalties or overpayments. If you need assistance, we can help you adjust and keep things on track.

2. Max Out Retirement Contributions

Take advantage of the extra $7,500 catch- up allowance for workplace plans if you’re 50 or older. Consider topping off a Roth or Traditional IRA if you have earned income. These moves can either lower your taxable income or grow your savings tax-free, depending upon the account type.

3. Donate Smarter

If you’re 70½ or older, use qualified charitable distributions (QCDs) to donate directly from your IRA without adding to taxable income. Younger retirees can explore options like donating appreciated stock or grouping gifts to exceed the standard deduction.

4. Plan Your RMDs

If you’re 73 or older, make sure you’ve factored in required minimum distributions (RMDs). Missing them can trigger penalties, and consolidating accounts could simplify calculations. Redirect unneeded RMDs to reinvestments or even save for grandkids’ education.

5. Claim Energy Tax Credits

Upgrading to energy-efficient home improvements like solar panels or heat pumps can lower your utility bills and provide tax savings. Federal credits for 2025 offer up to 30% of the cost.

Beat the (Tax) Heat

Mid-year tax planning doesn’t have to be overwhelming, especially with the right guidance. We’re here if you’d like to discuss these strategies and ensure you’re on the best path for a financially stress-free 2025.