What Should I Be Doing Mid-Year to Prepare for Next Tax Season ?

Midyear is the sweet spot for getting ahead of tax season. You’re far enough from April to breathe, but close enough to make smart moves that actually save you money. A little organization now can prevent stress — and surprise tax bills — later.

Here’s what every individual and small business owner should be doing right now.

1. Review Your Withholding or Estimated Taxes?

If you’ve had any changes this year — new job, raise, side hustle, marriage, kids — your tax situation has changed too.

• W2 employees: check your W4

• 1099 workers: review your quarterly estimated payments

• Side hustlers: make sure you’re setting aside 25–30% of income

A quick midyear check can prevent an April tax bill.

2. Clean Up Your Bookkeeping

This is the #1 area where people fall behind.

Midyear is the perfect time to:

• Categorize expenses

• Reconcile bank accounts

• Separate personal and business spending

• Upload receipts

• Review profit & loss

If you’re six months behind, you’re not alone — but now is the time to catch up.

3. Track Your Mileage & Business Expenses

If you drive for work or run a business, mileage is one of the biggest missed deductions.

Make sure you’re tracking:

• Business miles

• Supplies

• Software

• Meals

• Home office expenses

• Equipment purchases

A simple app or spreadsheet can save you hundreds.

4. Check Your Retirement Contributions

Midyear is a great time to adjust:

• 401(k) contributions

• IRA or Roth IRA plans

• SEP or Solo 401(k) for business owners

Even small increases now can make a big difference by yearend.

5. Look Ahead to YearEnd Tax Moves

Some tax strategies only work if you plan ahead.

Start thinking about:

• Charitable giving

• Equipment purchases

• Health savings account (HSA) contributions

• Education expenses

• SCorp salary adjustments (if applicable)

Planning now gives you options later.

What This Means for You

Midyear planning is your chance to get organized, reduce stress, and save money before tax season sneaks up. Whether you’re a W2 employee, a business owner, or somewhere in between, a quick checkin now can make next April feel easy.

If you want a personalized midyear review, RLA can walk you through everything step by step.

---