2025 Mid-Year Tax Planning

With half the year complete, now is the ideal time to review your tax position and implement strategies to minimize your 2025 tax liability.

Mid-Year Review Checklist

Compare year-to-date income against projections. Review estimated tax payments for adequacy. Evaluate timing of major transactions. Assess retirement contribution progress. Identify tax-loss harvesting opportunities.

Income Projection

Project your full-year income based on first-half results. Unexpected windfalls or shortfalls may require strategy adjustments. If income is running higher than expected, consider accelerating deductions. If lower, you may want to accelerate income while you're in a lower bracket.

Estimated Tax Adjustments

If your income has changed significantly from initial projections, adjust Q3 and Q4 estimated payments to avoid penalties or excessive overpayment. The safe harbor requires paying at least 100% of prior year tax (110% for high earners) or 90% of current year tax.

Retirement Contributions

Are you on track to maximize retirement contributions? If not, increase contributions in the second half. Self-employed individuals should review Solo 401(k) or SEP contribution calculations.

Capital Gains Review

Review investment portfolios for gains and losses. Strategic realization of losses can offset gains. Consider long-term vs. short-term holding period implications.

Business Owner Actions

Review equipment purchase plans against depreciation strategies. Evaluate whether entity structure changes are beneficial. Assess reasonable compensation levels for S-Corp owners. Plan for QBI deduction optimization.