Midyear Money Move: Your 15-Minute Tax Tweak
For most of us, taxes don’t make the list of our favorite things. But rather than ignoring them until it’s time to file again, there’s a small, impactful step you can take midyear to set yourself up for a surprise-free tax time.
Whether you work a full-time job, run your own business, or have multiple streams of income, June is an opportune time to make sure you’re on track with your tax withholding. Why midyear? You have enough income history to make a solid estimate and enough time remaining in the year to make adjustments.
The IRS Tax Withholding Estimator is a free, user-friendly tool that helps you figure out whether too much or too little is being withheld from your paychecks. It takes about 15 minutes, and you’ll need your most recent pay stub or income records.
If you’re 100% self-employed, use the resources on this page of the IRS website to determine if your estimated quarterly taxes are accurate.
Here are three smart reasons to add this midyear money move to your recurring task list:
No surprises
Nothing feels worse than owing an unexpected amount on your taxes. Use the tools available to you NOW to make changes while there’s still time to have an impact. It’s a smart money move!
Don’t give the government an interest-free loan
A big tax refund might feel like a bonus, but what it really means is that your money isn’t working for you; it’s working for Uncle Sam. Don’t overpay all year! You can use that extra income to pay down debt, invest, or stash it into a high-yield savings account.
Gain peace of mind
Know exactly where you stand by using this process, making needed adjustments, and creating a plan that works for you. Ignoring or avoiding the topic of your taxes takes away your power to make sound decisions while there’s still time to react.
This 15-minute tax tweak is a step to help future you feel confident at tax time. I created a flowchart you can use to walk through the process. It includes links! Download the PDF HERE.
While you’re at it, why not make your money work harder for you? Join my free MONEY MATTERS list to receive a monthly email, each with a different money-related challenge, that helps you build your money mindset and grow your personal wealth.
The purpose of this post is to provide information and education (& hopefully some entertainment!). I am not a financial, medical, or mental health professional, so please do not interpret my words as the direction of a financial planner, doctor, or therapist.
I know you're smart and will ALWAYS consult with your physician or another appropriate, accredited professional before implementing any changes to your investments, diet, medication, lifestyle, exercise regimen, supplement regimen, or health practices. After all, you're here to live well, right??
Seriously - consult with your financial or healthcare team and assess your own risk. Verify what you find on the internet. I care about you!
