As we approach the end of summer, it’s an ideal time to review your tax situation and make any necessary adjustments to avoid unexpected surprises when you file your return next year. At BrilTax, we recommend this mid-year check-up to ensure you’re on track with your tax obligations.
Who Should Pay Special Attention?
While everyone can benefit from a mid-year tax review, certain individuals should be particularly vigilant:
- Gig economy workers
- Those with side hustles
- Anyone earning income not subject to withholding
If you fall into one of these categories, it’s crucial to review your tax withholding or estimated tax payments to ensure they align with your actual tax liability.
Understanding the Pay-As-You-Go System
The U.S. tax system operates on a pay-as-you-go basis. This means you’re expected to pay taxes as you earn income throughout the year, either through withholding from your paycheck or by making quarterly estimated tax payments.
While receiving a large refund might seem appealing, it essentially means you’ve given the government an interest-free loan. On the flip side, underpaying throughout the year can result in penalties when you file your return.
When to Reassess Your Tax Situation
Beyond this mid-year check-up, it’s wise to review your tax situation whenever you experience significant life changes, such as:
- Starting a new job or side business
- Getting married or divorced
- Having a child or adopting
- Buying a home
These events can significantly impact your tax liability, and proactive adjustments can help you avoid surprises at tax time.
How We Can Help
At BrilTax, we specialize in helping individuals and businesses navigate the complexities of the tax system. If you’re unsure about your current tax situation or need assistance making adjustments, we’re here to help. Our team of experienced tax professionals can provide personalized advice to ensure you’re optimally positioned for the upcoming tax season.
Don’t let tax season catch you off guard. Contact us today to schedule your mid-year tax review and take control of your financial future.
