The mad dash is over, it’s a great time to take a fresh look at your financial picture. Use this quieter stretch to assess, adjust, and plan:
1. Review Your Return
The rush has passed; review a copy of your filed return. Take note of where your income came from, which deductions and credits you used, and whether you owed or received a refund. These patterns offer insight into your financial habits. Also, consider what questions your tax preparer had for you after you submitted your documents so you can better prepare next year.
2. Set a System for Record-keeping
We’re nearly five months into the year—if you haven’t yet created a system to stay organized, now is the time! Tax-related items: donation receipts, business expenses, medical costs, and other potential deductions can be stored digitally or in the tried-and-true file cabinet. A little effort now avoids last-minute scrambling and helps ensure nothing is missed.
3. Adjust Withholding or Estimated Payments
If you owed taxes or received a large refund, update your W-4 or quarterly estimates. The goal is a more accurate match between what you owe and what you pay throughout the year.
4. Revisit Retirement Contributions
Maxing out contributions to IRAs or employer-sponsored plans benefits your future and may reduce next year’s tax liability. Check contribution limits and make a plan.
5. Plan for Life Changes
Anticipating a move, a new job, marriage, or a dependent? These events impact your taxes. Planning ahead can reduce surprises and improve outcomes.
6. Set Financial Goals
Tax season brings financial clarity. Apply that momentum to long-term plans for saving, debt reduction , and investing.
A tax return is more than a filing obligation—it’s a snapshot of your financial life. Use it to make informed decisions for your future.