Mid-Year Tax Checkup: What You Can Do This Summer to Save on 2025 Taxes

Frazier Law Team
Nashville, TN
June 13, 2025

As summer unfolds, it’s an opportune time to assess your tax situation and implement strategies to optimize your financial standing before the year’s end. Proactive mid-year tax planning can help you avoid surprises come tax season and potentially reduce your 2025 tax liability.

Adjust Your Withholdings

Life changes such as marriage, the birth of a child, or a new job can impact your tax obligations. It’s advisable to review your W-4 form to ensure your withholdings align with your current circumstances. The IRS provides a Tax Withholding Estimator to assist in this process.

Evaluate Estimated Tax Payments

For those with income not subject to withholding—such as self-employment income, dividends, or rental income—it’s crucial to make timely estimated tax payments. The next payment is due on September 15, 2025. Assess your income to date and adjust your payments accordingly to avoid penalties.

Maximize Retirement Contributions

Contributing to retirement accounts not only secures your future but can also provide immediate tax benefits. For 2025, the contribution limits are:

• 401(k): $23,500 (plus $7,500 catch-up for those 50 and older)
  
• IRA: $7,000 (plus $1,000 catch-up for those 50 and older)
  

Consider increasing your contributions to take full advantage of these limits.

Review Potential Deductions

Keep track of deductible expenses such as:

• Charitable donations
  
• Medical expenses
  
• Education-related costs
  
• Business expenses
  

Maintaining organized records throughout the year can simplify the deduction process when filing your taxes.

Reassess Life Events or Changes

Summer is a good time to pause and consider how recent events may affect your tax picture:

• Bought or sold a home?
  
• Launched or closed a business?
  
• Gained new dependents?
  
• Received an inheritance or major windfall?
  

Each of these life events could create significant tax implications. A mid-year strategy session can help you plan appropriately and avoid surprises later.

Consult with a Tax Professional

Tax laws and regulations are complex and ever-changing. Consulting with a tax professional can provide personalized advice tailored to your unique situation, ensuring compliance and optimizing your tax outcomes.

Contact UsIf you have questions about your tax situation or need assistance with tax planning, the experienced team at Frazier Law is here to help. Contact us at 615-510-4000 or visit our Contact Page to schedule a consultation.