August is the perfect time to review your year-to-date taxable income and allowed deductions for 2023, as well as factoring in your projected income and deductions for the remainder of the year.

Taking a look at your specific tax situation throughout the year helps to prevent any “tax surprises” next winter when you meet with your tax preparer.

If any of these items will apply to you in 2023, mid-year is the time to work through your planning opportunities:

  1. Did your marital status change?
  2. Did you switch jobs?
  3. Did you move from an employee position to being self-employed or vice versa?
  4. Did your private practice income significantly change from your earlier expectations?
  5. Did you lose your job and collect unemployment or take time off from work and receive Paid Family and Medical Leave Benefits?
  6. Did you exercise company stock options?
  7. Did you buy or sell your residence?
  8. Did you receive a large bonus from your employer?
  9. Did you realize large capitals gains?
  10. Did you begin collecting social security benefits or retire?

Taking control of your tax situation earlier in the year rather than later or not at all can help relieve the stress of a surprise tax bill next winter.

Contact your MDTaxes CPA to schedule a mid-year planning meeting to obtain their advice on options and to discuss the next steps to consider.