Smart Mid-Year Moves

June is one of the most overlooked opportunities for tax planning. While most people don’t think about taxes again until the next April crunch, the smartest financial moves happen now, when there’s still time to make meaningful adjustments.

Below is a practical, easy‑to‑follow guide for your mid-year review.

1. Review Your Withholding and Estimated Taxes

A mid‑year check helps you avoid two headaches: a surprise tax bill next April, or giving the IRS an interest‑free loan.

This is especially important if you:

Changed jobs
Received a raise or bonus
Started freelancing or consulting
Have RSUs or stock compensation
Bought or sold a home

2. Maximize Tax‑Advantaged Accounts Before It’s Too Late

Check whether you’re on track to max out on:

401(k) or 403(b) contributions
HSA contributions (if you have a high‑deductible plan)
IRA contributions
Dependent Care FSA spending
Commuter benefits

3. Evaluate Your Income Strategy (Especially for RSUs & Bonuses)

Employees who receive these benefits are often pushed into a higher tax bracket, if not properly planned for:

RSUs
ESPP shares
Performance bonuses

Mid‑year is an ideal time to:

Estimate your total income
Plan for RSU vesting events
Strategically time sales
Avoid underpayment penalties

4. Check on Deductions and Credits

Many deductions and credits require action during the year, not after. It's a good idea to review whether you’re on track for these items so there's time to adjust before the end of the year:

Charitable giving
Energy‑efficient home improvements
Education credits (for parents of college students)
Child tax credits
Mortgage interest and property tax planning
Business deductions (for self‑employed)

5. Plan for Life Changes Before They Affect Your Taxes

The following events can change your tax picture dramatically. If you have experienced or plan to experience one of these events prior to the end of the year, let's look at making adjustments.

Marriage or divorce
Having a child
Buying or selling a home
Starting a business
Inheriting assets
Relocating (even within California)

6. Review Your Investment Strategy With Taxes in Mind

A mid‑year portfolio check can help you:

Identify tax‑loss harvesting opportunities
Rebalance to avoid unnecessary capital gains
Review municipal bond options (especially helpful for CA residents)
Ensure your investments align with your tax bracket

California’s high‑income households often benefit from California‑specific tax‑efficient strategies.

Note: Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

7. Prepare for Year‑End Before It Sneaks Up

The biggest tax mistakes happen when people wait until November or December to act. A mid‑year planning review gives you time to:

Increase retirement contributions
Make charitable gifts
Adjust estimated payments
Plan business expenses
Review your CPA’s recommendations from last year

Why Mid‑Year Tax Planning Matters, Especially in California

California residents face unique financial realities:

Higher state income taxes
Higher cost of living
More stock‑based compensation
More self‑employed and small‑business income
More military families with special tax rules

These California‑specific factors can quietly push people into higher tax brackets, create unexpected tax bills, and limit the deductions they thought they’d qualify for, all without them realizing it until it’s too late. Mid‑year planning gives you time to adjust income, withholding, and strategy before the year is locked in, which can save thousands and prevent April surprises.

We cover these topics during our mid-year check-in, but it's important you do your homework to gather information and supporting documents to assist us in planning the rest of the year with precision. We will walk through your tax strategy, income planning and investment adjustments and help you make any changes to keep you on track for a strong year-end.

This content is developed from sources believed to be providing accurate information, and provided by Wealth Manager Group. It may not be used for the purpose of avoiding any federal tax penalties.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

LPL Financial and LPL representatives do not provide tax or legal advice.