.png)
Get ahead of your 2025 taxes with these 5 mid-year strategies. Learn how to adjust withholdings, boost retirement savings, reduce your tax bill, and more.
The halfway point of the year is the perfect time to take a financial pulse check. If you’ve been putting off tax planning until year-end—or worse, tax season—you may be missing key opportunities to save money, reduce stress, and avoid penalties. At Vincere Tax, we believe tax strategy isn’t a one-time event—it’s a year-round mindset.
With Q3 underway, here are five impactful mid-year tax planning moves to make now to ensure your 2025 tax year ends with fewer surprises and more money in your pocket.
If you’ve had any financial changes this year—new job, raise, freelance side gig, or significant investment income—it’s time to revisit your tax withholding or estimated payments.
The IRS updated income tax brackets, standard deductions, and thresholds for 2025. If you’re not aligned with these changes, you may be under- or overpaying taxes.
Use the IRS Tax Withholding Estimator to determine if you’re on track. For those with self-employment or gig income, ensure your quarterly estimated payments are aligned with your current income trajectory.
📌 Example:
Emily started earning $2,000/month from consulting in addition to her day job. By recalculating her estimated payments mid-year, she avoided a surprise tax bill and penalty come April.
📆 2025 Estimated Tax Payment Deadlines
One of the easiest ways to reduce your taxable income is by contributing to retirement accounts—and the earlier in the year you do it, the more your money grows.
.png)
(Source – IRS 2025 Retirement Plan Limits)
Don’t wait until December. Spreading your contributions across the remaining months gives your investments more time to grow and lowers your risk of missing the deadline.
📌 Example:
Mark, 52, realized in July he was behind on his 401(k). By increasing his payroll contributions for the rest of the year, he reached the full $31,000 limit (standard + catch-up) by December.
🔁 Your state retirement rules may vary. Always double-check local limits and tax treatment with your advisor.
Tax-loss harvesting isn’t just for December. Mid-year is a smart time to review your portfolio and offset capital gains with any underperforming assets.
You can use up to $3,000 of net capital losses to offset ordinary income each year. Losses beyond that carry forward to future years. And with continued market volatility, smart timing can yield major savings.
(IRS Publication 550 – Investment Income and Expenses)
Avoid the “wash sale rule,” which disallows losses if you buy a “substantially identical” asset within 30 days. Work with a tax pro or financial advisor to strategize tax-efficient rebalancing.
📌 Example:
In July, Anna sold a tech ETF at a $5,000 loss to offset earlier gains from real estate investments. She immediately reinvested in a similar but not identical ETF to stay invested, preserving her market position while reducing 2025 taxes.
If you’re enrolled in an FSA or HSA, now’s the time to check balances and ensure you’re optimizing these powerful tax-advantaged tools.
(IRS Publication 969 – HSAs and Other Tax-Favored Health Plans)
FSAs are use-it-or-lose-it for most employers. Schedule dental work, vision care, or other qualified expenses now to avoid forfeiting funds. HSAs, on the other hand, don’t expire and can be a powerful retirement asset.
📌 Example:
Carlos realized in August he had $1,400 left in his FSA. He booked a dental cleaning and new glasses before year-end, using funds he would’ve otherwise lost.
Charitable donations are about more than goodwill—they can significantly reduce your tax burden, especially if you itemize deductions.
The standard deduction remains high, so many taxpayers don’t itemize. But with smart planning, you may still benefit from charitable giving:
(IRS Topic No. 506 – Charitable Contributions)
If you’re close to the itemization threshold, track all donations carefully and consider using a Donor-Advised Fund (DAF) to control timing and deductions.
📌 Example:
The Thompsons donated $20,000 in appreciated stock to a DAF in 2025. This allowed them to itemize for the first time in years while avoiding capital gains tax on the stock’s growth.
Here’s a quick reference guide to what you should review now:
Each step can help reduce your tax liability and avoid year-end stress.
Too many people treat taxes as a once-a-year scramble. By planning in Q3, you unlock:
The second half of the year is a golden window to get your financial house in order. By acting now, you’ll be ahead of the pack and in a stronger position come April 2026.
At Vincere Tax, we help individuals and business owners turn mid-year moves into year-end wins. Whether it’s optimizing your retirement strategy, reducing your tax bill, or planning for major life changes, our expert CPAs are ready to guide you.
👉 Book your complimentary Q3 tax strategy session here.
You may face penalties, but adjusting now for Q3 and Q4 can limit the damage. Use IRS Form 2210 to calculate any penalty or talk to a tax professional to review your options.
Only if your deductions exceed the standard deduction. Bunching donations or paying property taxes early could help you reach that threshold.
Yes—HSA contributions are pre-tax, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.
Yes, most employers allow adjustments anytime. Check your HR portal or payroll system and maximize savings before year-end.
For 2025, Q3 estimated payments are due September 15, 2025. Avoid interest and penalties by submitting on time.
Being audited is comparable to being struck by lightning. You don't want to practice pole vaulting in a thunderstorm just because it's unlikely. Making sure your books are accurate and your taxes are filed on time is one of the best ways to keep your head down during tax season. Check out Vincere's take on tax season!
This post is just for informational purposes and is not meant to be legal, business, or tax advice. Regarding the matters discussed in this post, each individual should consult his or her own attorney, business advisor, or tax advisor. Vincere accepts no responsibility for actions taken in reliance on the information contained in this document.
For business tax planning articles, our tax resources provides valuable insights into how you can reduce your tax liability now, and in the future.
.png)
At Vincere Tax, we've got the skills and know-how to craft a unique, tailored plan just for you. Trust us – we've got the expertise to make it happen!
Speak with an expert Website Terms.png)
.png)
.png)
Copyright © 2025 Vincere Tax| All Rights Reserved
Privacy Policy
.png)
.png)
