By Lindsey Anderson, CPA
Senior Manager, Tax and Accounting Services
Email Lindsey
As a taxpayer, you can finally exhale — tax season is behind you. Maybe it’s time to take that Memorial Day weekend getaway. But before fully shifting into summer mode, it’s smart to use this post-season window to reflect and make changes that will better position you for next year.
Here are some steps to take during this post-tax season period:
Review your tax return and adjust accordingly.
If you owed a large amount when filing, it may be wise to increase your tax withholding or make estimated tax payments throughout the year. On the other hand, receiving a sizable refund might feel good, but it means you overpaid taxes throughout the year — essentially giving the government an interest-free loan. Instead, consider adjusting your withholding to better match your actual tax liability. You can use the IRS Tax Withholding Estimator or consult your CPA for assistance.
Reevaluate your financial strategy.
Post-tax season is a great time to revisit your overall financial picture. Review your budget, reassess savings goals, and make sure your investment and retirement strategies still align with your long-term objectives. If you’re self-employed or run a business, you may also want to reassess your bookkeeping process or financial software solutions.
Consider professional support.
Whether reviewing your individual tax return or analyzing your business’s financial performance, it’s worth considering whether you need additional support. More than half of U.S. taxpayers rely on tax professionals — especially as life events or business growth make finances more complex than DIY software can manage. If you’re a business owner, you may have outgrown your current bookkeeper but aren’t yet ready to hire a full-time CFO. In such cases, outsourcing your accounting or advisory needs to a firm like Sponsel CPA Group can provide cost-effective expertise.
Track deductible expenses throughout the year.
Don’t wait until next tax season to gather deductible expenses — track them in real time. For individuals, this may include property taxes, medical expenses (only those that exceed 7.5% of your adjusted gross income), and charitable contributions. For donations over $500, additional documentation may be required, so it’s important to maintain good records. Business owners should monitor deductible operating expenses and ensure receipts and records are kept in an organized manner.
Make quarterly estimated payments, if needed.
If you’re self-employed, have investment income, or expect to owe $1,000 or more in taxes, consider making estimated quarterly tax payments. This can help you avoid a large tax bill and potential underpayment penalties next April. Payments can be made easily online through the IRS Direct Pay system or via the IRS2Go mobile app.
Need assistance?
If you need help reviewing your tax return, adjusting your financial strategy, or improving your business’s financial reporting, we’re here to help. Please call us at (317) 608-6699 or email Lindsey.