June is the ideal time to review your year-to-date (YTD) financial performance, allowing proactive adjustments that prevent unpleasant tax surprises next spring. By mid-year, roughly half of the year’s income and expenses are known, providing a clear snapshot for projecting annual results and fine-tuning strategies.
WITHHOLDING ACCURACY
Compare YTD pay stubs with projected annual income to confirm that federal and state withholdings align properly. If under-withheld, clients risk penalties or large April bills; if over-withheld, they miss interest-free cash flow.
ESTIMATED TAX PAYMENTS
With the Q2 deadline on June 15, you should verify that you have the correct vouchers or access to the IRS Direct Pay portal to submit payments on time and avoid underpayment penalties.
LIFE EVENTS
Have you experienced any major life events this year? Such as marriage, divorce, a new child, or a home purchase, which can significantly alter tax liability. These changes often require immediate W-4 adjustments or other steps to stay compliant and optimized.
This mid-year review empowers you to course-correct early, ensuring a smoother tax season ahead.