Mid-Year Tax Planning for Individuals

Continual changes to federal tax rules and economic vicissitudes such as fluctuating interest rates and inflation, can have a big impact on taxes. Planning to take advantage of deduction and credit opportunities can help to minimize taxes as well as meet income and property goals. The middle of the year is a good time to be certain that each individual’s situation has been evaluated so that planning can be custom-tailored to each client’s unique situation.

Earned Income Planning

Increases in minimum wage rates may boost employee compensation. Connecticut’s rate increased July 1, as did some other locations. Employees receiving pay increases due to a higher minimum wage rate or any other reason should review their wage withholding. Also assess the impact of higher compensation on other tax rules, such as eligibility for making Roth IRA contributions.