With the tax season a distant memory and summer already here, you have probably stopped thinking about taxes and are busy planning your annual vacation; however, midyear is also a good time for a tax checkup. With time left before 2026 ends, you still have a window to identify and address any tax issues or execute any planning opportunities that can affect your tax liability.
Get organized
A first step for an effective tax checkup is to ensure all your financial and tax records are in order. Gather documents related to your income, investments, retirement distributions, charitable contributions, medical expenses, and other financial activity during the first half of the year. Maintaining comprehensive records can help you prepare an accurate tax return and support any deductions, credits, and other tax benefits.
You should also review your personal information. If you have moved, update your current address with the IRS. If your name changed, provide that new information to the Social Security Administration because a mismatched tax filing and Social Security record may delay your tax return. If you have an online IRS account, be sure to update any changes there as well. An online IRS account allows you to review your tax records and payment history, make payments, and view any agency notices.
Review your paycheck and other income
You may want to evaluate the amount of federal income tax you are having withheld. For example, if you owed income tax for the prior tax year, your withholding may be too low. You may want to rectify this by increasing your withholding on Form W-4 and submitting the form to your employer.
If you own a business or are a freelancer or gig worker, you may benefit from reviewing income and expenses now rather than at the end of the year. Gathering, organizing, and maintaining these additional income records throughout the year is much easier than reconstructing them at the end of the year.
Assess your retirement contributions and distributions
A midyear tax checkup may be an opportunity to determine if you need to modify your retirement plan contributions based on a change in your financial situation, for example, a salary increase or a life change, such as turning 50. If you are earning more income, you may wish to increase your contribution to your company’s retirement plan; if you turned 50 at the beginning of the calendar year, consider taking advantage of catch-up contributions that allow you to save more beyond the standard limits of your retirement account. Either way, increasing these contributions midyear may help reduce your tax liability.
If you are approaching retirement or have retired during the year, you may want to assess any distributions from retirement accounts to ensure they are reported correctly and sufficient tax is being withheld. A midyear review gives you time to make any necessary adjustments to possibly lower your tax burden.
Examine investment income
Halfway through the year is a practical time to evaluate anticipated capital gain distributions, dividends, and interest income from your investment accounts. Analyzing these transactions allows you to estimate your annual investment income before the end of the year and implement strategies to potentially offset gains, like using tax-loss harvesting. This proactive planning can help manage your overall tax liability and may prevent unexpected year-end distributions from pushing you into a higher income tax bracket.
Evaluate any life changes for tax benefits
A midyear tax checkup may also be a good time to adjust your financial strategy by considering any tax credits or deductions that you may be eligible for after major life events, such as a marriage or divorce, a new child, a change in job or income, retirement, or a home purchase. With several months left in the year, you have time to recalculate your withholding or take advantage of tax benefits. A review also gives you time to gather all related documentation and discuss how to take advantage of tax planning opportunities with a qualified tax professional.
Your midyear tax checkup does not require a detailed analysis of every financial transaction; rather, it simply means reviewing your records, withholding, and major life changes to help make next year’s filing season a little less stressful.
Prepared by Broadridge Advisor Solutions. © 2026 Broadridge Financial Services, Inc.