Halfway through the tax year is always a good time to assess where you stand with Uncle Sam. You can see how the year’s tax bill is taking shape while you still have plenty of time to make tax-saving moves. It’s particularly critical to do a midyear assessment this year because the new tax law may have changed your tax picture.
“This is a year where people can be caught off-guard if not looking ahead at what their 2018 tax liability is,” says Keith Fenstad, director of financial planning at Tanglewood Total Wealth Management. Many taxpayers will find they owe less, while some will owe more. You may switch from itemizing to taking the standard deduction, or you may be off the hook for the alternative minimum tax.
Fire up a computer spreadsheet or pull out pen and paper and figure out where you stand. Then consider these moves to rein in your tax tab.