There’s something about summer that makes people collectively forget how numbers work.
Temperatures go up, discipline goes down, and suddenly “budget” becomes more of a suggestion than a plan. Pool floats multiply, weekend trips appear out of thin air, and no one seems overly concerned that their credit card is quietly training for a marathon.
But here’s the thing: Summer is actually one of the best times to get a little strategic with your tax planning. I know —nothing says “poolside reading” like tax strategy. Stick with me.
First, let’s talk about income. If your year is shaping up differently than expected — maybe business is booming, maybe it’s … not — summer is the perfect checkpoint. Waiting until December to realize you owe more than expected is like realizing you forgot sunscreen after you’re already burnt to a crisp. Painful and entirely avoidable.
This is where proactive moves come in. Adjusting withholdings, making estimated tax payments or even accelerating or deferring income can make a meaningful difference. It’s not glamorous, but neither is writing a surprise check to the IRS when you’d rather be booking a beach trip.
Then there’s the classic summer wildcard: bonuses, commissions or side hustle income. Summer tends to bring out the entrepreneurial spirit. Think Airbnb rentals, freelance gigs or turning a hobby into cash flow. That’s great … until tax season reminds you that the IRS also enjoys your hustle.
Setting aside a portion of that extra income now (yes, now, not “later”) can save you from a financial hangover next spring. A good rule of thumb: If it feels like “extra” money, it’s probably partially the government’s money.
Let’s not forget about capital gains. Summer often comes with a little more time to review investment accounts —ideally from a shaded patio with a cold drink. If you’ve got positions with gains (or losses), this could be a smart time to rebalance.
Harvesting losses to offset gains isn’t exactly thrilling, but it is effective. Think of it as financial sunscreen — quietly protecting you from future damage.
Charitable giving also deserves a quick cameo. While year-end tends to get all the attention, spreading out donations during the year can help with cash flow and planning. Plus, it feels slightly less like a December panic decision and more like actual generosity.
And then there’s retirement contributions. Summer is a great time to check whether you’re on track. If you’re self-employed or have variable income, you’ve got flexibility — but that also means responsibility. Waiting until the last minute to figure it out is like cramming for a final exam you forgot you had — technically possible but not ideal.
Here’s the bottom line: Summer doesn’t have to be a financial free-for-all. You can enjoy the trips, the cookouts and the questionable amount of money spent on things that inflate and deflate … while still making smart tax moves behind the scenes.
A little mid-year planning now can mean fewer surprises later — and fewer regrets when the tan fades but the tax bill doesn’t.
Because nothing ruins a perfectly good summer memory like realizing it came with interest and penalties.
Michelle Kuehner, a Chartered Financial Consultant and Master Certified Estate Planner, is the president of Personal Money Planning LLC, a Wichita Falls retirement planning and investment management firm.
This article originally appeared on Wichita Falls Times Record News: Poolside financial planning. Yes, really | Opinion
Reporting by Michelle Kuehner, Wichita Falls Times Record News / Wichita Falls Times Record News
USA TODAY Network via Reuters Connect
By Michelle Kuehner, Wichita Falls Times Record News | USA TODAY Network
