Year‑Round Tax Planning: A Proactive Guide for Tax Professionals
- MyTAXPrepOffice Editorial Group
- Jun 13
- 3 min read
As tax professionals, your expertise doesn’t stop on April 15th. One of the most valuable services you offer is helping clients plan strategically throughout the year—not just during tax season. The IRS offers a host of year‑round tax planning suggestions that can significantly improve client outcomes and strengthen your advisory relationship.
Here’s a breakdown of top year‑round planning strategies you can integrate into your services:
1. Optimize Withholding & Estimated Payments
Why this matters: Under‑withholding or irregular income can lead to nasty penalties and surprise bills.
How to help clients:
Encourage use of the IRS Tax Withholding Estimator mid‑year to adjust payroll withholding.
For self‑employed or gig workers, ensure estimated tax payments are made quarterly. Keep track of due dates: April 15, June 15, September 15, and January 15 of the following year.
2. Track Financial Changes & Life Events
Why this matters: Significant events like marriage, a new child, or job changes can alter filing status and eligibility for credits.
How to help clients:
Set reminders to review clients’ life changes mid‑year.
Adjust strategies for credits (e.g., Earned Income Tax Credit, Child Tax Credit) and deductions accordingly.
3. Plan for Charitable Giving
Why this matters: Charitable donations may lower taxable income—but only if planned.
How to help clients:
Discuss whether they’ll itemize deductions and record giving strategies early.
Advise on the benefits of qualified charitable distributions from IRAs for those over 70½ years old.
4. Save for Education & Retirement
Why this matters: Funding education and retirement can deliver real tax breaks.
How to help clients:
Recommend contributions to 529 plans, potentially qualifying for state tax deductions.
Encourage annual IRA and 401(k) contributions—don’t wait until the last minute.
Discuss tax credits for eligible educational expenses.
5. Take Advantage of Health‑Related Accounts
Why this matters: Health savings can simultaneously improve wellness and reduce taxes.
How to help clients:
Highlight the benefits of HSAs and FSAs before the year’s end.
Update healthcare expenses associated with itemized deductions or deducted medical expenses.
6. Keep an Eye on Business Owners & Real Estate Investors
Why this matters: Self‑employment and property investments have unique planning opportunities.
How to help clients:
Monitor quarterly self‑employment tax deposits to avoid penalties.
Discuss bonus depreciation, Section 179, and Qualified Business Income (QBI) deductions.
Track rental income/expenses and suggest entitling properties appropriately.
7. Review Your Client’s Current Tax Strategies
Why this matters: Mid‑year stops allow for adjustments before closing the year.
How to help clients:
Do a mid‑year tax checkup to analyze projected income and liabilities.
Recommend adjustments—like Roth conversion, capital gain harvesting, or tax-loss harvesting.
💼 Why This Matters for Tax Professionals
Offering proactive, year‑round tax planning:
Positions you as a trusted advisor—not just a seasonal preparer.
Helps clients minimize surprises and maximize credits/deductions.
Encourages steady workflow and engagement throughout the year.
Opens doors for additional services, such as financial planning or investment advisory coordination.
✨ Pro Tip: Automate the Outreach
Set up periodic check-in reminders for clients:
May: review account changes and withholding
August: mid-year income planning
November: finalize year-end giving and retirement strategies
Use your tax software (like MyTAXPrepOffice) to track client touch points and schedule automation for tasks and reminders.
📈 Final Thoughts
Year-round tax planning transforms the client relationship from reactive to proactive. It’s not just about filing—it’s about helping clients make smart, informed decisions that lead to better financial outcomes.
By embedding year-round tax planning into your service offering, you’ll deepen client trust, enhance your firm’s market position, and build a stable foundation for ongoing engagement.
Disclaimer: This article is for informational and educational purposes only and does not constitute legal tax advice. Advanced Tax Solutions is not liable or responsible for any damages resulting from or related to your use of this information. It is your responsibility to refer to official IRS documentation for information regarding any tax laws or tax information shown here.
