Mid-year is when good tax planning becomes great tax planning
There’s a common misconception that tax planning happens during tax season.
It doesn’t.
Tax returns tell us what already happened. Tax planning is about what can still happen.
That’s why I believe the middle of the year is one of the most valuable times for advisors to create meaningful tax savings for their clients. There are still months left to make adjustments, evaluate opportunities, and help clients make decisions before the calendar and the IRS closes the door.
One question I encourage advisors to ask every client this time of year is:
“What’s changed since we filed your tax return?”
It’s a simple question, but it often leads to meaningful conversations.
A business owner may be having a much stronger year than expected. A client may have changed jobs, sold a property, exercised stock options, or started thinking seriously about retirement. Others may be considering charitable gifts, Roth conversions, or helping children and grandchildren financially.
None of those conversations require you to know every line of the tax code.
They require you to ask the right questions at the right time.
The advisors who consistently deliver the most value aren’t necessarily the ones with the deepest tax knowledge. They’re the ones who make tax planning an ongoing part of their client relationships instead of a once-a-year event.
That’s also why consistency beats complexity. One thoughtful conversation now can create far more value than scrambling through a stack of tax returns the following March.
As you’re meeting with clients over the next few weeks, don’t focus on finding a tax strategy for everyone. Focus on discovering what’s changed. Sometimes you’ll uncover a significant planning opportunity. Other times you’ll simply confirm that your client is on the right path. Both outcomes build trust.
Tax planning shouldn’t be something you only think about during tax season. With the right resources, systems, and guidance, it can become a year-round part of the way you serve your clients. RTS Membership gives advisors access to tools like monthly newsletters, client-ready worksheets, desktop guides, training, and more all designed to help you bring tax planning into your everyday practice. Learn more about RTS Membership and see how you can start building a stronger tax planning process for your clients.
Happy Tax Planning,
Steven Jarvis, CPA