Summer Financial Checkup: Just because it’s summer, doesn’t mean it’s time to take a break from your money, especially when you have cross-border needs.
Summer (mid-year) is the perfect time not only to conduct a mid-year review but also to strategize for the second half of the year.
At the end of this post, I share two free resources that will help you on this journey.
Summer Financial Checkup: What Tax Moves Make The Most Sense?
How To Adjust My Tax Withholding Over Summer?
Being summer, hopefully, by now, you have a good idea of what to expect next year.
At Elgon Financial Advisors, this is all part of our Tax Planning Process. By now, we’ve reviewed our clients’ 2024 taxes, identified the issues, and either started or have already formulated a plan for next year. Here are some of the items to consider.
Did you end up having to send the government a check for taxes owed? If so, did you end up having to pay a penalty for that?
What happened? Did you have a late year-end bonus, where you did not withhold enough, or had RSUs vest and did not have enough withheld?
Use this time to evaluate where you are with your taxes – use the latest paystub (more on this later) to see how much has been withheld, and with that, you can project where you expect to be by the end of the year. You must have extra taxes withheld if you prefer not to send a check to the IRS.
Tax Filing Extension: A Summer Financial Checkup HomeRun
If you requested a tax filing extension, you don’t need to wait until October to file.
Summer is the perfect time to work with your tax professionals to file your taxes. They are probably a little more relaxed – the rush of the tax filing season is over, and so they can spend more time with you.
It’s also the perfect time to make an intro between your financial planner and your tax pro – if you haven’t done that yet.
It’s probably one of the easier tasks on your summer financial checkup list to complete.
Summer Financial Checkup And Cross-Border Taxes?
If you file taxes in two countries, be sure to check the deadline in the other country.
For example, when I work with clients from India, I am aware that their calendar year runs from April 1st to March 31st.
Therefore, to utilize foreign tax credits, we must first file our Indian taxes before completing our US taxes; hence, an extension on the US side is required.
Another example is Canada – their tax deadline is April 30th, but their tax year aligns with the calendar year of the US. Since we need to complete that first, we will most likely complete our US taxes after April 15th; hence, we will request an extension.
The UK is another interesting one – the year starts on April 6th, meaning they don’t use the calendar year like the US – you get the idea.
Be aware of these dates as you plan to complete all pending tax filings over the summer, as you continue to work through your summer financial checklist.
Summer Financial Checkup – How Do You Reduce Your Tax Liabilities?
Charitable Giving
If you are charitably inclined, this is a great time to figure out how much you want to give, whether you do it now or later.
If you are considering using a Donor-Advised Fund (DAF), summer is a great time to think it through, open the account, and start putting the necessary systems in place to get this done.
A DAF is great if you have highly appreciated stocks that you want to donate. Typically, you donate the stock or cash, but you can take your time deciding who gets the donations in the future.
The best thing is that you get all the tax deductions this year.
We have used this strategy with some clients in the past, and they were thrilled about it. They received a huge tax benefit and have the opportunity to support some of their favorite charities.
You do need to do math to figure out how much it will save you, as you have to itemize.
A great financial advisor can help here as you work on this summer financial checklist.
Tax-loss Harvesting
The worst thing to do for yourself is to start scrambling at the end of the year to try to get some tax-loss harvesting in place.
For it to make sense, you should consider not only this year’s taxes but also future taxes.
So, give yourself some time to plan the move and make some of these calculations.
If carefully thought out and executed well, Tax-loss harvesting can boost your portfolio gains. I wrote a blog post on this – check it out.
Tax-Loss Harvesting: How to Boost Your Portfolio Gains
Tax-Gain Harvesting
This works great if you are going to have a low-income year. If your income is less than 40k single or 80k MFJ, you can take gains with no taxes.
Two examples where we’ve used this.
A college student (very little income) inherits highly appreciated stocks. They are most likely in a very low tax bracket, so you can start selling the shares with zero capital gains, as long as you keep them under that income level.
You plan to leave the country, so you quit work by the end of the year. In the early part of the following year, you can do a lot of tax-gain harvesting, since you’ll have very little income. Summer is a great time to start planning.
Midyear (Summer) Pay Stub Review
Your pay stub tells a beautiful story of its own. It shows how you are tracking with workplace retirement contributions, healthcare contributions, and any excess withholding, making it the perfect tool to determine what you need to adjust.
Being halfway through the year means there is still time to make changes.
Use the chart at the end of this post to discover a wealth of information in your pay stub.
What Goes Into The Summer Travel & Financial Checkup?
Before you hit the road, let’s make sure all your bases are covered, especially if you plan to travel overseas.
Estate Plan Summer Update
You want to have your estate plan done. You want a US-specific will that clearly details who your children’s guardians will be if they are under 18.
This is a question that comes up a lot. The most challenging aspect is selecting a guardian, especially if your family is overseas.
In this post, “Essential Guide To Overseas Guardianship for Immigrants”, I detail what we did with our plan, since we don’t have family in the US.
Other things you want in place include
Powers of the Financial and Health Care Proxy.
All accounts should have beneficiaries.
A letter of instruction – a document that tells your loved ones where everything can be found. This is not a legal document, so you can draft it on your own.
Use the slow summer months to complete your estate planning; your family will thank you for it if something were to happen to you.
Insurances/Risk Assessment
Before that road trip to another state to visit your cousins, confirm your auto insurance is still appropriate.
If you have new drivers, ensure they have been added not only to your auto insurance but also to your umbrella insurance. Many people overlook this second point.
If you’re not satisfied with your current coverage, now is the ideal time to shop for new insurance. It’s also a great time to review all your other insurance policies (Home, Boat, etc.).
Kids Going To College? – Big Summer Financial Checkup
Most of your kids who are going to college will be 18 this year or will turn 18 at some point this year. They are becoming adults.
As part of preparing them for college, you want to ensure that you can still assist them with legal, financial, and other medical decisions.
According to the law of the land, the minute your child turns 18, they are now a legal adult; they can vote, sign contracts, make medical decisions for themselves, even though you are most likely still on the hook for the payments.
This happened with my oldest, who turned 18, and a day later, I went in to retrieve some immunization records, but I had no access to anything.
Therefore, the solution was to visit the doctor’s office and obtain permission. In addition, we got her will signed, powers of attorney (Financial and Health) all set up with us as the agents.
Additionally, it presents a great opportunity to discuss some of these life decisions.
Cash Flow & Expenses Checklist
This is a great time to review your current expenses and savings and determine if any adjustments are needed.
Ensure you have a 12-month emergency fund, plus the cost of return tickets for the whole family, in case you need to return home unexpectedly.
For foreign nationals on work visas, green card holders, and naturalized citizens, it’s vital that you have a distinct legal bucket in your spending plan.
In addition, start a relationship with a good immigration lawyer if you don’t have one already.
Use this slow time to interview a few individuals, so that if you ever find yourself in a bind, you have someone you can call upon.
New Resources – Free Downloads
Two resources that will help you in the above process
With the OBBBA (The One Big Beautiful Act) now in place, some of the contribution and tax numbers have changed.
Latest Chart – 2025 Important Numbers
Use This Chart To Uncover A Wealth Of Information From Your Pay Stub
Are You Concerned That There Could Be Things You’re Missing Out On Your Finances?
Why Professional Guidance Is Key
The US tax code is complex, and it’s even more so when you are not born here and are unsure where you’ll be retiring.
There are also numerous concerns about what’s going on, and you want your finances to be in great shape to match the moment.
I’ve walked the journey before, I understand the fear, the concern, but also the opportunities available. Often, it’s not knowing what you don’t know.
I’m happy to partner with you on your situation anytime, especially now during the slow summer months.
Free Financial Assessment
If you’re not ready to start, that’s okay. However, please stay up to date with our regular updates by email or by joining us here. Sign Up Here.
6 Things to Do
When Starting A Job on H-1B Visa
You are starting a new job on a work visa, there are some critical things, that will set up for financial success in the first 3-6 months. Download the free guide below for the detailed list!
We never spam. By signing up you’ll also receive access to future resources right to your inbox.
Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for the purchase or sale of any security, investment advisory services, or legal advice. I encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Jane Mepham and all rights are reserved. Read the full disclaimer here.
