Let’s be real—when you’re running a law practice, time flies. One day you’re kicking off Q1 with good intentions, and the next thing you know it’s July, your inbox is a war zone, and tax season seems far away… until it’s not.
If you’re an attorney or law firm owner, now is the perfect moment to pause, take stock of your finances, and set yourself up for a smoother—and potentially more profitable—year-end. Why wait until December when you’re buried in client work and holiday madness?
This blog post walks you through smart, practical mid-year tax planning strategies tailored specifically for busy attorneys. Whether you’re a solo practitioner or managing a small team, these steps can help you save money, avoid tax headaches, and make better financial decisions for the second half of the year.
1. Review Your Year-to-Date Financials
Before you can make any strategic moves, you need a clear picture of where you stand.
Start by reviewing your income and expenses for Q1 and Q2:
- Are you hitting your revenue goals?
- Are there any expense categories that look off or inflated?
- Have all your transactions been categorized correctly in your accounting software?
A mid-year check-in is like a health exam for your practice. If your books are messy, now is the time to clean them up—before the chaos of Q4 hits.
Pro Tip: If you haven’t reconciled your bank statements in a while, that’s a red flag. Clean, accurate books are essential for effective tax planning.
2. Estimate Your 2025 Tax Liability
Attorneys often fall into the trap of underestimating their tax burden—especially if income fluctuates. Waiting until January to realize you owe thousands of dollars is… well, not ideal.
Here’s how to stay ahead:
- Use your YTD profit to project your annual income
- Calculate estimated taxes based on that projection
- Adjust your Q3 and Q4 estimated payments if needed
If your income has grown significantly (congrats!), now’s the time to increase your estimated tax payments to avoid penalties or a surprise balance due in April.
3. Maximize Deductions While There’s Still Time
The beauty of July is that you’ve still got six months to make deductible purchases or investments before the end of the tax year. Attorneys have a range of deductible expenses, but timing is everything.
Here are some deduction ideas to consider:
- Technology Upgrades: Thinking of upgrading your computer, software, or phone? Do it before December 31.
- Continuing Legal Education (CLE): Sign up for and pay for courses now.
- Office Improvements: Renovations, furniture upgrades, or even security systems could be deductible.
- Professional Services: Book that strategy session with your CPA or hire a business coach—both may qualify as write-offs.
Reminder: Always check with your accountant to confirm deductibility. What counts can vary based on your practice structure (e.g., sole proprietor vs. S-Corp).
4. Fund Your Retirement Accounts Early
If you’re self-employed or running a small firm, retirement contributions are one of the best ways to reduce your taxable income. Many attorneys wait until the last minute to max out retirement plans, but you don’t have to.
Mid-year is the perfect time to:
- Review how much you’ve contributed to your Solo 401(k), SEP IRA, or Traditional IRA
- Increase your monthly contributions if you’re behind
- Consider opening a new retirement plan if you don’t have one yet
Spreading contributions over the rest of the year eases cash flow stress and maximizes your tax benefit.
5. Audit Your Business Entity Structure
Is your current business setup helping or hurting your tax situation? July is a great time to revisit this—especially if your income has changed substantially this year.
For example:
- If you’re operating as a sole proprietor, it might make sense to form an S-Corporation to take advantage of salary vs. distributions.
- If you’re already an S-Corp, are you paying yourself a reasonable salary to avoid IRS scrutiny?
These kinds of decisions can have a big impact on your overall tax liability. But making changes takes time—so don’t wait until December to figure it out.
6. Plan for Charitable Giving and Other Strategic Moves
If charitable giving is part of your personal or firm values, now’s a great time to plan it out thoughtfully. Instead of scrambling to donate by December 31, you can:
- Research nonprofits aligned with your mission
- Schedule recurring donations
- Explore tax-efficient giving strategies (e.g., donor-advised funds)
You might also consider:
- Prepaying for 2025 business expenses
- Timing income recognition strategically
- Harvesting any capital losses (especially if you invest on the side)
Again, the key is: Don’t wait. Planning ahead gives you more flexibility and better options.
7. Don’t Go It Alone—Bring in a Pro
Look—we get it. You’re not a tax expert (and you shouldn’t have to be). The U.S. tax code is a maze, and mistakes can be costly. That’s why the smartest move you can make right now is partnering with a bookkeeping and tax professional who understands the unique needs of attorneys.
A good accountant can:
- Spot deduction opportunities you’re missing
- Help you reduce your taxable income
- Ensure compliance and peace of mind
- Set you up for success in 2025 and beyond
Let’s Make the Second Half of the Year Your Strongest Yet
At Neovision, we specialize in helping attorneys and law firm owners like you stay financially organized, tax-savvy, and confident in your numbers.
If you’re ready to:
- Take control of your books
- Maximize your deductions
- Eliminate tax-time stress
…then let’s talk.
👉 Schedule your free mid-year tax strategy call today.
Remember: You work hard to serve your clients. Don’t let taxes eat away at your success. With a little planning now, you can save money, sleep better, and finish the year stronger than ever.