Last Call for Back-to-Business Tax Strategies 

August might signal the final stretch of summer, but it’s also a strategic window for business owners, gig workers, and freelancers to sharpen their tax and financial planning. As the slower pace of summer gives way to a busy fall, now is the time to get proactive with your deductions, estimated payments, and retirement contributions. 

Here are three mid-year tax moves that can set you up for smoother year-end planning—and meaningful savings. 

 

1. Mid-Year Deduction Check 

If you’ve been heads-down running your business or juggling multiple income streams, it’s easy to overlook deductible expenses that can reduce your taxable income. Fortunately, the summer slowdown offers a chance to catch up. 

For the self-employed or small business owners, now is the time to review and document any eligible deductions. Did you upgrade your home office setup? Replace a business laptop? Drive for work-related purposes? The IRS allows a standard mileage deduction—$0.70 per mile in 2025—for qualified business travel [1]. These routine expenses can add up to big savings come tax time. 

Other commonly overlooked deductions include: 

• Business software or subscriptions (e.g., Canva, QuickBooks, Zoom) 

• Marketing and advertising costs 

• Business meals (50% deductible if properly documented) 

• Education and professional development expenses 

Take advantage of the remaining months to make any planned purchases before Q4 ends, and keep your receipts and records organized. Better documentation now means fewer headaches later. 

 

2. Estimated Taxes Are Due September 15 

If you earn non-W2 income—whether through freelance work, consulting, or running your own company—you’re likely responsible for making quarterly estimated tax payments. The third installment for 2025 is due on September 15, making August the perfect month to review your income and expenses with your Wedbush financial advisor. 

Underpaying estimated taxes can result in IRS penalties, even if you pay in full by the end of the year. To avoid this, you must pay either 100% of last year’s tax liability or 90% of this year’s expected liability, whichever is less [2]. If your income has increased this year, you may need to adjust your payments accordingly. 

The IRS provides Form 1040-ES to help calculate your estimated tax obligations, but working with your Wedbush financial professional ensures a more accurate and strategic plan. 

 

3. Maximize Retirement Contributions Early 

Another smart mid-year move: review your retirement contributions, especially if you use self-employed plans like a SEP IRA, Solo 401(k), or SIMPLE IRA. Not only do these accounts offer meaningful tax-deferred growth, but they also provide significant opportunities to reduce taxable income. 

• An SEP IRA allows contributions of up to 25% of compensation, capped at $70,000 for 2025 [3]. 

• A Solo 401(k) offers both employee deferral and employer contribution options—making it ideal for high earners looking to maximize tax-advantaged savings. 

By contributing now, rather than waiting until year-end or the tax deadline, you can ease cash flow pressure and potentially grow your savings faster. 

Also, consider coordinating contributions with your estimated tax planning. Adjusting both can optimize your overall tax picture. 

 

Proactive Planning Pays Off 

The weeks before Q4 present a golden opportunity to tidy up your books, make smart deductions, and reduce your tax burden. Whether you’re running a growing business or managing a side hustle, small steps taken now can make a big difference later. 

Use this quieter month to sit down with your Wedbush Financial Advisor or tax professional and ensure your strategies are aligned. With proper planning, you’ll head into year-end confident, not scrambling. 

 

Sources: 

[1] IRS. “Standard Mileage Rates for 2025.” https://www.irs.gov/newsroom/irs-increases-the-standard-mileage-rate-for-business-use-in-2025-key-rate-increases-3-cents-to-70-cents-per-mile 

[2] IRS. “Estimated Taxes | Frequently Asked Questions.” https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes
[3] IRS. https://www.irs.gov/retirement-plans/cola-increases-for-dollar-limitations-on-benefits-and-contributions 

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