Four Things I'm Thankful for as a CPA

It's that special time of year for gratitude and self-reflection. As a CPA, I'm especially thankful for the professional tools I use to help clients save money, plan ahead, and feel confident during tax season. Here are four things I'm thankful for:

The Standard Deduction

The standard deduction makes filing taxes easier for many. For single filers, it's $15,750; for married couples filing jointly, it's $31,500; and for heads of household, it's $23,625. When itemized deductions fall short of these amounts, opting for the standard deduction is often the smarter, simpler choice.

Retirement Account Contributions

Contributing to retirement accounts is a powerful tool. You can contribute up to $7,000 to an IRA (or $8,000 if you're 50+), and up to $23,500 to a 401(k) ($31,000 if you're 50+). A special rule enhances catch-up contributions for those aged 60–63 in 2025, reverting at 64. Traditional vs. Roth contributions offer different tax advantages, each beneficial in their own way.

Health Savings Accounts (HSAs)

HSAs provide a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified expenses. For individual coverage, the limit is $4,300, and for family coverage, it's $8,550, plus an additional $1,000 catch-up for those 55+. They truly empower clients to save for medical expenses.

The Child Tax Credit (CTC)

The CTC offers up to $2,200 per qualifying child under 17, with up to $1,700 refundable. Phase-out thresholds are $200,000 for single filers and $400,000 for joint filers, making it a valuable credit for many families.

As the year-end approaches, reviewing these opportunities is wise. If you need professional guidance to maximize these benefits, I'm here to help! Feel free to reach out, and let's ensure your finances are in the best shape possible.