Four Things I’m Thankful for as a CPA

It's that time of year when gratitude and self-reflection take center stage. As CPAs, we have so much to be thankful for, especially the professional tools that help us assist clients in saving money, planning ahead, and feeling more confident during tax season. Here are four things I'm particularly grateful for:

The Standard Deduction

This deduction simplifies the tax season for countless individuals. For single filers, the deduction stands at $15,750, while married couples filing jointly enjoy $31,500, and heads of household can claim $23,625. If itemized deductions are less than these amounts, the standard deduction becomes the easier and better choice, making the process smoother for everyone involved.

Retirement Account Contributions

Retirement planning is key, and contributions to retirement accounts play a significant role. For IRAs, individuals can contribute up to $7,000, with an enhanced limit of $8,000 if they're age 50 or over. Similarly, 401(k) plans allow contributions up to $23,500, increasing to $31,000 for those aged 50 and above. Exciting catch-up contribution rules for ages 60 to 63 in 2025 are also worth noting, though limits revert at age 64. Understanding Traditional versus Roth contributions helps tailor strategies to individual needs.

Health Savings Accounts (HSAs)

HSAs offer a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified expenses. The contribution limits are $4,300 for individual coverage and $8,550 for family coverage, with an additional $1,000 catch-up for those aged 55 and over. These accounts are invaluable for managing health expenses efficiently.

The Child Tax Credit (CTC)

The CTC provides up to $2,200 per qualifying child under 17, with up to $1,700 potentially refundable. Phase-out thresholds start at $200,000 for single filers and $400,000 for joint filers, allowing families to benefit significantly. This credit is a great relief for many, offering substantial support where it's needed most.

As we approach the end of the year, it's a perfect time to review these opportunities and maximize their benefits. Reach out for professional guidance to ensure you're making the most of what's available. Remember, a little planning can lead to significant savings and peace of mind.