Four Things I’m Thankful for as a CPA

As the season of gratitude and self-reflection approaches, I find myself pausing to appreciate the tools I use as a CPA to help clients save money, plan ahead, and tackle tax season with confidence. Here are four professional aspects I’m particularly thankful for:

The Generous Standard Deduction

This year, the standard deduction is quite beneficial: $15,750 for single filers, $31,500 for married couples filing jointly, and $23,625 for heads of household. When clients’ itemized deductions fall short of these amounts, recommending the standard deduction becomes a straightforward and advantageous choice.

Retirement Account Contributions

Retirement savings are crucial, and I'm grateful for the flexibility in contributions. For IRAs, clients can contribute up to $7,000 (or $8,000 if they are age 50+). For those with a 401(k), the limits are even higher, up to $23,500 (or $31,000 if they are age 50+). This year, there are enhanced catch-up contributions for ages 60–63, though this will revert at age 64. Advising on the differences between Traditional and Roth contributions allows clients to optimize their tax strategies based on their future financial outlook.

Health Savings Accounts (HSAs)

Health Savings Accounts offer a remarkable triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified expenses. The contribution limits this year are generous—$4,300 for individual coverage and $8,550 for family coverage, with an additional $1,000 catch-up for those 55 and older. HSAs truly stand out as a strategic tool for long-term health and financial planning.

The Child Tax Credit (CTC)

The Child Tax Credit is invaluable for families, providing up to $2,200 per qualifying child under 17, with a potential refund of up to $1,700. Phase-out thresholds are set at $200,000 for single filers and $400,000 for joint filers. These thresholds ensure that the credit reaches those who need it most while offering significant relief to qualifying families.

I encourage everyone to review these opportunities before year-end to maximize benefits. For tailored advice, don’t hesitate to reach out. Navigating these provisions can greatly enhance financial wellbeing, so let’s make the most of them together!