Four Things I’m Thankful for as a CPA

As the season of gratitude and self-reflection arrives, I find myself appreciating the professional tools that allow me to help clients save money, plan ahead, and gain confidence during tax season. Here are four things I'm thankful for in my role as a CPA:

The Standard Deduction

With a standard deduction of $15,750 for single filers, $31,500 for married couples filing jointly, and $23,625 for heads of household, clients have a straightforward choice if their itemized deductions fall short. This often makes the deduction process easier and more beneficial for many.

Retirement Account Contributions

IRA contributions can go up to $7,000 ($8,000 if you're 50 or older), and for 401(k)s, up to $23,500 ($31,000 for those aged 50+). A noteworthy change for 2025 includes enhanced catch-up contribution rules for ages 60–63. Remember, the limit resets at age 64. Clients can choose between Traditional and Roth contributions to suit their financial strategies.

Health Savings Accounts (HSAs)

HSAs offer individual coverage contributions up to $4,300 and family coverage up to $8,550, with an additional $1,000 catch-up for those aged 55 or older. HSAs come with a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualifying expenses, making them a crucial tool for healthcare savings.

The Child Tax Credit (CTC)

The CTC provides up to $2,200 per qualifying child under 17, with up to $1,700 refundable. Phase-out thresholds are at $200,000 for single filers and $400,000 for joint filers. This credit helps families manage the costs of raising children.

As the year wraps up, these opportunities stand out as vital considerations for maximizing benefits. If you're looking to make the most of these or need guidance, feel free to reach out. We're here to help you make informed financial decisions with a friendly and approachable touch.