Four Things I'm Thankful for as a CPA

As the year winds down, it's a wonderful time for gratitude and self-reflection. For CPAs, this means appreciating the professional tools that help clients save money, plan ahead, and feel more secure during tax season.

Here are four things I'm thankful for:

The Standard Deduction

With the standard deduction being $15,750 for single filers, $31,500 for married couples filing jointly, and $23,625 for heads of household, it simplifies the choice for many. If itemized deductions fall short of these amounts, the standard deduction is often the easier and more beneficial option.

Retirement Account Contributions

Contributions to retirement accounts are a significant advantage. For IRAs, the limit is up to $7,000, or $8,000 if you're age 50 or older. For 401(k) accounts, it's up to $23,500, or $31,000 for those aged 50+. Special catch-up contribution rules apply for those aged 60–63 in 2025, with limits reverting at age 64. Understanding the differences between Traditional and Roth contributions can also greatly affect future financial planning.

Health Savings Accounts (HSAs)

HSAs are another fantastic tool with individual coverage allowing contributions of $4,300, and family coverage up to $8,550, with an additional $1,000 catch-up for those age 55 and older. They offer a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified expenses.

The Child Tax Credit (CTC)

The Child Tax Credit offers up to $2,200 per qualifying child under 17, with up to $1,700 of that possibly being refundable. Be aware of the phase-out thresholds which are $200,000 for single filers and $400,000 for joint filers.

As we approach year-end, it's a great opportunity to review these options and ensure they're maximized to your benefit. Feel free to reach out for professional guidance—we're here to help with your financial success in a friendly and approachable manner.