Four Things I'm Thankful for as a CPA

As the year winds down, it's a perfect time for gratitude and self-reflection. For CPAs like me, this includes appreciation for the professional tools that help us save clients money, plan effectively, and ease the stress of tax season.

1. The Standard Deduction

I'm thankful for the simplicity the standard deduction offers. For 2025, single filers can deduct $15,750, married couples filing jointly can deduct $31,500, and heads of household have a $23,625 deduction. When itemized deductions fall short of these amounts, choosing the standard deduction is not only easier but often more beneficial.

2. Retirement Account Contributions

Retirement planning is key, and I appreciate the opportunities provided by retirement account contributions. This year, individuals can contribute up to $7,000 to an IRA (or $8,000 if 50+). For 401(k) plans, contributions can reach $23,500, with a boost to $31,000 if you're over 50. Recent rules enhance contributions further for those aged 60-63. Remember, the limit changes again at 64. Whether it’s Traditional or Roth, understanding the benefits of each contribution type helps clients plan for the future.

3. Health Savings Accounts (HSAs)

HSAs offer significant financial advantages, another tool I'm grateful to discuss with clients. The contribution limits for individual coverage are $4,300 and $8,550 for family coverage, with an additional $1,000 catch-up for those age 55 and over. The triple tax advantage—deductible contributions, tax-free growth, and tax-free withdrawals for qualified expenses—makes HSAs a smart choice.

4. The Child Tax Credit (CTC)

Lastly, I’m thankful for the support provided by the Child Tax Credit. In 2025, families can claim up to $2,200 per qualifying child under 17, with up to $1,700 refundable. The phase-out begins at $200,000 for single filers and $400,000 for joint filers, making this credit a valuable benefit for many families.

As we approach year-end, it's essential to review these opportunities to maximize benefits. If you're seeking professional guidance on these matters, feel free to reach out. Together, we can ensure you're making the most of these financial tools in a friendly and approachable way.