Four Things I'm Thankful for as a CPA
Michel Knott

As the year winds down, it's the perfect time for gratitude and reflection. In the world of accounting, I'm incredibly thankful for the tools and opportunities that help my clients save money, plan ahead, and approach tax season with confidence. Here are four things I’m grateful for as a CPA:

The Standard Deduction

The standard deduction can simplify tax filing for many. For single filers, it's $15,750; for married couples filing jointly, $31,500; and for heads of household, $23,625. If itemized deductions fall short of these amounts, opting for the standard deduction can be a wise and straightforward choice. It’s like a little gift that simplifies things while maximizing potential benefits.

Retirement Account Contributions

Retirement savings options like IRAs and 401(k)s provide great tax advantages. For 2025, individuals can contribute up to $7,000 to an IRA ($8,000 if you're 50 or older), and up to $23,500 to a 401(k) ($31,000 if 50+). Interestingly, for those aged 60-63, enhanced catch-up contributions are in play this year, though they revert at age 64. Each choice between Traditional and Roth accounts offers unique benefits, from tax deferrals to future tax-free withdrawals.

Health Savings Accounts (HSAs)

HSAs offer a triple tax advantage that’s hard to beat—tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified expenses. This year, contribution limits are $4,300 for individual coverage and $8,550 for family coverage, with a $1,000 catch-up for those 55 and older. It’s like having a financial powerhouse dedicated to health-related spending.

The Child Tax Credit (CTC)

The Child Tax Credit provides up to $2,200 per qualifying child under 17, with $1,700 being refundable. The phase-out thresholds stand at $200,000 for single filers and $400,000 for joint filers, offering substantial relief to families while encouraging a brighter financial future for their children.

This season, I encourage everyone to review these generous financial opportunities before the year-end. If maximizing these benefits interests you, consider reaching out for professional guidance. A friendly conversation can make all the difference in your financial well-being.