Get Ready to File Your Federal Income Tax Return with These Preparation Tips

Amanda Beder • December 16, 2021

Rely on IRS.GOV for verified information

Join the millions of people who use IRS.gov to get answers to tax questions, file their tax return, check their refund status or pay their taxes. There’s no wait time or appointment needed—start with IRS.gov to find helpful online tools and resources available 24 hours a day.


Protect your data

The IRS, the states and the tax industry are committed to protecting you from identity theft. The official IRS website is IRS.gov and all IRS.gov web page addresses start with https://www.irs.gov/. Don’t be misled by websites or unsolicited emails claiming to be the IRS but their URLs end in .com, .net or .org, instead of .gov. Take these steps to protect yourself from identity thieves and IRS impersonators.

 

Stay Connected with the IRS

The official IRS website is IRS.gov. The IRS has several ways you can stay updated on important tax information that may help with tax planning. Follow the IRS’ official social media accounts and email subscription lists to stay up to date with the latest tax topics and alerts. Download the IRS2Go mobile app, watch IRS YouTube videos, subscribe to IRS e-Newsletters or follow the IRS on Twitter, Facebook, LinkedIn and Instagram for the latest updates on tax changes, scam alerts, initiatives, products and services.


Get tax information in your preferred language

Tax information can be hard to understand in any language. It can be even harder if that information isn’t offered in the language you know best. We’re translating our tax resources into more languages and currently have basic tax information in twenty languages. You can also GET READY TO FILE Take Steps Now to Get a Jump on Next Year’s Taxes file Schedule LEP, Request for Change in Language Preference, to receive written communications from the IRS in an alternative language. Subscribe to IRS News in Spanish (Noticias del IRS en Español) to receive tax tips and updates in Spanish.


Securely access your individual tax account information online

IRS Online Account lets you see key data from your most recent tax return. You can see your tax balance, view payment plan details and make payments. View your stimulus payments, access advance payment amounts of the Child Tax Credit and selected correspondence from the IRS. Create or access your account at IRS.gov/ account.


Update your records

Notify the IRS if your address changed to ensure you receive IRS correspondence at your new address. File Form 8822, Change of Address (For Individual, Gift, Estate, or Generation-Skipping Transfer Tax Returns) to update your address with the IRS. Otherwise, IRS will automatically update your records with the address on your tax return when you file your taxes. If you’ve had a legal name change, notify the Social Security Administration to avoid a delay in processing your tax return.


Review your eligibility for credits and deductions

Life events—purchasing a home, going to college or losing a job—may make you eligible for certain tax benefits. Finding out your eligibility now can help make filing easier next year. Other circumstances, such as getting married or divorced, welcoming a child or experiencing the death of a spouse or a dependent you claim, could also affect your tax benefit eligibility and filing status. To learn more, go to managing your taxes after a life event. Tax credits and deductions can mean more money in your pocket; and thinking about your eligibility now can help make filing easier next year. Tax law changes for the 2021 tax year made more people eligible for tax credits, including the Earned Income Credit and the Child Tax Credit. Use the Interactive Tax Assistant on IRS.gov to find out if you qualify for credits such as the Earned Income Tax Credit, Child and Dependent Care Credit and the Credit for Other Dependents. Families with students may qualify for education credits. You may also qualify for a Recovery Rebate Credit if you did not get the full third Economic Impact Payment. Remember to keep records that show your eligibility for credits you claim. This includes agency letters about advance credit payments you received for the Child Tax Credit, Economic Impact Payments and the Premium Tax Credit.


Check your ITIN

If you use an ITIN (Individual Tax Identification Number) to file, make sure it hasn’t expired. Go to IRS.gov/ITIN for more information.


Prepare to file electronically

E-file is the most accurate way to prepare and file your tax return. Errors delay refunds and the easiest way to avoid them is to file electronically. Tax preparation software guides you through the process and does all the math. Seventy percent of all taxpayers can use free brand name tax software to prepare and file their federal income tax return electronically using IRS Free File. All taxpayers, regardless of income level, can also use IRS Free File Fillable Forms. Senior citizens, members of the military, and many other taxpayers—depending on their income—may also qualify for free tax return preparation and electronic filing by IRS-trained volunteers through the Volunteer Income Tax Assistance Program (VITA) or Tax Counseling for the Elderly (TCE) programs.


Get ready to direct deposit your refund

Combining direct deposit with electronic filing is the safest and fastest way for you to get your refund. With direct deposit, your tax refund goes directly into your bank account. There’s no reason to worry about a lost, stolen or undeliverable refund check. If you don’t have a bank account, go to the FDIC website or the National Credit Union Administration’s Credit Union Locator Tool for information on where to find a bank or credit union that can open an account online and how to choose the right account for you.

 

Manage refund expectations

Different factors can affect your refund. Be careful not to count on getting a refund by a certain date, especially when making major purchases or paying other financial obligations. See IRS.gov/refunds for more information. While the IRS issues most e-file refunds in less than 21 days, it’s possible your tax return may require additional review. Some returns take longer to process than others for many reasons, including when a return is incomplete, affected by identity theft or fraud, or includes math errors. And, if you claim the Earned Income Tax Credit or Additional Child Tax Credit, by law, the IRS cannot issue your refund before mid- February. This timeframe applies to the entire refund, not just the portion associated with these credits.


Unemployment compensation

In 2021, many people received unemployment compensation. Unemployment compensation is taxable and must be reported on your income tax return. Unemployment benefit recipients should receive Form 1099-G, Government Payments, from their state unemployment insurance agency in January 2022 either by mail or electronically. Check your state’s unemployment compensation website for more information. Form 1099-G reports the amount of unemployment compensation received in Box 1 and any federal income tax withheld in Box 4. Be sure to include these amounts on your 2021 federal tax return. Find more information on unemployment benefits in Publication 525.


Find out if you need to adjust your withholding

 Did you receive a smaller refund than expected or have an unanticipated tax bill? Use the IRS Tax Withholding Estimator to help decide if you need to adjust your tax withholding or make estimated or additional tax payments. Submit a new Form W-4, Employee’s Withholding Allowance Certificate, to your employer if you need to make an adjustment. You can also make estimated or additional tax payments if the withholding from your salary, pension or other income doesn’t cover the income tax that you’ll owe for the year.


If you have any questions, please give us a call at the office at 216-859-7001. 

Investing in Knowledge: How Higher Education and Smart Tax Planning Go Hand in Hand

By Amanda Beder • June 4, 2025
At Acumen MB LLC, we believe that education is one of the most valuable investments a person can make. That’s why we’re proud to recognize National Higher Education Day —a day dedicated to promoting the importance of higher learning and expanding access to educational opportunities. But beyond the personal and professional growth that comes from a college education, there’s another angle we think is worth highlighting: the financial and tax benefits tied to higher education . Whether you're a student, a parent, or a graduate repaying loans, the tax code offers several incentives that can ease the cost of investing in your future. 1. Education Tax Credits Two of the most common tax breaks for students and families are the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) . AOTC allows up to $2,500 per year for qualified education expenses during the first four years of higher education. LLC offers up to $2,000 per year for post-secondary education, with no limit on the number of years you can claim it. Each credit has specific eligibility requirements, so it’s important to consult with your tax professional to determine which one is right for you. 2. Student Loan Interest Deduction If you’ve started repaying your student loans, you may be able to deduct up to $2,500 in interest paid on qualifying student loans— even if you don’t itemize deductions . This deduction can be a welcome relief, especially for recent graduates managing new financial responsibilities. 3. 529 College Savings Plans For families saving for a child’s education, 529 plans offer a tax-advantaged way to build an education fund. Earnings grow tax-free, and withdrawals are also tax-free when used for qualified education expenses. In many states, contributions to a 529 plan are deductible on your state income tax return. 4. Tax Planning for Scholarships and Grants While most scholarships and grants are tax-free when used for tuition and required expenses, portions used for room and board or other non-qualified expenses may be taxable. Understanding how these funds are reported can help avoid surprises at tax time. We’re Here to Help You Make the Most of Every Educational Opportunity At Acumen MB LLC, we’re not just your accounting team—we’re your financial partners. Whether you're applying for college, repaying loans, or planning for your child’s future, our team is here to help you navigate the tax implications and maximize every available benefit. Have questions about how higher education impacts your taxes? Contact us today to schedule a consultation. Because smart education choices deserve smart tax strategies.

National Fibromyalgia Awareness Day: Understanding the Tax Benefits of Medical Deductions

By Amanda Beder • May 12, 2025
May 12 is National Fibromyalgia Awareness Day—a time to raise awareness, show support, and recognize the daily challenges faced by millions living with fibromyalgia. At Acumen MB LLC, we understand that chronic illnesses like fibromyalgia don't just take a toll on the body and mind—they can also place a heavy burden on your finances. That's why it's important to understand how the tax code may offer some relief through medical expense deductions . What Is Fibromyalgia? Fibromyalgia is a chronic condition that causes widespread pain, fatigue, cognitive difficulties, and sleep disturbances. Because it’s often an “invisible illness,” those who live with it may struggle not only with physical symptoms but also with the emotional and financial weight of managing long-term care. Tax Relief for Medical Expenses If you or someone in your household is being treated for fibromyalgia, certain medical costs may be deductible on your federal tax return , provided they exceed 7.5% of your adjusted gross income (AGI). This deduction applies whether you have been formally diagnosed or are undergoing evaluation and treatment for symptoms consistent with fibromyalgia. Common Deductible Expenses for Fibromyalgia Patients Eligible expenses may include: Doctor and specialist visits (including rheumatologists, neurologists, and pain management clinics) Prescription medications Physical therapy and occupational therapy Mental health services such as therapy or counseling Travel expenses related to medical treatment (e.g., mileage, bus fare, parking fees) Alternative treatments recommended by a medical provider (such as acupuncture or chiropractic care) Medical equipment and supplies (e.g., TENS units, braces, ergonomic furniture) Don’t Forget About FSAs and HSAs If you’re enrolled in a Flexible Spending Account (FSA) or Health Savings Account (HSA) , you may be able to pay for many of these expenses with pre-tax dollars—providing another layer of financial relief. How We Can Help Navigating chronic illness is difficult enough without the added stress of figuring out what you can and cannot claim on your taxes. At Acumen MB LLC, we’re here to guide you through the process. If you or someone you care about is managing fibromyalgia and you'd like to better understand the tax implications, reach out to our team. We can help you track eligible expenses, maximize deductions, and keep your financial health strong. Let’s work together to ease some of the burden—because no one should have to face chronic illness alone, especially at tax time.

Thank You, Teachers – You Deserve All the Credit (And Some Tax Deductions Too!)

By Amanda Beder • May 5, 2025
At Acumen MB LLC, we know firsthand how much of a difference one person can make—and no one proves that more clearly than our teachers. From shaping young minds to creating safe and supportive learning environments, teachers wear countless hats: educator, mentor, counselor, cheerleader, and sometimes even superhero. You spend your own time (and often your own money) to make sure your students succeed. And today, on National Teacher Appreciation Day , we want to say thank you. Thank you for showing up, even on the tough days. Thank you for turning classrooms into communities. Thank you for investing in the future—child by child, lesson by lesson. A Little Tax Tip as Our Thanks While we can never repay everything you do, we can make sure you know about a small way the tax system tries to show appreciation: the Educator Expense Deduction . If you're a teacher, instructor, counselor, principal, or aide for students in kindergarten through grade 12—and you work at least 900 hours a school year—you may qualify to deduct up to $300 ($600 if married filing jointly and both spouses are eligible educators) of out-of-pocket classroom expenses. This includes: Books, supplies, and classroom materials COVID-19 protective items (like masks and sanitizers) Educational software and subscriptions Professional development courses related to your field It's an above-the-line deduction, which means you don’t need to itemize to take it. We're Here to Help At Acumen MB LLC, we love helping educators understand their tax benefits and financial options. Whether you're navigating deductions or planning for your future, we're just a call or click away. To all the incredible teachers out there: we see you, we appreciate you, and we’re here to support you—during tax season and all year long. With gratitude, The Team at Acumen MB LLC

Celebrating National Self-Employed Day: Tips for Mastering Your Taxes and Accounting

By Amanda Beder • May 4, 2025
At Acumen MB LLC, we proudly celebrate the drive, creativity, and resilience of self-employed individuals—especially today, on National Self-Employed Day ! Whether you're a freelancer, gig worker, independent contractor, or small business owner, your role in our economy is invaluable. But with the freedom of self-employment also comes the responsibility of managing your own taxes and finances. That’s where we come in. Understanding Self-Employment Taxes Unlike traditional employees, self-employed individuals are responsible for both the employer and employee portions of Social Security and Medicare taxes—collectively known as self-employment tax. This often comes as a surprise to new entrepreneurs, and it can significantly impact your annual tax liability. Being prepared—and proactive—can make all the difference. Tax Tips for the Self-Employed 1. Know Your Quarterly Estimated Tax Deadlines If you expect to owe at least $1,000 in taxes for the year, you're likely required to make estimated payments quarterly. Missing these deadlines can result in penalties, so mark your calendar and plan ahead. 2. Track All Income and Expenses Diligently Whether you use accounting software or work with a professional, having organized records makes tax time less stressful and helps ensure you're claiming all the deductions you’re entitled to. 3. Take Advantage of Deductions From your home office and internet bill to business mileage and equipment, there are numerous tax deductions available to self-employed individuals. Every dollar you can deduct reduces your taxable income. 4. Consider an SEP IRA or Solo 401(k) Self-employment doesn’t mean you have to miss out on retirement savings. These plans not only help secure your future, but they also offer current-year tax advantages. 5. Don't Overlook the QBI Deduction The Qualified Business Income (QBI) deduction may allow you to deduct up to 20% of your business income. This can be complex depending on your industry and income level, so it’s wise to consult with a tax professional. Why Accounting Support Matters Running your own business is a full-time job (and then some!). Managing your finances and taxes shouldn’t be something you do alone. At Acumen MB LLC , we specialize in helping self-employed individuals build smart financial systems, stay compliant with tax laws, and make informed decisions year-round—not just during tax season. We understand the unique challenges and opportunities that come with being your own boss. Our team is here to help you simplify your finances so you can focus on what you do best—running and growing your business. Are you self-employed and ready to take control of your finances? Reach out to Acumen MB LLC today and let’s make sure your business is on solid financial ground—this National Self-Employed Day and beyond.

Spreading Kindness: How Small Acts Make a Big Difference

By Amanda Beder • February 12, 2025
Celebrating Random Acts of Kindness Week with Acumen MB LLC

Maximize Financial Wellness and Get Organized with QuickBooks

By Amanda Beder • January 14, 2025
January marks both Financial Wellness Month and Get Organized Month—a perfect combination for setting your business up for success in the new year. At Acumen MB LLC, we understand that juggling finances, taxes, and everyday business operations can be overwhelming. That’s where QuickBooks, one of the most powerful accounting tools available, comes in. Why Financial Wellness Matters Financial wellness isn’t just about paying your bills on time; it’s about creating a sustainable system for managing cash flow, reducing debt, and planning for future growth. For businesses, financial wellness directly impacts your ability to make strategic decisions, secure loans, and stay compliant with tax regulations. Get Organized with QuickBooks QuickBooks is a game-changer for businesses looking to streamline their accounting processes. Here’s how it can help you stay organized and financially healthy: 1. Centralized Financial Data QuickBooks allows you to keep all your financial information in one place. From tracking income and expenses to managing invoices and payments, everything is easily accessible. No more sifting through piles of paper or juggling multiple spreadsheets! 2. Real-Time Insights The platform offers real-time insights into your financial health. With customizable dashboards and reports, you can monitor key metrics like cash flow, profit margins, and overdue invoices. These insights empower you to make informed decisions and identify potential financial risks before they become major issues. 3. Automation for Efficiency Automation features like recurring invoices, automatic payment reminders, and bank reconciliation save you time and reduce errors. This efficiency allows you to focus on growing your business rather than getting bogged down in administrative tasks. QuickBooks and Tax Compliance One of the biggest challenges for businesses is staying compliant with ever-changing tax regulations. QuickBooks can: Automatically categorize expenses to ensure proper deductions. Generate reports that meet IRS requirements. Help track payroll taxes and sales tax liabilities. With QuickBooks, you can reduce the risk of costly mistakes and audits. Partner with Acumen MB LLC While QuickBooks is a robust tool, it’s most effective when tailored to your specific needs. That’s where we come in. At Acumen MB LLC, our team of experts can help you: Set up QuickBooks for your business. Provide training to ensure you’re maximizing its features. Regularly review your financial data to keep you on track. Our goal is to help you achieve financial wellness and organization, setting the foundation for long-term success.  Let’s Start the Year Right Ready to take control of your finances and get organized? Contact Acumen MB LLC today to learn how QuickBooks can transform your business. Together, we can make 2025 your most successful year yet!

National College Financial Prep Week: Accounting and Tax Tips for Families

By Amanda Beder • January 8, 2025
Planning for college is an exciting yet overwhelming journey for students and their families. As tuition costs continue to rise, financial preparation is critical to making higher education more affordable and less stressful. At Acumen MB LLC, we understand the importance of financial planning and its intersection with accounting and taxes. In honor of National College Financial Prep Week, we’re sharing key insights to help you navigate this pivotal stage with confidence. 1. Leverage Tax-Advantaged Savings Accounts One of the best ways to prepare financially for college is by utilizing tax-advantaged accounts like 529 plans. Contributions to these accounts grow tax-free, and withdrawals used for qualified education expenses are also tax-free. Some states even offer tax deductions or credits for contributions. Work with your accountant to determine the best savings strategy and ensure you’re maximizing these benefits. 2. Understand Education Tax Credits The U.S. tax code provides valuable credits for families paying for college: American Opportunity Tax Credit (AOTC): Offers up to $2,500 per eligible student for the first four years of higher education. Lifetime Learning Credit (LLC): Provides up to $2,000 per tax return for post-secondary education expenses. Eligibility depends on factors such as income and enrollment status. Our team can help you determine which credits you qualify for and how to claim them. 3. Track Education Expenses for Tax Purposes Keeping detailed records of tuition payments, textbooks, and other qualifying expenses is crucial. Accurate tracking ensures you can claim all applicable tax benefits. Consider creating a dedicated folder or digital system to organize receipts and statements. 4. Explore FAFSA and Other Financial Aid Options The Free Application for Federal Student Aid (FAFSA) is essential for accessing federal grants, loans, and work-study opportunities. Many colleges also use FAFSA data to determine institutional aid. Filing early can increase your chances of receiving aid. Remember, certain tax information, such as income and assets, will be required for the application. 5. Deduct Student Loan Interest If you or your child take out student loans, you may be eligible to deduct up to $2,500 in student loan interest annually. This deduction applies even if you don’t itemize deductions. However, there are income limits, so consult with your accountant to understand how this impacts your tax situation. 6. Involve Your Student in Financial Planning Encourage your student to take an active role in financial planning. Discuss topics such as budgeting, managing part-time job income, and understanding the impact of student loans. These lessons will empower them to make informed decisions during college and beyond. 7. Work with a Trusted Accounting Partner Navigating the complexities of college financial prep can be daunting, but you don’t have to do it alone. At Acumen MB LLC, we specialize in providing personalized accounting and tax solutions to help families achieve their financial goals. From optimizing savings strategies to maximizing tax benefits, our team is here to guide you every step of the way. Ready to Start Planning? National College Financial Prep Week is the perfect time to take proactive steps toward securing your family’s educational future. Contact Acumen MB LLC today to schedule a consultation and ensure your financial plan is as robust as your student’s aspirations.

Year-End Tax Planning for Businesses and Corporations

By Amanda Beder • December 20, 2024
As the calendar year winds down, businesses and corporations have an invaluable opportunity to optimize their financial position through strategic year-end tax planning. At Acumen MB LLC, we understand the importance of taking proactive steps to minimize tax liabilities, maximize deductions, and set the stage for a successful year ahead. Here are key strategies and considerations to help your business close the year on a strong financial note. 1. Review Financial Statements Your financial statements provide the foundation for effective tax planning. By analyzing your profit-and-loss statement, balance sheet, and cash flow, you can identify areas for improvement and ensure all transactions are recorded accurately. · Tip : Ensure expenses are categorized correctly and revenue recognition complies with IRS standards. Accurate records reduce the risk of audits and penalties. 2. Maximize Deductions and Credits Take advantage of every tax-saving opportunity available to your business. Common deductions include: · Section 179 Expensing : Deduct the full cost of qualifying equipment or software purchased this year. · Depreciation Deductions : Review assets eligible for bonus depreciation. · Employee-Related Tax Credits : Look into the various options available such as the Work Opportunity Tax Credit (WOTC). · R&D Tax Credit : If your business invests in research and development, this credit can significantly reduce your tax burden. 3. Consider Timing Income and Expenses Deferring income or accelerating expenses can lower your taxable income for the current year: · Defer Income : Delay invoicing until January if your cash flow permits. · Accelerate Expenses : Prepay certain expenses like rent or utilities to claim the deduction this year. · Year-End Bonuses : Pay employee bonuses before December 31 to include them as deductions. 4. Optimize Retirement Contributions Contributing to employee retirement plans can lower taxable income while providing long-term benefits for your workforce. · Tip : Maximize contributions to plans like a 401(k) or SEP IRA. If you don’t already have a plan in place, consider establishing one before the year ends. 5. Perform a Tax Loss Harvest Offset gains by selling underperforming assets before year-end. This strategy, known as tax loss harvesting, can reduce taxable income. · Tip : Coordinate with your financial advisor to ensure this aligns with your long-term investment goals. 6. Evaluate Your Business Structure Your tax obligations can vary significantly based on your entity type (e.g., LLC, S Corporation, C Corporation). Year-end is an excellent time to assess whether your current structure is still the best fit for your business. · Tip : Consult with a tax advisor to determine if restructuring could provide tax savings for the upcoming year. 7. Review Your Estimated Tax Payments Underpaying estimated taxes can result in penalties. Verify that your quarterly payments align with your projected tax liability for 2024. · Tip : If you’re unsure, a tax professional can help you calculate and adjust your payments. 8. Stay Compliant with State and Local Taxes Don’t overlook state and local tax obligations, such as sales tax, use tax, or franchise tax. Ensure you’ve met all filing requirements to avoid costly penalties. 9. Schedule a Consultation with Acumen MB LLC Year-end tax planning is not one-size-fits-all. Every business has unique needs, and having a trusted advisor by your side can make all the difference. At Acumen MB LLC, our team of experienced accountants is here to help you navigate the complexities of year-end planning. From identifying tax-saving opportunities to ensuring compliance with new regulations, we’re committed to helping your business thrive. Contact us today to schedule your year-end consultation and start the new year with confidence.

Maximize Your Savings: Year-End Tax Planning Tips for Individuals

By Amanda Beder • December 16, 2024
As we approach the close of another year, it’s time to take a strategic look at your finances. Year-end tax planning can help individuals maximize deductions, minimize tax liabilities, and set themselves up for a successful financial year ahead. At Acumen MB LLC, we’re here to guide you through some essential steps to streamline your tax planning before the clock strikes midnight on December 31 st . 1. Maximize Retirement Contributions Contributing to retirement accounts is a win-win: you’re securing your financial future while potentially lowering your taxable income. · Traditional IRA and 401(k) : Contributions to these accounts may be deductible, reducing your taxable income for 2024. · Catch-Up Contributions : If you’re 50 or older, take advantage of higher contribution limits for added savings. 2. Review Charitable Giving The season of giving is also an excellent time to reduce your tax bill. · Donations : Cash donations to qualified charities are deductible if you itemize your deductions. · Non-Cash Donations : Donating appreciated assets like stocks can provide additional tax benefits. 3. Harvest Capital Gains and Losses Take a look at your investment portfolio to determine if selling some assets could benefit your tax situation. · Offset Gains with Losses : Selling losing investments can offset capital gains and up to $3,000 of other income. · Long-Term Gains : If possible, take advantage of lower tax rates on long-term capital gains. 4. Plan for Education Expenses Education-related tax benefits can make a significant difference. · 529 Plans : Contribute to a 529 plan for tax-advantaged savings on future education expenses. · Education Credits : Consider whether you’re eligible for the American Opportunity or Lifetime Learning Credit. 5. Review Your Withholding and Estimated Payments Ensure you’re on track with tax payments to avoid surprises. · Withholding Adjustments : If your income changed significantly in 2024, update your withholding through your employer. · Estimated Taxes : Self-employed or investors should check their quarterly estimated payments. 6. Take Advantage of Tax Credits Don’t overlook valuable tax credits that can reduce your tax bill dollar for dollar. · Energy-Efficient Home Improvements : If you’ve made energy-efficient upgrades, you may qualify for a credit. · Child and Dependent Care Credit : Offset childcare expenses if you qualify. 7. Bunch Deductions If you’re close to the standard deduction threshold, consider bunching deductible expenses into one year. This strategy allows you to itemize deductions one year and take the standard deduction the next. 8. Consult a Tax Professional Tax laws change frequently, and what worked last year may not be the best strategy for 2024. Consulting with a professional can ensure you’re taking full advantage of available tax-saving opportunities. Let Acumen MB LLC Help You Prepare At Acumen MB LLC, we’re dedicated to helping our clients navigate the complexities of year-end tax planning. Whether you need guidance on optimizing deductions, managing investments, or preparing for future tax changes, we’re here to help. Contact us today to schedule your year-end tax planning consultation. Let’s work together to ensure a smooth and successful tax season ahead.

Unlocking the Power of Health Savings Accounts (HSAs) for National HSA Day

By Amanda Beder • December 6, 2024
At Acumen MB LLC, we believe in leveraging every tool available to maximize your financial well-being, and Health Savings Accounts (HSAs) are one of the most powerful tools in your financial toolkit. In honor of National HSA Day, let’s dive into the tax benefits and implications of using an HSA, and why it’s a smart move for your health and your wallet. What is an HSA? An HSA is a tax-advantaged savings account designed for individuals with high-deductible health plans (HDHPs). It allows you to save for medical expenses while enjoying significant tax advantages. Triple Tax Advantage of HSAs 1. Tax-Deductible Contributions Contributions to your HSA are either pre-tax (if made through an employer) or tax-deductible (if made personally). This reduces your taxable income, which can lower your overall tax liability for the year. 2. Tax-Free Growth Funds in your HSA grow tax-free. Whether your HSA balance earns interest or is invested, all growth is sheltered from taxes, allowing your savings to compound more effectively over time. 3. Tax-Free Withdrawals for Qualified Expenses Withdrawals used for qualified medical expenses are tax-free. These can include a wide range of expenses, from doctor visits and prescriptions to dental and vision care. Contribution Limits for 2025 For 2025, the contribution limits are: - Individual coverage : $4,350 - Family coverage : $8,750 - Catch-up contributions (age 55+): Additional $1,000 These increased limits provide even more opportunity to save while reducing taxable income. HSAs: More Than Just Medical Savings One unique aspect of HSAs is their flexibility: - Retirement Savings : After age 65, you can withdraw funds for any purpose without penalty (though non-medical withdrawals are taxed as income). - Long-Term Care and Medicare Premiums : HSA funds can be used for these expenses in retirement, making it a versatile tool for long-term financial planning. Potential Tax Implications While HSAs offer numerous benefits, it’s important to consider the following: - Non-Qualified Withdrawals : If you withdraw funds for non-qualified expenses before age 65, you’ll face a 20% penalty and income taxes on the amount. - Record-Keeping : To avoid penalties, keep detailed records of your medical expenses. Maximize Your HSA Benefits with Acumen MB LLC Understanding how to effectively use an HSA can make a significant difference in your financial health. Whether you’re planning for today’s medical expenses or looking ahead to retirement, Acumen MB LLC is here to help you navigate the tax advantages and ensure you’re making the most of this powerful savings vehicle. On National HSA Day, take a moment to review your contributions, maximize your savings, and plan for a healthier, wealthier future. Contact us today to learn more about HSAs and other tax-advantaged strategies tailored to your financial goals.
More Posts