In this episode of ‘Dr. Friday Tax Tips – One Minute Moment,’ Dr. Friday highlights the significance of above the line deductions in tax planning. These deductions include contributions to retirement accounts, health savings accounts, and student loan interest. By utilizing these, taxpayers can reduce their taxable income before their tax liability is calculated, leading to potential tax savings and enhanced future savings. Dr. Friday emphasizes the importance of considering these deductions in one’s financial strategy, while also reminding listeners that they shouldn’t be the sole focus. For personalized advice, Dr. Friday encourages contacting her office or visiting her website.
Transcript
G’day, I’m Dr. Friday, President of Dr. Friday’s Tax and Financial firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Above the line deductions. What is it? A contribution to a retirement account. That’s an above the line. Health savings accounts. You know I love my health savings accounts. Student loan interest is above the line. That means that we’re basically taking those deductions before we even look at how much money you’re going to owe in taxes. So from a tax standpoint we’d like to get as much as we can in the above the line deduction so that you pay less in taxes and maybe you’re saving more for the future. It’s important but not always the only thing you should be thinking about. So you should call me at 615-367-0819 or check me out at drfriday.com.
You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.