In this one-minute moment, Dr. Friday discusses the importance of above-the-line deductions in reducing your taxable income. These deductions, which include contributions to retirement accounts, health savings accounts, and student loan interest, are taken before calculating your tax liability. By maximizing these deductions, you can potentially lower your tax bill while also saving for your future. Dr. Friday emphasizes the significance of these deductions but also reminds listeners that they should not be the only factor in their financial decision-making process.
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 right here on 99.7 WTN.