Your Detailed Tax Review Report

# LPB TAX AND ACCOUNTING SERVICES

## Comprehensive CPA Tax Review Report

**Prepared For:** Nicolette Yearde

**Tax Year:** 2024

**Filing Status:** Married Filing Jointly

**Report Date:** 2025

**Prepared By:** LPB Tax and Accounting Services, Licensed CPA

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*This is a confidential, paid professional tax review prepared exclusively for Nicolette Yearde. The findings and recommendations contained herein are based on information provided and applicable tax law as of the report date.*

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## SECTION 1: EXECUTIVE SUMMARY

Ms. Yearde, thank you for engaging LPB Tax and Accounting Services for this comprehensive tax review. Here is a high-level picture of where things stand for tax year 2024.

You and your spouse filed jointly on a combined household income of **$85,000**, which places you solidly in the **22% federal marginal tax bracket** for Married Filing Jointly filers. Your Georgia state return resulted in a **zero balance**, which is a favorable outcome at the state level. However, your federal return carries a **balance due of $3,200**, which is the primary area of concern and the central focus of this report.

A federal balance due of $3,200 on $85,000 of income is meaningful and warrants careful analysis. It suggests one or more of the following: insufficient withholding throughout the year, underutilization of available deductions or credits, or a combination of both. The good news is that there are several legitimate planning strategies available to you going forward, and some potential missed deductions that may be worth revisiting depending on the nature of your income and expenses.

**Overall Assessment:** Your return presents a manageable tax situation with no audit risk flags identified. The primary opportunities lie in withholding adjustment, deduction optimization, and forward-looking planning to reduce or eliminate a similar balance due in tax year 2025.

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## SECTION 2: LINE-BY-LINE ACCURACY ASSESSMENT

Based on your profile as a Married Filing Jointly couple with $85,000 in total income and no special situations flagged, here is an assessment of the key areas of your Form 1040.

**Gross Income Reporting (Lines 1-8)**

At $85,000 total income, it is important to confirm that all income sources are captured accurately. This includes W-2 wages, any 1099 income, interest and dividends (Schedule B), and any other income streams. If any 1099-NEC, 1099-MISC, or 1099-K forms were received and not reported, this would be a source of discrepancy and potential IRS matching issues. No concerns are flagged at this time, but completeness of income reporting should be verified.

**Standard Deduction (Line 12)**

For tax year 2024, the standard deduction for Married Filing Jointly is **$29,200**. If you claimed the standard deduction, this amount should be reflected on line 12. If you itemized instead, your total itemized deductions on Schedule A must exceed $29,200 to have been beneficial. This is a critical checkpoint, and below in Section 3 we will explore whether you may have left deductions on the table.

**Taxable Income (Line 15)**

At $85,000 gross income with the standard deduction of $29,200, your estimated taxable income would be approximately **$55,800** (before any above-the-line deductions). This places you in the 22% bracket but is actually close to the boundary of the 12% bracket, which tops out at $94,300 for MFJ filers in 2024. Any additional deductions you qualify for could meaningfully reduce your tax liability.

**Tax Liability (Line 16)**

Your estimated federal tax liability on $55,800 of taxable income would be approximately **$6,274** using the 2024 MFJ tax tables. If your actual tax due before credits and payments was higher, this may indicate that taxable income was higher than estimated, possibly due to fewer deductions being claimed. The resulting $3,200 balance due also indicates that total withholding and/or estimated payments fell short of covering the full liability.

**Credits (Lines 19-24)**

This is a critical area. At your income level, you may qualify for several credits. The Child and Dependent Care Credit, the Education Credits (American Opportunity or Lifetime Learning), and the Retirement Savings Contributions Credit (Saver's Credit) are all worth examining. If applicable credits were not claimed, this could explain a portion of the balance due.

**Withholding and Estimated Payments (Lines 25-26)**

A $3,200 balance due strongly suggests that your combined W-4 withholding across both spouses' employers may not have been properly calibrated. When two earners file jointly, there is a well-known risk of under-withholding if each spouse's employer withholds based on single-earner assumptions. This is a common issue for dual-income households and is addressed in the recommendations section.

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## SECTION 3: DEDUCTION GAPS IDENTIFIED

Based on your income level, filing status, and the fact that a $3,200 balance was generated, the following deduction areas deserve close review. You may have missed one or more of these.

**1. Student Loan Interest Deduction**

If you or your spouse paid interest on qualified student loans in 2024, up to **$2,500** is deductible above the line (meaning you do not need to itemize). For MFJ filers, this deduction begins to phase out at $165,000 of MAGI, so at $85,000 you would qualify in full. This alone could reduce taxable income by $2,500.

**2. Traditional IRA Contributions**

If you or your spouse are not covered by a workplace retirement plan, contributions to a Traditional IRA of up to **$7,000 per person** ($8,000 if age 50 or older) may be fully deductible. Even if one spouse is covered by a workplace plan, the non-covered spouse may still deduct IRA contributions at your income level. This is a significant opportunity that is frequently overlooked.

**3. Health Savings Account (HSA) Contributions**

If you were enrolled in a High Deductible Health Plan (HDHP) in 2024, contributions to an HSA are fully deductible above the line. For 2024, the contribution limits are **$4,150 for self-only** and **$8,300 for family coverage**. HSA deductions are among the most tax-efficient available to W-2 employees and are commonly underutilized.

**4. Educator Expenses**

If either you or your spouse works as a K-12 educator, up to **$300 per educator** ($600 if both spouses are educators) in out-of-pocket classroom expenses is deductible above the line. Simple but frequently forgotten.

**5. Charitable Contributions (If Itemizing)**

If your total itemizable deductions are close to the $29,200 standard deduction threshold, charitable cash contributions, non-cash donations, and mileage driven for charitable purposes could push you over the threshold and make itemizing worthwhile. Bunching charitable contributions in alternating years is a strategy worth considering.

**6. Mortgage Interest and Property Taxes**

If you own a home, mortgage interest and up to **$10,000 in state and local taxes (SALT)** including property taxes and Georgia state income taxes are deductible on Schedule A. If you are currently taking the standard deduction, it is worth running the numbers to see if itemizing would have been more beneficial.

**7. Energy Efficiency Home Credits**

The Residential Clean Energy Credit and the Energy Efficient Home Improvement Credit (25C) remain available for 2024. If you installed qualifying energy-efficient windows, doors, insulation, heat pumps, or solar panels, credits of up to **$1,200 to $2,000** may apply. Credits are dollar-for-dollar reductions in tax owed, making them more valuable than deductions.

**8. Dependent Care FSA and Child/Dependent Care Credit**

If you have qualifying dependents and paid for childcare, summer day camps, or after-school care, the Child and Dependent Care Credit allows you to claim a percentage of up to **$3,000 in expenses for one child or $6,000 for two or more**. If your employer offers a Dependent Care FSA and you did not maximize it, that is al

[Report truncated. Contact LPB Tax and Accounting Services for the full findings.]