Taxes can be a bit of a moving target, can't they? To help you stay ahead of the game, I'm planning to launch a newsletter. It'll be packed with tips and updates on how we can work together to lighten your tax load.

You may have noticed an email about being added to a new client portal with TaxDome. Don’t worry! It’s not a scam! Beginning this tax season, I have decided to invest in providing a first-class experience to my tax clients with TaxDome.

TaxDome is a secure, intuitive client portal that is user-friendly even to those who aren’t tech savvy. Everything in one place: you can electronically sign documents, settle invoices, complete organizers, sign proposals without going to multiple websites all from the comfort of your mobile phone or computer Secure exchange of information & safety of your personal data. TaxDome has a built-in secure messaging system, where we can request information we need from you or chat in real time. If we need you to do something, you will receive timely notifications and will see an easy-to-read to-do list. The client portal is mobile friendly, so you can access it anytime, anywhere!

You can access to portal at https://portal.capitalcompasstax.com/. Feel free to reach out if you have any questions about getting set up.

Trump accounts are officially here, kind of… This tax season, you can now sign up for a Trump Account directly with your filing with Form 4547. The account itself will be transferred to approved institution at a later date.

Trump accounts (or 503A accounts) are tax-advantaged IRA-like accounts for U.S. citizens under the age of 18. Unlike IRAs, contributions can be made even if the child does not have earned income. Contributions can be made with after-tax dollars up to $5,000. In addition, children born between January 1, 2025, and December 31, 2028 are eligible to receive a “pilot” contribution of $1,000.

What’s the catch? No withdrawal can be made until the child turns 18, and investment options will be limited; generally low-cost stock index mutual funds or ETFs. Gains will grow tax-free, but will be taxed as ordinary income upon withdrawal (this includes the $1,000 pilot contribution).

There are many factors that will determine whether choose a Trump account over a UTMA, IRA, or 529. Feel free to reach out to have a discussion any time.

I’m proud to introduce a new tool I have developed, HSALog. If you are eligible for an HSA, it is by far one of the most tax-efficient savings accounts you can have. The account provides for triple tax advantage with pre-tax contributions, tax-free gains (unless you are in the State of California), and tax-free distributions for eligible medical expenses. There is no time limitation for making a claim, except that the expense must have occurred after the account is established. This means you can keep receipts and hold out for reimbursement at a later time. This is where HSALog comes in to help.

HSALog helps you track all your medical expenses and receipted. HSALog will be free for Capital Compass Tax and Finance clients. Once you have created an account, email me at [email protected] to get full unlimited access.

Feel free to give it a try, I am open to feedback on improvements I can make to the tool!

401(k)
$24,500 per employee with a $8,000 catch-up contributions for those 50+, and a special "super catch-up" of $11,250 for ages 60-63.

Individual Retirement Account (IRA) including Roth
$7,500 per taxpayer with a $1,100 catch-up contribution for those 50+.

Health Savings Account (HSA)
$4,400 for self-only coverage and $8,750 for family coverage, with a $1,000 catch-up contribution for those 55+.

Dependent Care Flexible Spending Accounts (FSAs)
Permanently increased to $7,500.

Maryland 529
Remains at $5,000 per taxpayer.

Trump Account
$5,000 per child.

With the start of the tax season, things can get hectic, but I’m here to help. Feel free to reach out any time if you have an questions. I’m hoping the recent addition of TaxDome and HSALog will provide more value to you as we work together.

Stay warm and cozy!