The Challenge: A high-income medical professional was aggressively paying off student debt and donating to charity but was phased out of most standard tax deductions due to their high income bracket. The Moorhead Financials Solution: * We implemented a “bunching” strategy for their charitable contributions, grouping two years of donations into one tax year to push them well over the standard deduction threshold.
- We also guided them through a backdoor Roth IRA conversion. The Result: By strategically timing their deductions, we drastically lowered their adjusted gross income for the year, securing a $26,500 IRS tax refund.