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Maximizing Tax Savings for High-Income W-2 Employee
High-earning W-2 used deduction bunching for relief.
Overview
A high-earning W-2 employee approached Pulse CPA seeking ways to reduce their growing tax liability. Despite a stable income and solid benefits, they felt like they were paying more in taxes than necessary and weren’t fully leveraging the available strategies for high-income earners. Our initial assessment revealed that while the client was doing many things right, there were untapped opportunities in their itemized deductions and underutilized tax-advantaged accounts. Pulse CPA proposed a customized plan that focused on timing, structure, and the coordination of expenses.
Results
We implemented a bunching strategy for itemized deductions—consolidating deductible expenses into a single tax year rather than spreading them out—creating greater deductibility in alternating years. Additionally, we advised max contributions to an HSA (Health Savings Account) and introduced a 529 college savings plan, which offered further tax benefits at both the federal and state levels. These combined strategies resulted in over $33,000 in tax savings in just the first year. Beyond the financial outcome, the client also gained peace of mind and a clear roadmap for future years.
Conclusion
This case highlights how even high-earning W-2 employees—who often assume there’s little room for savings—can benefit significantly from personalized planning. Pulse CPA's ability to identify overlooked deductions, optimize account usage, and time key expenses transformed the client’s tax outcome. For professionals with consistent income and limited write-offs, having a proactive advisor makes all the difference.
Get a Free Consultation
A free consultation with Pulse CPA gives you the chance to get clear, expert insight into your finances - without the pressure or commitment. It’s your first step toward personalized, strategic accounting support that helps you run your business with more confidence and less stress.
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