Some information and facts about taxes in 2024. Here are some points you may want to consider:


.  The federal income tax brackets and rates for 2024 have been adjusted for inflation. There are seven tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The top marginal rate of 37% applies to single filers with incomes above $609,350 and married couples filing jointly with incomes above $731,200


.  The standard deduction for 2024 has increased by $750 for single filers and by $1,500 for joint filers. The standard deduction amounts are $14,600 for single filers, $29,200 for married couples filing jointly, and $21,900 for heads of households Seniors over age 65 may claim an additional standard deduction of $1,950 for single filers and $1,550 for joint filers


.  The retirement contribution limits for 2024 have also increased. The limit for 401(k), 403(b), and most 457 plans is $21,000, up from $20,500 in 2023. The limit for individual retirement accounts (IRAs) is $7,000, up from $6,500 in 2023. The catch-up contribution limit for those age 50 and over remains unchanged at $6,500 for 401(k) plans and $1,000 for IRAs


.  The gift tax exclusion for 2024 is $16,000 per recipient, up from $15,000 in 2023. This means that a person can give up to $16,000 to any number of people without triggering the gift tax or using up their lifetime exemption. The lifetime exemption amount for 2024 is $12.06 million, up from $11.7 million in 2023


.  The phase-out levels for IRA deductions, Roth IRA contributions, and the Saver's Credit have also increased for 2024. The phase-out ranges depend on the taxpayer's filing status, modified adjusted gross income (MAGI), and whether they are covered by a workplace retirement plan. For example, the phase-out range for IRA deductions for single filers who are covered by a workplace plan is $69,000 to $79,000, up from $67,000 to $77,000 in 2023. The phase-out range for Roth IRA contributions for married couples filing jointly is $206,000 to $226,000, up from $201,000 to $221,000 in 2023. The phase-out range for the Saver's Credit for single filers is $20,500 to $34,000, up from $20,000 to $33,000 in 2023


These are some of the major tax changes that will affect taxpayers in 2024. You can find more information on the IRS website or consult a tax professional for advice.

Source: Bing ai

Accounting/Tax Service

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