TAX & ACCOUNTING SERVICES
2024 Tax Season
Standard deduction
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Single or Married Filing Separately = $14,600.
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Married Filing Jointly or Qualifying Surviving Spouse = $29,200.
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Head of Household = $21,900.
2024 - Tax Brackets
Understanding Your Bracket
Other Factors to Consider
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Filing Status
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Dependents
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Age
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Profession
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Self-Employment
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Retirement Income
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State Taxes
Key Tax Updates for 2024
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IRA Contribution Limits: The 2024 contribution limit for IRAs is $7,000 for individuals under the age of 50, and $8,000 for those aged 50 and above.
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Electric Vehicle (EV) Tax Credit: Taxpayers purchasing an electric vehicle in 2024 may be eligible for a tax credit of up to $7,500. This credit can also be transferred to the dealer at the time of purchase to reduce the vehicle's upfront cost.
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Flexible Spending Accounts (FSA): The 2024 contribution limit for FSAs is $3,200.
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Gift Tax Exemption: In 2024, individuals can gift up to $18,000 per recipient without incurring gift taxes.
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529 to Roth IRA Rollover: Funds remaining in a 529 education account can be rolled over to a Roth IRA tax-free, subject to a lifetime cap of $35,000. Annual rollover amounts are limited to the Roth IRA contribution limit, which is $7,000 for 2024, and the 529 account must have been open for at least 15 years.
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Roth 401(k) Changes: Owners of Roth 401(k) plans are no longer required to take required minimum distributions (RMDs), aligning with the existing rules for Roth IRAs.
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401(k) Contribution Limits: The 2024 contribution limit for 401(k) plans is $23,000. Individuals born before 1975 may contribute an additional $7,500 as a catch-up contribution.
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SIMPLE IRA Contribution Limits: The 2024 contribution limit for SIMPLE IRAs is $16,000, with an additional catch-up contribution of $3,500 for individuals aged 50 and older.
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Bonus Depreciation: In 2024, the first-year bonus depreciation rate decreases to 60% for qualifying business assets with a useful life of 20 years or less, down from 80% in 2023.
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20% Deduction for Pass-Through Income: The qualified business income (QBI) deduction for pass-through entities remains at 20% in 2024. However, the taxable income threshold for limitations is $383,900 for joint filers and $191,950 for others.
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Standard Mileage Rates: The standard mileage rate for business use in 2024 is 67 cents per mile. The rate for medical and military moving expenses is 21 cents per mile, while the charitable driving rate remains at 14 cents per mile.
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Form 1099-K Reporting Threshold: For 2024, payments totaling $5,000 or more will require reporting using Form 1099-K.
Here are some Not Confirmed Tax Proposals
These are not Confirmed
These are not Tax Laws
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Making the 2017 Tax Cuts Permanent: Potentially including even lower tax rates.
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Increasing the Child Tax Credit: Expanding benefits for families.
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Lowering Corporate Tax Rates: Dropping the corporate tax rate to 15% for many C corporations.
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Introducing High Tariffs on Imports: Imposing significant across-the-board tariffs on imported goods.
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Eliminating Green-Energy Tax Breaks: Phasing out many tax incentives introduced in the 2022 Inflation Reduction Act.
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Reversing Obamacare Subsidy Expansions: Ending the 2021 and 2022 expansions that allowed more people without affordable workplace health coverage to qualify for premium tax credits.
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Exempting Tips from Taxation: Making gratuities nontaxable income.
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Revising Interest Rate Policies: Intends to influence Federal Reserve policies to achieve lower interest rates, potentially through strategic appointments.
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Reducing Energy Costs: Plans to halve energy bills by increasing domestic energy production and reducing regulations on fossil fuel industries.
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Repealing the $10,000 Cap on State and Local Tax (SALT) Deductions: Seeks to remove the current limitation on SALT deductions, which could benefit taxpayers in high-tax states.
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Reducing Taxes on Social Security Benefits: Plans to lower taxes on Social Security income to increase retirees' disposable income.