Tax season is upon us, and with it come essential changes that could impact your filing. Staying informed on the latest IRS updates can help you maximize your deductions, avoid surprises, and ensure a smoother tax filing experience. Here’s what you need to know about the 2024 tax updates.
1. Adjusted Tax Brackets and Rates
The IRS has adjusted the tax brackets for 2024 to account for inflation. This means you may be in a different tax bracket, affecting your overall tax liability. Make sure to check which bracket applies to you based on your income.
2. Standard Deduction Increases
The standard deduction has increased for the 2024 tax year, offering a larger tax break for many filers. For individuals, the standard deduction is now $14,600, while married couples filing jointly can claim $29,200. This change may reduce your taxable income and increase your refund.
3. Child Tax Credit Updates
Families may see adjustments to the Child Tax Credit in 2024. The credit remains a crucial tax benefit for parents, so ensure you understand the eligibility requirements and apply for it if you qualify.
4. Retirement Contribution Limits
Planning for retirement? Good news! Contribution limits for 401(k) plans and IRAs have increased. Maxing out your contributions can build your retirement savings and reduce your taxable income.
5. Energy Efficiency Tax Credits
Are you thinking about making your home more energy-efficient? The federal government has extended and expanded credits for energy-efficient home improvements. Upgrading appliances, windows, or solar systems could mean significant tax savings.
6. Filing Deadline and Extensions
The federal tax filing deadline for most taxpayers is April 15, 2025. If you need more time, filing an extension will give you until October 15, but remember that any taxes owed are still due in April to avoid penalties.
For more detailed information, visit the official IRS website: IRS.gov.
Prepare with Confidence
Navigating tax changes can be overwhelming, but you don’t have to do it alone. At MacNeal CPA, we stay up-to-date on all the latest tax laws to ensure you get every deduction and credit you deserve. Whether you need help with tax planning, filing, or simply understanding how these updates affect you, our experienced team is here to help.
Get started today! Visit MacNeal-CPA.com and schedule a consultation to make the most of your 2024 tax return.