As you start preparing documents to file your taxes, you must be up to date on the latest updates. Navigating the 2024 tax season starts with considering the new adjustments in tax brackets and how they can affect you.
While tax returns aren’t due until the middle of April, the Internal Revenue Service (IRS) will accept submissions from early January. By taking a proactive approach and being informed and diligent in the 2024 tax season, you can optimize your financial outcomes and stay compliant with tax laws. Use this guide to find important information and confidently prepare for the new tax season.
It is important to note the difference between tax year and tax season. The tax year is when you earn an income, making you responsible for paying income taxes. Tax season is the time to file your taxes for the last tax income year. Tax brackets for the 2023 tax year are:
|MARGINAL TAX RATES
|SINGLE TAX BRACKET
|MARRIED FILING JOINTLY
|HEAD OF HOUSEHOLD
|MARRIED FILING SEPARATELY
Tax deductions can help to lower your taxable income, while tax credits are the dollars subtracted from your tax bill. If your credit is more than the amount of tax you owe and is refundable, you will receive a refund. Nonrefundable credits will only reduce your tax liability to zero. Potential deductions and credits you need to consider include:
The new 1099-K policies are delayed, so no immediate changes are coming to your upcoming tax season if you sell goods or services online. These changes will only take effect in 2025.
Staying updated on tax amendments is vital, whether you are filing as an individual or a business. The new tax rules for the 2024 tax season can shape your financial strategies, influence your decision-making processes and impact your personal finances or corporate structures.
The standard tax deduction for tax year 2023 increased. For single filers and married people filing separately, the standard deduction is $13,850. It’s $27,700 for jointly filing married couples and $20,800 for heads of households.
The AMT tax system helps to ensure that high-income taxpayers pay a minimum tax amount. High earners may need to use AMT rules rather than standard rules to calculate their tax obligation. For taxes due in 2024, the exemptions and phase-out amounts increased to:
|Married Filing Jointly
|Married Filing Separately
|Exemption Phase-out Amount
For the 2024 tax season, several new tax credits launched in association with the Inflation Reduction Act. These credits include a credit of up to $7,500 for individuals who purchased new clean vehicles in 2023 and credits for making energy-efficient home improvements.
401(k) and 403(b) contributions are not tax-deductible at the time of filing. Because these contributions are made with pre-tax dollars, they’re already excluded from a taxpayer’s taxable income and don’t qualify for additional deductions.
Roth IRA contributions are not tax-deductible. Contributions to a traditional IRA may be tax-deductible. If you or your spouse are part of an employer-sponsored plan, your IRA deductions may be reduced based on your income:
In addition to tax changes affecting most Americans, there are several minor changes. These changes include:
When is tax season 2024? The deadline for filing your federal tax returns and making tax payments is April 15, 2024. If you request an extension, the last day of tax season 2024 is October 15, 2024. Follow these steps to file your taxes in 2024 for an accurate and smooth process:
You might need to gather a few forms come tax season. From your W-2 to various 1099s, you’ll likely have much to keep track of. Depending on your financial circumstances and activities, these forms and some additional ones may apply. While not all of these forms apply to every tax filer, common tax forms you might need include:
In straightforward cases, after processing your tax return, the IRS will issue your refund within 21 days. To avoid delays, ensure that your documents are accurate and transparent. Provide the correct personal information, deductions you want to claim and precise income reports.
You can opt for e-filing or a direct deposit to speed up your refund process. In-person filing and opting to receive your check by mail might cause additional delays. You can also monitor your refund status on the IRS website or mobile app.
Using a tax attorney to help you file your 2023 taxes can give you peace of mind with comprehensive guidance. They can help ensure you adhere to tax laws and use all the relevant tax credits. A tax attorney can also be beneficial in several other ways:
If you are unsure about hiring the services of a tax attorney, you may benefit in the following situations:
Educate yourself about essential tax changes that may impact your filing before the 2024 tax season begins. You can streamline your tax filing process by organizing your financial documents, seeking professional guidance, and using the deductions and credits available.
If you need help filing your 2024 tax return or owe back taxes from unfiled returns or previous taxes, we can help. Since 2001, Polston Tax has offered small business tax accounting and resolution services. Contact us today for a free consultation or assistance with your 2024 tax season queries, or call us at 844-841-9857 for more information.
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