The tax year 2024 adjustments generally apply to income tax returns filed in 2025. Key tax items for 2024 include the following dollar amounts:
The standard deduction for married couples filing jointly for tax year 2024 rises to $29,200, an increase of $1,500 from tax year 2023.
For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023; and for heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.
Marginal rates: For tax year 2024, the top tax rate remains 37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly).
In tax year 2024, the Alternative Minimum Tax exemption starts at $85,700 and starts to decrease at $609,350 ($133,300 for married couples filing jointly, where the exemption starts to decrease at $1,218,700). In contrast, the exemption amount for 2023 was $81,300 and started to phase out at $578,150 ($126,500 for married couples filing jointly, where the exemption began to phase out at
$1,156,300).
In tax year 2024, qualifying taxpayers with three or more qualifying children can receive a maximum Earned Income Tax Credit of $7,830, up from $7,430 in tax year 2023. The revenue procedure includes a table that outlines the maximum EITC amount for different categories, income thresholds, and phase-outs.
For tax year 2024, the monthly limitation for the qualified transportation fringe benefit and the monthly limitation for qualified parking increases to $315, an increase of $15 from the limit for 2023.
For the tax year 2024, individuals who have self-only coverage in a Medical Savings Account are required to have an annual deductible that falls within the range of $2,800 (an increase of $150 from 2023) to $4,150 (an increase of $200 from 2023). The maximum out-of-pocket expense for self-only coverage is now $5,550 (a $250 increase from 2023). In 2024, family coverage should have an annual deductible ranging from $5,550 (up by $200 from 2023) to $8,350 (increased by $450 from 2023). The out-of-pocket expense limit for family coverage is $10,200 in 2024, up by $550 from 2023.
In 2024, the maximum credit permitted for adoption is equal to the qualified adoption expenses, capped at $16,810, which is higher than the $15,950 limit set for 2023.
To receive additional business and tax information, sign up for Zoe Financial Provision's newsletter at www.zfp2.com.
Comments