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Are you ready for tax season 2024? With new updates to tax laws, deductions, and credits, it's essential to understand how these changes might impact your finances. At Premier Tax Experts, we’re here to simplify the process and help you make the most of your tax return this year.
What's New 2024 Tax Season
Standard Deduction Increase
The standard deduction has increased for all filing statuses:
- Single filers: $14,600 (up from $13,850)
- Married filing jointly: $29,200 (up from $27,700)
- Head of household: $21,900 (up from $20,800)
Tax Bracket Adjustments
Tax brackets have been adjusted for inflation, potentially allowing taxpayers to keep more of their 2024 income.
1099-K Reporting Changes
The reporting threshold for Form 1099-K has decreased to $5,000 in gross payments, down from $20,000 in 2023. This change affects those receiving payments through third-party networks like PayPal, Venmo, or eBay.
Retirement Account Contribution Limits
Contribution limits for tax-advantaged retirement savings accounts have increased.
Capital Gains Tax Threshold
Individual tax filers won't pay capital gains tax if their total taxable income is $47,025 or less, up from $44,625 in 2023
Other Notable Changes
- Social Security tax limit increased to $168,600
- Alternative Minimum Tax (AMT) exemption amount raised to $85,700 for individuals
- Annual gift tax exclusion increased to $18,000
- Foreign earned income exclusion raised to $126,500
- Estate tax exemption increased to $13.6 million
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