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2024 Tax Changes and Updates
Jan 8, 2024
The IRS recently released its new tax provisions and updates for the 2024 tax season. A few new things to consider this year include an increased standard deduction, increased retirement savings contributions, adjusted tax brackets, and a few key factors to account for inflation.
When can I file my taxes?
The IRS announced Monday, January 29th as the official start date for the 2024 tax season. Employers are required to have all W2’s mailed no later than January 31st. Independent contractors should also be on the lookout for a 1099 from their client(s). A few other forms that may or may not be needed include:
- Mortgage interest statements
- Charitable contribution statements
- Third party payment transaction statements (i.e. Cashapp, Venmo, Paypal)
- Investment income statement(s)
- Dependent care credit statements
** Please refer to the tax checklist for all other forms and statements that may be applicable.
2023 Tax Income Tax Rates and Brackets
(For the 2024 tax filing year)
| 2023 Marginal Tax Rates | Single Tax Bracket | Married Filing Jointly Tax Bracket | Head of Household Tax Bracket | Married Filing Separately Tax Bracket |
| 10% | $0 to $11,000 | $0 to $22,000 | $0 to $15,700 | $0 to $11,000 |
| 12% | $11,001 to $44,725 | $22,001 to $89,450 | $15,701 to $59,850 | $11,001 to $44,725 |
| 22% | $44,726 to $95,375 | $89,451 to $190,750 | $59,851 to $95,350 | $44,726 to $95,375 |
| 24% | $95,376 to $182,100 | $190,751 to $364,200 | $95,351 to $182,100 | $95,376 to $182,100 |
| 32% | $182,101 to $231,250 | $364,201 to $462,500 | $182,101 to $231,250 | $182,101 to $231,250 |
| 35% | $231,251 to $578,125 | $462,501 to $693,750 | $231,251 to $578,100 | $231,251 to $346,875 |
| 37% | $578,126 or more | $693,751 or more | $578,101 or more | $346,876 or more |
Form 1099-K (Third Party Payments)
Taxpayers who received third-party payments in the tax year 2023 for goods and services that exceeded $600 should receive form 1099-K: Payment card and third- party network transactions.
For the tax year in question, payments exceeding $600 will require the third-party platform to issue a 1099-K. The net effect of this change is that a vast array of taxpayers will receive 1099-Ks for business payments only.
*** Please note that third party payments received from family, friends, personal gifts, or reimbursements for personal expenses is NOT taxable and as a result does not apply to the tax law.
Standard Tax Deduction
The standard deduction rose $1,500 from 2023 to $29,200 for married couples filing jointly. Single taxpayers and married individuals filing separately can take a standard deduction of $14,600, an increase of $750. Heads of households get a $21,900 standard deduction, up $1,100 from the previous tax year.
Retirement Savings Contributions
The most an employee can contribute to a 401(k) plan in 2024 will be $23,000, a $500 increase from 2023. This limit also applies to 403(b) and most 457 plans, as well as the Thrift Savings plan for federal employees. For people with Individual Retirement Accounts, the limit was raised to $7,000 from $6,500. The IRA catch-up contribution limits to retirement plans for people aged 50 and over were not changed.
Gift Tax Limit
The amount of the annual exclusion for gifts rises from $17,000 to $18,000, up $1000 from the previous tax year.
*** Please refer to your tax preparer if you have any questions or concerns regarding any of these changes. We look forward to hearing from you.