What You Need to Know About 2024 Tax Updates
Every year there are changes to tax laws.
The IRS began accepting e-filed returns on January 29, 2024. However, there is a 78 Billion Dollar Tax Bill (called Tax Relief for American Families and Workers Act of 2024) that Congress has approved. It is not with the Senate waiting for approval there. If approved, there may be changes that affect your 2023 filing, so it may be a good idea to wait to file your return. There may be lots of changes still coming.
Here are some of the high points to changes for 2024 as of the date this video was released:
Standard Deduction has been increased and indexed for inflation so if you are single, it is now $14,600. Head of Household has increased to $21,900. Married Filing Joint is $29,200. Keep these amounts in mind for amounts you can pay your children and what you need to reach in order to be able to itemize.
The standard mileage rate has increased to $.67 per mile for business and $.21 for military or medical. Don't underestimate the tax benefit the standard mileage rate can generate for you when you are driving for business purposes.
Solo 401K contributions for 2024 have gone up to $23,000 with catch up contributions of $7,500 and total contributions of $69,000.
Bonus Depreciation for 2024 is currently at 60%. This is one that will be a big change if the proposed tax bill is approved and may retroactively go back to 100% of 2023. Pay attention to this.
In order to contribute to a Health Savings Account your minimum deductible needs to be $3,200 for a family and $1,600 if you are single. Maximum contributions are $4,150 if you are single and $8,300 for a family plan with $1,000 catch up contribution if you are over 55.
These are some of the tax amount changes, and as I said more changes may be coming soon so stay tuned!
With every episode of Linda Tuttle Adventuring Accountant TV, I like to equip you with a free resource that goes with the episode for the week.
This week's episode is all about how owning your business can be a good thing for your life. I talk about converting personal expenses into business expenses. I put together a new free resource called 10 Essential Tax-Saving Strategies for Entrepreneurs. I'm excited to share this with you.
After going through this guide, you will have some real strategies you can implement in your business right away.
You can download the FREE resource by clicking the orange button above.
You can download this FREE resource by clicking the yellow button below