2024 Tax Reference Guide
By TRG Advisors on January 3, 2024
The new year brings new tax brackets, deductions and limits that will impact your 2024 federal income tax return.
As tax planning conversations commence with our team and your tax professionals for 2024, make note of a few key changes and inflation adjustments by the IRS.
Standard Deductions Change:
- According to the IRS, the standard deduction for married filing jointly will rise to $29,200 in 2024, increased by $1,500 from 2023.
- For single taxpayers and married individuals filing separately, the standard deduction has risen to $14,600, increased by $750 from 2023.
- For heads of households, the standard deduction will rise to $21,900, increased by $1,100 from 2023.
Federal Tax Brackets:
- For 2024, the tax rates will remain unchanged at 10%, 12%, 22%, 24%, 32%, 35% and 37%. However, the income brackets have been adjusted to account for inflation.
Retirement Plan Contributions:
- In 2024, the IRS has raised the contribution limits for a 401k and 403b to $23,000 – up by $500. Meanwhile, workers who are older than 50 years old are eligible for an extra catch-up contribution of $7,500, unchanged from 2023.
IRAs:
- Contribution levels for IRAs in 2024 have increased $500. The total contribution you can make this year is $7,000, or $8,000 for those 50 or older.
Gift Tax Exemption:
- The annual gift tax exclusion will increase to $18,000, increased by $1,000 from 2023. As a result, individuals will be able to give $18,000 per year ($36,000 for a married couple) to any number of persons tax-free.
Below is a comprehensive tax reference guide covering filing dates, tax rate schedules, and deductions. Please do not hesitate to contact us should you have any questions. As always, we look forward to assisting you this tax season.
