Reliable Tax Attorney
CONTACT US FOR A FREE CONSULTATION
tel:410.358.1500
It’s never too early to start planning for next year’s tax season. Staying up-to-date on the latest IRS changes can help you estimate how much tax you’ll have to pay and how you should manage your finances ahead of time.
Let’s go through the five biggest IRS tax changes for 2024 so you can know what to expect when it’s time to file your return.
The standard deduction increases for tax year 2024:
You can also itemize your deductions on your tax returns, but many taxpayers opt for the standard deduction because it’s simpler.
The IRS is introducing tax bracket changes in 2024, which could lower your tax bill. For example, single taxpayers who earned $46,000 in tax year 2023 were in the 22% bracket. For 2024, they’re in the 12% bracket.
As of 2024, you can also increase your contributions to your tax-advantaged retirement savings plan. The contribution limit for 401(k) and 403(b) plans increases to $23,000 annually. If you’re over 50, you can contribute an additional $7,500.
Itemizing your deductions rather than taking the standard deduction may get you increased tax credits and deductions. For example, you may qualify for the earned income tax credit in tax year 2024 even if you didn’t qualify in 2023.
Another change that’s caught some attention is a capital gains tax on unrealized income. This proposed change would impose a 25% minimum tax on total income or asset growth exceeding $100 million. It’s referred to in the news and on social media as the billionaire minimum tax. It’s still a proposal, however, and would only affect taxpayers whose net worth is above $100 million.
Getting your books in order can be tedious. You don’t want to make any mistakes and risk getting audited by the IRS. When you’re planning for the next tax year, it helps to have professional advice from skilled tax attorneys like the team at Gabaie & Associates, LLC. We help taxpayers in Baltimore, Columbia, Frederick, Rockville, and all over Maryland. Call us at (410) 358-1500 or fill out our online form to get help with your tax return.
The information contained in this website is provided for informational purposes only and may not reflect the most current legal developments, and should not be construed as legal advice on any matter. The transmission and receipt of information contained on this Web site, in whole or in part, or communication with Gabaie & Associates, LLC via the Internet or e-mail through this website does not constitute or create a lawyer-client relationship between us and any recipient. You should not send us any confidential information in response to this webpage. Such responses will not create a lawyer-client relationship, and whatever you disclose to us will not be privileged or confidential unless we have agreed to act as your legal counsel and you have executed a written engagement agreement with Gabaie & Associates, LLC. Contact a licensed attorney for advice in specific legal issues.
