2024 SUMMARY OF THINGS TO KNOW
💸Income Tax Brackets: Shifted a little.
🧾Standard Deduction: Increased slightly to $29,200.
📑 Itemized Deduction Items: Mostly the same.
🌐 IRA and 401 Contribution Limits: Slightly higher, IRA max $7,000 and 401k max is $23,000 .
💰 HSA Accounts: Save a bit more this year.
🌿 Energy Tax Credit: Applies to energy improvements in your home or the purchase of a qualified EV automobile.
💸 Bonus Depreciation: Decreased to 60% (from 80% in 2023) for qualified property.
📑 1099-K Reporting: Third party payment processors must issue a 1099-K for transactions over $600.
💰 Qualified Business Income Deduction: Still available, but it is currently set to expire in 2025.
In 2025, the Tax Cuts and Jobs Act (TCJA) Provisions is currently set to expire: this could result in higher tax rates and reduced standard deduction.
To learn more about how this may affect you, and how to plan for addressing your potential 2025 tax liability, please CLICK below to schedule a Tax Planning and Strategy appointment with us