Americans are facing a long list of tax changes for the 2024 tax year. They will possibly affect your tax filing due in 2025.
One of changes that most of our clients will see the effect from is this:
The standard deduction amounts were increased for 2022 to account for inflation. Married couples get $25,900 ($25,100 for 2021), plus $1,400 for each spouse age 65 or older ($1,350 for 2021). Singles can claim a $12,950 standard deduction ($12,550 for 2021) — $14,700 if they're at least 65 years old ($14,250 for 2021).
The standard deduction amounts were increased for 2022 to account for inflation. Married couples get $25,900 ($25,100 for 2021), plus $1,400 for each spouse age 65 or older ($1,350 for 2021). Singles can claim a $12,950 standard deduction ($12,550 for 2021) — $14,700 if they're at least 65 years old ($14,250 for 2021).
Is there a tax credit for buying a house in 2022 IRS? Yes! Assuming a 5 percent inflation rate for 2021 and 2022, the maximum first-time home buyer tax credit would increase as follows over the next two years: 2022: Maximum tax credit of $15,750. 2023: Maximum tax credit of $16,538.
Here's an excerpt from the Tax law changes, regarding: 401(k) and IRA Limits Increased for 2023
The amount individuals can contribute to their 401(k), 403(b), most 457 and the federal government's Thrift Savings Plan accounts increases to $22,500 for 2023, the IRS has announced. That is an increase of $2,000 from 2022. The IRS also released Notice 2022-55, which provides technical guidance on all the cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for the 2023 tax year.
Additional changes for 2023 include:
Here's an excerpt from the Tax law changes, regarding: 401(k) and IRA Limits Increased for 2023
The amount individuals can contribute to their 401(k), 403(b), most 457 and the federal government's Thrift Savings Plan accounts increases to $22,500 for 2023, the IRS has announced. That is an increase of $2,000 from 2022. The IRS also released Notice 2022-55, which provides technical guidance on all the cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for the 2023 tax year.
Additional changes for 2023 include:
- The limit on annual IRA contributions increases to $6,500 from $6,000.
- The catch-up contribution limit for employees aged 50 and older participating in 401(k), 403(b), most 457 and Thrift Savings Plan accounts increases to $7,500 from $6,500.
- The income ranges for determining a taxpayer's eligibility to make deductible contributions to traditional IRAs, contribute to Roth IRAs and claim the Saver's Credit increases.
- The income phase-out range for taxpayers making contributions to Roth IRAs increases.
- The phase-out ranges for taxpayers who are covered by a retirement plan at work but still contribute to a traditional IRA increases.
For all the details, you could read this page below, or Just Call US for a simplified view of the changes to expect!
www.kiplinger.com/taxes/tax-law/603037/tax-changes-and-key-amounts
www.kiplinger.com/taxes/tax-law/603037/tax-changes-and-key-amounts