What is the new tax law for 2024?
Asked by: Dr. Stan Feest PhD | Last update: September 25, 2025Score: 4.8/5 (43 votes)
After an inflation adjustment, the 2024 standard deduction increases to $14,600 for single filers and married couples filing separately and to $21,900 for single heads of household, who are generally unmarried with one or more dependents. For married couples filing jointly, the standard deduction rises to $29,200.
What are the new tax changes for 2024?
For tax year 2024, the standard deduction for married couples filing jointly rises to $29,200, an increase of $1,500 from 2023. For single taxpayers, the standard deduction rose to $14,600, a $750 increase from the previous year.
What itemized deductions are allowed in 2024?
If you itemize, you can deduct a part of your medical and dental expenses, and amounts you paid for certain taxes, interest, contributions, and other expenses. You can also deduct certain casualty and theft losses.
Why am I getting less back in taxes this year, 2024?
Reasons to get a smaller tax refund for 2024
Salary increase: If you got a salary increase last year but neglected to increase your tax withholding, this could lead to a smaller tax refund when you file.
How to get a $10,000 tax refund?
Q. Who is eligible for the $10,000 IRS tax refund in California? A. Eligible individuals must qualify for both the Earned Income Tax Credit (EITC) and the California Earned Income Tax Credit (CalEITC).
Overview of 2024 Tax Law Law Changes | TaxSlayer Pro
What is the standard deduction for 2024?
Standard deduction 2024
The standard deduction for 2024 (tax returns filed in 2025) is $14,600 for single filers and married people filing separately, $21,900 for heads of household, and $29,200 for joint filers and surviving spouses.
What tax credits are available for 2024?
- Child Tax Credit (CTC). ...
- Earned Income Tax Credit (EITC). ...
- American Opportunity Tax Credit (AOTC). ...
- Student Loan Interest Deduction. ...
- IRA and 401(k) Deductions.
Who is exempt from federal income tax?
Who Does Not Have to Pay Taxes? You generally don't have to pay taxes if your income is less than the standard deduction or the total of your itemized deductions, if you have a certain number of dependents, if you work abroad and are below the required thresholds, or if you're a qualifying non-profit organization.
How much of Social Security is taxable in 2024?
To get the most out of your benefit you need to plan carefully, however, since you could owe income taxes on as much as 85% of your Social Security. $45,864: Maximum Social Security benefit for someone retiring at full retirement age in 2024. 85%: Maximum portion of Social Security benefits subject to income taxes.
How do I reduce my taxable income?
- Plan throughout the year for taxes.
- Contribute to your retirement accounts.
- Contribute to your HSA.
- If you're older than 70.5 years, consider a QCD.
- If you're itemizing, maximize deductions.
- Look for opportunities to leverage available tax credits.
- Consider tax-loss harvesting.
Is it better to file jointly or separately?
Overall, couples often get fewer benefits and might pay more in taxes when they file separately rather than jointly. In addition, you'll have double the paperwork filing two returns.
What are the new IRS rules for 2024?
- Tax bracket thresholds increased.
- Standard deduction increased.
- Contribution limits for retirement accounts increased.
- 1099-K reporting threshold dropped to $5,000.
- The EITC and Adoption Credit were updated.
- The refundable portion of the Child Tax Credit increased.
What is the new standard deduction for seniors over 65?
For single filers and heads of households age 65 and over, the additional standard deduction will increase slightly — from $1,950 in 2024 (returns you'll file soon in early 2025) to $2,000 in 2025 (returns you'll file in early 2026).
What is the Earned Income Tax Credit for 2024?
You may be eligible for a California Earned Income Tax Credit (CalEITC) up to $3,644 for tax year 2024 as a working family or individual earning up to $30,950 per year. You must claim the credit on the 2024 FTB 3514 form, California Earned Income Tax Credit, or if you e-file follow your software's instructions.
How much is a dependent worth on taxes in 2024?
In 2024, exemption deductions are replaced by: an increased Standard Deduction. a larger Child Tax Credit (worth up to $2,000 per qualifying child) a bigger Additional Child Tax Credit (up to $1,700 per qualifying child)
What disqualifies you from earned income credit?
In general, disqualifying income is investment income such as taxable and tax-exempt interest, dividends, child's interest and dividend income reported on the return, child's tax-exempt interest reported on Form 8814, line 1b, net rental and royalty income, net capital gain income, other portfolio income, and net ...
Will tax returns be better in 2024?
Larger Standard Deduction
The IRS adjusts standard deductions each year for inflation. For 2024, the standard deductions increased roughly 5.4% over 2023's standard deductions.
What is the standard deduction for 2024 taxes?
In 2024, the standard deduction is $14,600 for single filers and married persons filing separately, $21,900 for a head of household, and $29,200 for a married couple filing jointly and surviving spouses. Taxpayers who are 65 or older and/or blind are eligible for an additional standard deduction.
How to increase tax refund?
- Consider your filing status. Believe it or not, your filing status can significantly impact your tax liability. ...
- Explore tax credits. Tax credits are a valuable source of tax savings. ...
- 3. Make use of tax deductions. ...
- Take year-end tax moves.
What can be written off on taxes?
- Alimony payments.
- Business use of your car.
- Business use of your home.
- Money you put in an IRA.
- Money you put in health savings accounts.
- Penalties on early withdrawals from savings.
- Student loan interest.
- Teacher expenses.
What are the tax changes for 2024?
After an inflation adjustment, the 2024 standard deduction increases to $14,600 for single filers and married couples filing separately and to $21,900 for single heads of household, who are generally unmarried with one or more dependents. For married couples filing jointly, the standard deduction rises to $29,200.
How much of Social Security is taxable?
Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits. More than $34,000, up to 85% of your benefits may be taxable.
How can I lower my taxable income?
- Take advantage of tax credits. ...
- Save for retirement. ...
- Contribute to your HSA. ...
- Setup a college savings fund for your kids. ...
- Make charitable contributions.