2024 Tax Season: What to Expect and How to Prepare
It's tax season again! With the April 15 deadline approaching, now is the time to start gathering your tax documents and preparing your 2023 tax return.
The 2024 tax season looks to be relatively straightforward compared to recent years. The tax code remained mostly unchanged from 2023, so you can use your 2022 tax return as a guide for estimating your 2023 taxes.
However, here are a few key things to keep in mind for the 2024 tax season:
Standard deduction amounts have increased slightly to $13,850 for single filers and $27,700 for married couples filing jointly.
The annual gift tax exclusion is now $17,000, up from $16,000 last year.
IRA contribution limits remain the same ($6,500 limit for traditional and Roth IRAs, plus a $1,000 catch-up contribution for those 50 and older).
The 2023 tax brackets and rates are unchanged from 2022.
Expanded electric vehicle tax credits are still in effect for qualifying new EV purchases.
The federal gas tax holiday enacted in 2022 has now expired, so gas taxes are back to pre-holiday rates.
Even with minimal tax code changes, it always pays to look for potential deductions you may have missed in prior years. Consulting with a trusted tax advisor can help uncover ways to reduce your tax liability.
The best way to avoid a stressful tax season is to start collecting documents early and file as soon as you have all the required paperwork. Let me know if you need any help gathering information for your 2023 taxes!
Let’s make Tax Season 2024 a chapter of triumph for your business!
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