Holidays can bring tax season thoughts. This article answers 13 common tax season questions about filing dates, income brackets, and deductions.
What You Need to Know Before Filing in 2024
1. 2024 tax deadline: Monday, April 15.
2: Tax season starts in late January. As of January 23, 2022 tax returns were accepted by the IRS.
3. Early File: The IRS has not set a late January 2023 tax filing date.
4. 2023 income tax brackets are 7% higher. Brackets rise in 2024. Filers have 10%–37% brackets.
5. Individual Standard Deduction: The 2023 standard deduction jumped 7% to $13,850 and $27,700 for married couples filing jointly.
6. Over-65s get an additional deduction. Married taxpayers pay $1,500 in 2023, while singles pay $1,850.
7. Itemised deductions usually repeat. Deductible state and local taxes up to $10,000 and mortgage interest for the first $750,000 of debt.
READ ALSO: Nationwide ‘pig butchering’ scam bilked crypto victims out of $80 million, feds say
Key Updates on Contributions, Credits, and Filing Status
8. IRA/401(k) limitations: 2023 and 2024 new 401(k) contribution limitations were $22,500 and $23,000. Limited non-employer-sponsored IRAs are $6,500, rising to $7,000 in 2024.
9. HSA Contribution Limit: Private and family HSA contributions were $3,850 and $7,750 in 2023 and $4,150 and $8,300 in 2024.
10. Child Tax Credits: Up to $2,000 per qualifying dependant under 17 in 2023, diminishing for higher incomes.
11. Status: File as single or head of household to adjust standard deduction and tax rates.
12. H&R Block, NerdWallet, AARP, and TurboTax predict refunds.
13. Refunds typically take 21 days. May take longer for paper returns.
These key elements might help you file taxes and comply with the latest rules as tax season approaches.
READ ALSO: Tax season can be terrifying. Here’s everything to know before filing your taxes in 2024
Leave a Reply