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2024 Tax Changes

2024 Tax Changes

January 31, 2024

Happy 2024! We know that our tax code changes as much as the weather and I want to share some of the highlights for this year.

The standard deduction for federal filings is now $14,600 ($750 increase) for single filers and $29,200 ($1,500 increase) for married filing jointly. This high bar for joint filers eliminates many itemized filings that include mortgage deductions, charitable contributions, and local and property taxes. You want to consider this aspect if you wish to take a deduction for a charitable contribution. Single filers over 65 years old receive an additional $1,950 standard deduction and joint filers and qualified widow(ers) add another $1,550.

Retirement plan participants in a 401(k), 403(b), or Thrift Savings Plan can increase their max annual contribution by $500 to $23,000 in 2024. Individuals age 50 and older catchup contribution remains $7,500. IRA and Roth IRA contributions increase $500 to $7,000 with an age 50 and older catchup of $1,000. Be sure to consult your accountant to determine if you are eligible for traditional and Roth IRA contributions each year.

Both traditional and Roth SIMPLE IRA contributions also increase $500 to $16,000 for participants with a $3,500 over-50 catchup. 

The annual gift exclusion amount increases $1,000 to $18,000 per donor per beneficiary. This includes 529 college savings plans as well.

Contact me at 513-254-7319 if you wish to maximize these new laws and benefits.