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What's New For 2024

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The standard deduction increased

 

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.

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Itemized deductions remain mostly the same:

 

State and local taxes: The deduction for state and local income taxes, property taxes, and real estate taxes is capped at $10,000.
Mortgage interest deduction: The mortgage interest deduction is limited to $750,000 of indebtedness. But people who had $1,000,000 of home mortgage debt before December 16, 2017, will still be able to deduct the interest on that loan.
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IRA and 401(k) limits

The annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans, and the federal government's Thrift Savings Plan is increased to $23,500, up from $23,000. The limit on annual contributions to an IRA remains $7,000.

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The Child Tax Credit:
The maximum tax credit per qualifying child is $2,000 for children under 17. For the refundable portion of the credit (or the additional child tax credit), you may receive up to $1,700 per qualifying child.
 
Earned income tax credit

Here’s a brief overview of the value of the EIC, based on qualifying children:

  • No qualifying children: $632

  • 1 qualifying child: $4,213

  • 2 qualifying children: $6,960

  • 3 or more qualifying children: $7,830

To determine the actual credit amount, head to an article that can help you determine your EIC amount: Earned Income Credit.

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 2024 Standard Deduction

Filing StatusDeduction Amount

S

le$14,600

Married Filing Jointly$29,200

Head of Household$21,900

Additional Amount for Married Seniors$1,550

Additional Amount for Unmarried Seniors$1,950

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Health Savings Accounts For 2024,

The annual contribution limits on deductions for HSAs for individuals with self-only coverage is $4,150 (increase of $300) and $8,300 for family coverage (increase of $550). There is an additional contribution amount of $1,000 for taxpayers who are age 55 or older.

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Don't get caught off guard

If you're age 73 or older, make sure you've taken your required minimum distribution (RMD) from your retirement accounts before the end of the year or else you face a 25% penalty on any undistributed funds (unless it's your first RMD, in which case you can wait until April 1, 2024).

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