2024 Tax Season Guide
Major Tax Updates
Each year introduces new tax law updates that keep American taxpayers on alert, and 2024 is no exception. From basic inflation adjustments to changes in Form 1099-K reporting rules, here’s what you need to know about the tax changes for 2024 before filing your income tax return.
Keep in mind there is a lot of talk around some major changes to key aspects of the tax code related to the incoming administration. We will do everything we can to keep our clients updated on any new changes that may affect 2024 filers. At this moment, the information below is the most up to date that we have.
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2024 Tax Rate Updates:
The seven individual income tax rates remain in place, ranging from 10% to 37%. These rates apply based on the following income thresholds for each tax filing status:
| Tax rate | Single filer | Married filing jointly | Married filing separately | Head of household |
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $11,600 | $0 to $16,550 |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 | $11,601 to $47,150 | $16,551 to $63,100 |
| 22% | $47,151 to $100,525 | $94,301 to $201,050 | $47,151 to $100,525 | $63,101 to $100,500 |
| 24% | $100,526 to $191,950 | $201,051 to $383,900 | $100,526 to $191,950 | $100,501 to $191,950 |
| 32% | $191,951 to $243,725 | $383,901 to $487,450 | $191,951 to $243,725 | $191,951 to $243,700 |
| 35% | $243,726 to $609,350 | $487,451 to $731,200 | $243,726 to $365,600 | $243,701 to $609,350 |
| 37% | $609,351 or more | $731,201 or more | $365,601 or more | $609,350 or more |
2024 Standard Deduction Rates:
Every year the IRS adjusts these rates to account for the rising cost of living. The amount available to you depends on your filing status.
| Tax filing status | Standard deduction 2024 | Standard deduction 2023 |
| Single | $14,600 | $13,850 |
| Head of Household | $21,900 | $20,800 |
| Married filing jointly and surviving spouse | $29,200 | $27,700 |
| Married filing separately | $14,600 | $13,850 |
Capital Gains Tax Rates
Profits from selling assets such as stocks, real estate, and cryptocurrency are subject to capital gains tax rates. Short-term gains (from assets held for one year or less) are taxed as ordinary income. Long-term gains (from assets held longer than a year) are taxed at a maximum rate of 20%. The 2024 long-term capital gains tax rates and brackets are as follows:
| Tax rate | Single | Married filing jointly | Married filing separately | Head of household |
| 0% | $0 to $47,025 | $0 to $94,050 | $0 to $47,025 | $0 to $63,000 |
| 15% | $47,026 to $518,900 | $94,051 to $583,750 | $47,026 to $291,850 | $63,001 to $551,350 |
| 20% | $518,901 or more | $583,751 or more | $291,851 or more | $551,351 or more |
Other 2024 Tax Changes
- Social Security Tax Limit: For 2024, the maximum earnings subject to the Social Security payroll tax have increased to $168,600, up from $160,200 in 2023. This means the maximum Social Security tax that can be withheld from your paycheck in 2024 will be $10,453.20.
- Alternative Minimum Tax (AMT): The AMT exemption for 2024 rises to $85,700, up from $81,300 in 2023, and begins phasing out at $609,350. For married couples filing jointly, the exemption increases to $133,300 (up from $126,500) and starts phasing out at $1,218,700.
- Bonus Depreciation: In 2024, businesses can deduct 60% of first-year bonus depreciation, down from 80% in 2023.
- Fringe Benefits: The monthly limit for tax-free qualified transportation and parking benefits has increased to $315, up from $300 in 2023.
- Gift Tax Exclusions: The annual gift tax exclusion has increased to $18,000 for 2024, up from $17,000 in 2023. You can gift up to this amount without needing to file a gift tax return. The lifetime gift tax exclusion also rises to $13.61 million, up from $12.92 million.
- Qualified Adoption Expenses: The maximum credit for adoption expenses has increased to $16,810, up from $15,950 in 2023.
- Foreign Earned Income Exclusion: For 2024, the foreign earned income exclusion (FEIE) for qualifying expats increases to $126,500, up from $120,000 in 2023.
To see a complete list of changes, visit the official IRS announcement of 2024 inflation adjustments at irs.gov.
What Hasn’t Changed from Last Year?
While tax laws may change from year to year, some things remain the same. Here are a few elements from the 2023 tax code that are unchanged for 2024:
- The Child Tax Credit remains at up to $2,000 per qualifying child, just as it was in 2023.
- There is still no limit on itemized deductions.
- The personal exemption remains at 0, due to the Tax Cuts and Jobs Act.
- The Modified Adjusted Gross Income (MAGI) threshold for the Lifetime Learning Credit (LLC) phase-out has not been adjusted for inflation. The LLC begins phasing out when MAGI exceeds $80,000 ($160,000 for joint filers).