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TAX NEWS UPDATE
2024 TAX YEAR
Personal Exemption:
·
Individuals: $0
·
Estates: $600
·
Trusts: $300 if must distribute all income currently; $100
for all other trusts
Standard Deduction:
·
Single: $14,600
·
Married filing jointly: $29,200
·
Married filing separately: $14,600
·
Head
of Household $21,900
Itemized Deductions:
·
Taxes Limited to $10,000
·
Misc. Itemized deductions suspended for 2018-2025
Standard Mileage
Rates For Business Use:
·
Business
67 cents/mile
·
Medical
21 cents/mile
·
Charitable
14 cents/mile
Self Employment:
·
Tax
rate: 15.3%
·
Wage
base: $168,600 of self-employment income for OASDI tax; no
ceiling on Medicare tax
Selected Tax
Credits:
·
Child Tax Credit
$2,000
·
Other
Dependent Credit $ 500
·
Small Business Health Insurance: 50% of amount of
non-elective contributions an eligible small business makes
on behalf of its employees for premiums for health insurance
(35% credit against payroll tax for tax-exempt entities).
Available for two consecutive tax years. Phases out
for employers with between 10 and 25 full-time-equivalent
employees and average annual wages of between $32,400 and
$64,800.
Section 179 and
Bonus Depreciation:
·
Section 179 maximum expense deduction: $1,220,000, reduced by
cost of property placed in service during the year above $3,050,000.
·
Section 168 (k) bonus depreciation: 60% for qualifying
property.
Gift and Estate:
·
Per-
donee annual gift tax exclusion: $18,000
·
Gift/estate tax exclusion: $13,610,000 million/PP; estate of spouse
dying after 2010 may pass unused portion of exclusion to
surviving spouse.
Long-Term Capital Gain Taxes
·
0%,
15%, or 20% Depending on Filing status and taxable income
Level
Retirement Plan Limits
·
Maximum 401(k) plan
elective deferral: $23,000 (plus $7,500 catch-up for
age 50+)
·
Defined benefit plan maximum benefit: $275,000
·
Defined contribution plan contribution limit: $69,000 or
100% of compensation, whichever is less
·
IRA contribution limit: $7,000 (plus $1,000 catch-up for age
50+)
·
IRA deduction phase-out for active participants in a
workplace retirement plan: MAGI from $123,000 to
$143,000 (married filing jointly); $77,000 to $87,000
(single taxpayers and heads of household); $0 to $10,000
(married filing separately); $230,000 to $240,000
(individual who is not active participant in a workplace
retirement plan whose spouse is an active participant in a
workplace retirement plan).
·
Roth IRA contribution limit: $7,000 (plus $1,000 catch-up
for age 50+)
·
Roth IRA contribution limit phase-out (MAGI): $230,000 to
$240,000 (married filing jointly); $146,000 to $161,000
(single and heads of household); $0 to $10,000 (married
filing separately).
·
SEP minimum required compensation: $750; compensation limit
for determining maximum allowable contributions by employer:
$345,000
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