The 2024 tax filing season is here, so it’s time to start thinking about tax preparation. To help you navigate the latest tax law updates and plan your financial strategy, we’ve compiled a quick overview of some of the biggest updates.

Federal Tax Bracket Updates

The number of tax brackets hasn’t changed for 2024 (there are still seven), but the income thresholds for each bracket have been slightly increased due to inflation. Here’s a breakdown of the 2024 tax rates and income ranges:

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

Standard Deduction Increases (taxes due 2025)

The standard deduction is a straightforward way to reduce your taxable income. Unlike itemized deductions, you don’t need to track and document individual expenses. The amount you can claim depends on your filing status. Due to inflation, the standard deduction has gotten a little bigger for 2024. Here’s a breakdown:

• Single filers and married couples filing separately: $14,600
• Single heads of household: $21,900
• Married couples filing jointly: $29,200

New 1099-K Reporting Rules

If you receive payments through platforms like PayPal, Venmo, or eBay, be aware of new 1099-K reporting rules. Starting in 2024, you’ll receive a 1099-K for any payment of $5,000 or more — a significant change from 2023 when the threshold was $20,000. This means a lot more people will need to report income from these platforms.

Contribution Increases

The 2024 tax year brings good news for retirement savers and healthcare consumers. Contribution limits for popular retirement plans and tax-advantaged health accounts have increased. These changes offer opportunities to boost your savings and reduce your tax burden.

• 401(k)s: You can now save up to $23,000 in your 401(k) plan. If you’re 50 or older, you can contribute an extra $7,500.
• IRAs: The annual contribution limit for IRAs is now $7,000. If you’re 50 or older, you can contribute an extra $1,000.
• Health Savings Account (HSA): Individuals can now contribute $4,150 and families can contribute $8,300. If you’re 50 or older, you can contribute an extra $1,000.
• Flexible Spending Account (FSA): The dollar limit is now $3,200.

Higher Alternative Minimum Tax (AMT) (taxes filed in 2025)

The Alternative Minimum Tax (AMT) is a separate tax system that ensures high-income taxpayers (those with incomes over $500,000) pay a minimum amount of tax, regardless of deductions. It targets taxpayers who might otherwise use loopholes to avoid taxes.

Here are the new exemption amounts and phase-out thresholds for 2024 (taxes filed in 2025):

• Single Filers: $85,700 (begins to phase out at $609,350).
• Married Filing Jointly: $133,300 (begins to phase out at $1,218,700).

New Capital Gains Tax Threshold

Capital gains taxes apply to profits from selling assets like stocks, bonds, real estate, or collectibles. Here’s a breakdown of the 2024 long-term gain tax rates and brackets:

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

Final Thoughts

These are just some of the key 2024 tax law updates. For a comprehensive overview, visit IRS.gov. Staying informed about tax updates can save you money and prevent surprises. Remember to consider state and local tax laws, as they can vary. For complex tax situations, consulting a tax professional can ensure accurate preparation and maximize your tax benefits.