Tag: 2024 tax

Posts Tagged ‘2024 tax’

2024 Tax Filing Will Open on January 29

Posted by admin on January 11, 2024
Last modified: January 9, 2024

In a recent announcement, the IRS has declared that the 2023 tax season will commence on Monday, January 29, 2024. Get ahead of the game and e-file your taxes now with PriorTax. By 2024 tax filing early, you can ensure you’ll be among the first to receive your tax refund.

If you are in need of assistance with your taxes, whether you prefer to tackle them independently, seek support throughout the process, or entrust them entirely to a tax specialist, the team at PriorTax is committed to providing expert guidance at no cost to you. Our dedicated Tax Professional aim to ensure you receive the maximum tax refund possible while offering comprehensive support from beginning to end. Individuals received an average tax refund exceeding $3,000 in the previous fiscal year.

2024 Tax Filing

2024 Tax Filing Deadline is April 15 for Most Taxpayers

On April 15, we celebrate Patriots Day, a great significance for our nation. It is a time when we honor and remember the brave patriots who fought for our freedom and independence.  In order to ensure a smooth and timely tax filing process, the we strongly advise the taxpayers to submit their tax returns as early as possible. Maintaining copies of previous tax returns for a minimum of three years is also important. For most taxpayers, the essential deadline to file their individual federal tax returns, settle any outstanding tax liabilities, or seek an extension is Monday, April 15, 2024.

April 15, 2024, marks the final day for individuals to submit their 2023 tax returns. However, residents of Maine and Massachusetts can breathe a sigh of relief as they have an extended deadline until April 17, 2024. This extension is granted in recognition of the significant holidays of Patriot’s Day and Emancipation Day. Furthermore, taxpayers residing in areas that have been declared as federally recognized disaster zones may be eligible for additional time to file their tax returns.

When tax filing your taxes electronically, e-file and direct deposit are the perfect combination for a speedy tax refund. The IRS estimates that approximately 90% of taxpayers will receive their tax refund within 21 days or less as long as there are no complications with their tax return.

Tax refunds are typically processed and issued by the IRS within 21 days, with EITC refunds becoming available starting February 27. However, the timeline for receiving a refund can be influenced by various factors once the IRS receives a tax return. It is important for taxpayers to refrain from depending on a specific refund date, particularly when it comes to significant expenses or bill payments.

Important 2024 Tax Filing Season Dates

Jan. 12: IRS Tax Filing opens

Jan. 16: Due date for 2023 fourth quarter estimated tax payments.

Jan. 26: Earned Income Tax Credit Awareness Day.

Jan. 29: The filing season starts for individual tax returns.

April 15: Due date of filing a tax return or requesting a tax filing extension.

April 17: Due date for Maine and Massachusetts.

Oct. 15: Due date for extension filers.

Finding your dedicated tax professional is the most effective way to track the status of any potentially delayed returns. In some instances, additional review may be necessary, resulting in a longer wait time.

2024 Tax Changes May Generate Better Tax Refunds

Posted by admin on December 21, 2023
Last modified: December 21, 2023

In the upcoming year of 2024 tax filing, prepare for a pleasant surprise as significant tax modifications are set to take effect. Brace yourself for potential financial gain, as your paycheck has the potential to grow generously if you find yourself in a lower tax bracket.

In a recent declaration, the IRS unveiled various significant modifications to the tax code. These alterations can potentially affect the amount of tax deducted from your earnings, causing potential implications for specific individuals.

In anticipation of the upcoming year, 2024 tax filing promises adjustments to the federal income tax brackets as well as an increase in the standard deduction. This significant modification is a direct response to the persistently soaring inflation that has kept the prices at an elevated level throughout the entirety of the current year.

Every year, the IRS implements modifications to the tax code as a means to accommodate inflation and prevent the occurrence of “tax bracket creep.” This phenomenon has the potential to push individuals into higher tax brackets despite the impact inflation has on their wages.

In the year 2024, it is possible that your chances of moving up to a higher tax bracket due to increased income could be mitigated by incorporating inflation into the tax code. It could result in a drop to a lower tax bracket. If your annual income remains steady from 2023 to 2024, you could see a slight increase in your take-home pay each payday.

How Changes in 2024 Tax Code May Affect Your Tax Refund

If the IRS increases federal income tax brackets, individuals may find themselves in a lower tax bracket compared to the previous year, especially if their income remains unchanged.

In 2023, let’s say you earned $47,000 and found yourself in the 22% tax bracket. However, fast forward to 2024; if your income stays the same at $47,000, you’ll now find yourself in the 12% bracket. This change in tax bracket implies that next year, you’ll be liable for a reduced amount of federal tax and will see a smaller deduction from your paycheck.

In the upcoming year of 2024, if your income surpasses that of 2023, the extent to which your earnings have grown will dictate your position. There exists the possibility that even with the recent alterations, you might still find yourself fitting into a lower tax bracket.

Regardless of the situation, it is crucial to acknowledge that in the current state of lingering inflation, the impact of high prices is being felt in various ways. Thus, even if one transitions into a lower tax bracket and receives a slightly larger paycheck in the upcoming year, inflation has already eroded the value of expenses for basic necessities such as housing, transportation, and groceries.

2024 New Income Tax Brackets

When it comes to calculating the amount of taxes you owe in a specific tax year, your federal income tax bracket plays a significant role. This bracket determines the percentage of your income that will be taxed, excluding any standard or itemized deductions.

2024 tax filing

2024 New Standard Tax Deduction

In the upcoming year of 2024, a notable change has been made to the standard tax deduction for single filers. This adjustment has resulted in an increase of $750 compared to the previous year, bringing the tax deduction to a total of $14,600. Similarly, married individuals who file jointly will also experience a change in their standard deduction for the upcoming tax season.

2024 standard tax deduction

When it comes to tax returns, many individuals opt for the standard deduction, which effectively lowers their taxable income. This is especially true for those who earn wages from a single employer as a W-2 employee, as it often allows them to maximize their tax refund. However, itemizing deductions may be a more suitable approach for self-employed individuals or those with particular deductions in mind.

Other Beneficent 2024 Tax Filing Updated

Starting next year, there will be a range of tax adjustments that have the potential to boost your monthly income. Those who are beneficiaries of Social Security will be pleased to know that a 3.2% cost-of-living adjustment is slated to take place in 2024. Furthermore, due to the fortuitous timing of New Year’s Day falling on a holiday, recipients can anticipate their first augmented SSI payment right around the end of December.

To assist taxpayers in maximizing their deductions and credits, the IRS unveiled many updates and enhancements for the upcoming year of 2024. Among these revisions are:

  • An amplified cap for the Earned Income Tax Credit.
  • Refinements to the gift tax exclusion.
  • An expansion of the foreign earned income exclusion.

PriorTax free Dedicated Tax Professional will keep you up to date and walk you through navigating through 2024 tax filing for your maximum tax refund from start to finish.

2024 Tax Filing

Posted by admin on December 14, 2023
Last modified: December 14, 2023

In anticipation of the upcoming 2024 tax season, it is crucial to proactively prepare for any potential alterations that could affect your tax filing process. Whether you are a seasoned tax filer or venturing into the world of tax filing for the first time, navigating the tax season can be quite daunting.

To ensure a smooth and stress-free experience for the upcoming tax season in 2024, we have curated this indispensable handbook. It will equip you with the necessary information to accurately and efficiently file your tax returns for the year 2023.

2023 Tax Filing Important Dates and Deadlines 

Marking the beginning of the 2024 tax cycle, January 23, 2024, signifies the commencement of the official new tax season.

If the tax deadline is approaching and you cannot file your taxes, it is crucial to take the necessary steps to request an extension. One way to do this is by submitting IRS Form 4868, which is known as the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.

Please be aware that while this affords you extra time for tax filing purposes, it does not grant you an extension for tax payment. Should you be unable to settle your taxes in full by April 15, it is crucial to establish a payment plan with the IRS to prevent any detrimental consequences, including wage garnishment or the imposition of a tax lien.

2024 tax filing

2024 Tax Law Changes and Updates

The upcoming 2023 tax return brings numerous modifications and revisions that might affect your financial situation. Among these alterations, the elevated standard tax deduction is a prominent highlight, as it undergoes regular adjustments to accommodate inflation rates. Individuals filing as single will witness a noteworthy increase of $900, resulting in a new standard deduction of $13,850.

Married individuals filing jointly can take advantage of a higher standard tax deduction for the 2023 tax year. This year, their standard deduction will see a significant increase of $1,800 compared to the previous year, totaling a generous $27,700.

Apart from the rise in the standard deduction, a few other factors could potentially influence your tax situation.

2024 Child Tax Credit

In the upcoming tax year of 2023, the Child Tax Credit will revert to its pre-COVID regulations, just as it did in the previous year of 2022. Consequently, the tax credit will no longer be entirely refundable, only allowing for a refund of up to $1,600.

To be eligible for the full credit, individuals must have a modified adjusted gross income (MAGI) equal to or less than $200,000 ($400,000 or less for those who are married and filing jointly).

2024 Income Tax Credit

In 2024, individuals filing taxes for the 2023 tax year can avail of the Earned Income Tax Credit (EITC), which ranges from $600 to $7,430. The amount eligible for this credit is determined by income level, number of dependents, and tax filing status. If individuals do not have qualifying children, they must be between the ages of 25 and 65 to claim the EITC.

Number of Qualifying Children and Maximum Credit Amount:

  • $600 Max Tax Credit with 0 Children
  • $3,995 Max Tax Credit with 1 Child
  • $6,604 Max Tax Credit with 2 Children
  • $7,430 Max Tax Credit with 3+ Children

2024 Annual Gift Tax

In the upcoming year of 2023, individuals can take advantage of the 2024 annual gift tax deduction, allowing them to gift up to $17,000 ($34,000 if married) without incurring any taxes.

Health Savings Account (HSA) in 2024

In the upcoming tax year of 2023, individuals are granted the opportunity to contribute to their Health Savings Account (HAS) up to a maximum of $3,850. This equates to a $200 increase compared to the previous year. For those who have chosen family coverage, the contribution limit is set at $7,750.

The benefits of HSAs are threefold when it comes to taxes:

  1. Individuals can deduct 100% of their contributions from their tax burden.
  2. Any interest earned within the HSA remains tax-deferred unless it is used for non-medical expenses.
  3. When funds are withdrawn for eligible medical expenses, they are entirely tax-free.

2024 IRA & 410(k) Contributions Tax Deduction 

In the upcoming year of 2023, individuals who contribute to their 401(k) plans will be thrilled to learn that the annual deferral limits have experienced a significant jump, with up to $2,000 to increase from 2022.

The contribution limits for taxpayers aged 50 or above have been revised, allowing them to increase their investments in traditional and safe harbor 401(k) plans. Specifically, individuals in this age group can now contribute an extra $7,500, a notable increase from the previous year’s limit of $6,500.

In the realm of individual retirement accounts, specifically the traditional and Roth IRA, it is important to note the contribution limit for the year 2023. This limit stands at $6,500, although individuals who have reached the age of 50 or older are allowed to contribute up to $7,500. However, it is crucial to be aware of potential adjustments to your contribution amount in the case of a Roth IRA. These adjustments are dependent on your modified adjusted gross income (MAGI)

2024 Student Loan Interest Tax Deduction

With the resumption of student loan payments and the return of accruing interest, there is a potential opportunity to claim a deduction of up to $2,500 on your 2023 tax return. To be eligible for this deduction, individuals must have a MAGI of less than $90,000 (single, qualifying widow(er), or head of household) or $180,000 if they are married and filing jointly.

Step-by-Step Guide to Filing Taxes in 2024

Once you have assembled the essential paperwork, it is crucial to adhere to the comprehensive tax filing guide provided below. Following these step-by-step instructions will ensure a seamless and accurate procedure.

Opt for a tax preparation approach like utilizing tax preparation software or seeking advice from a tax professional. Should you opt for the traditional paper tax return, it is important to remember that the processing time may extend up to six months. E-filing is strongly recommended whenever feasible.

To ensure the accuracy and completeness of your tax return, it is important to input all relevant information into PriorTax. Remember to sign and date your return and attach any necessary tax documents, forms, and schedules if filing by mail. Remember, the deadline to submit your tax return is April 15.

When managing your taxes, don’t hesitate to contact the experienced Tax Professionals at PriorTax. PriorTax understands the importance of affordable tax preparation for individuals and small business owners, offering services tailored to your specific needs. Additionally, we are dedicated to assisting you in resolving any tax debt issues you may face. Take the first step towards financial peace of mind by connecting with your dedicated Tax Professional, free of charge.