2024 Tax Year Changes
For the tax year 2024, there are few changes in the tax law. The law will change in tax year 2025 with the election of a new president. For this year, the changes in law are as follows:
The Standard Deduction increased
Married Filing Joint $27,700
Head of Household $20,800
Single $13,850
Married Filing Single $13,850
The Standard Mileage Rate
Auto Mileage $.67
Medical Mileage $.21
Charity Mileage $.14
Moving Mileage $.21
The maximum Traditional and Roth IRA Contribution is $7,000 with a catch-up contribution for $1,000.
The RMD (Required Minimum Distribution) age is now 73 yrs. The RMD age will increase to 75 yrs for taxpayers born after 1959.
The Annual Gift Tax Exclusion for 2024 is $18,000 and for 2025 $19,000.
The Death Tax Exclusion is $13,610,000 for the tax year, 2024 and $13,990,000 for 2025. After that, the exclusion was supposed to decrease. With the new president, we will have to wait for the new laws to be signed.
The BOI (Business Ownership Information) reporting is on hold and pending court litigation. There will be a new federal registration for certain entities including the LLC (Limited Liability Co) or LLP.