2024 Tax Law Changes
Standard Deduction for Schedule A - The personal deduction has risen: Married filing jointly (MFJ) - $27,700; Single - $20,800 and Head of Household - $20,800. An additional $1,850 will be added for the elderly and blind.
IRA Contribution Amounts for the 2023 tax year is $6,500 single and $13,000 MFJ. For the tax year 2024, the contribution amount is $7,000 single and $14,000 MFJ. The Catch-Up contribution for taxpayers over 50yrs is $1,000.
IRA Distribution mandatory age for Required Minimum Distribution (RMD) has increased from age 72 to 73 for those that turn 72 after 2022.(Taxpayers born in 1951 thru 1958). The RMD age is 75 yrs. for those who turn 74 after 2032 (Taxpayers born after 1958).
IRA to Charity Taxpayers may exclude from taxation up to $100,000 annually in "qualified charitable distributions" from IRA to a Non-Profit charity.
Health Saving Account limitation for 2024 is $4,150 single and $8,300 MFJ.
Annual Gift Exclusion for 2024 is $17,000.
Standard Mileage Rate for business mileage is $.655 per mile, charitable mileage is $.14 per mile and medical mileage is $.22 per mile.
Solar Energy Credit is still in effect until 2032 and the taxpayer can claim 30 percent credit.
Clean Air Act Electric vehicle credit is still in effect for 30% up to $7,500. Check with the dealer if the car is still eligible for the credit and has not passed it's sale limit.
FICA Wage limitation has increased annually for employees from $160,200 in 2023 to $168,000 in 2024.
Short Term Rentals have a new property tax starting January 1, 2024 on the furnishings in the rental.
SDI Contribution In 2024, California State Disability (SDI) has removed a limit on California employee's wages making all wages taxable.
LLC Owners have a new filing requirement beginning January 1, 2024.