New Tax Laws For 2024 Explained! VERY DETAILED AND EASY TO FOLLOW….
You can follow the links here to download the spreadsheet:
Video Outline and Time Stamps so you can quickly jump to any topic:
• Critical updates for 2024 – 4:26
• The 2024 Federal Income Tax Bracket Rates – 4:26
• 2024 capital gain rates for stocks and dividends -5:17
• Changes to the 2024 standard deduction – 6:10
• Child tax credit rules for 2024- 7:55
•
• 2024 Education Credits and Student loan interest- 11:11
• 2024 401(K) Contribution Limits IRA Contribution Limits- 12:20
• 2024 Social Security Cost of living adjustment 13:52
• 2024 Gift tax exclusion 14:10
• Health Savings – 16:04
• 2024 Standard Mileage rate: 17:52
• 2024 QBI (199A Deduction) 18:10
Other related videos:
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Marginal tax rate vs effect tax rate: …(read more)
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2024 Income Tax Changes For Individuals
As we approach the year 2024, there are significant changes to the income tax laws that will affect individuals. These changes are part of the ongoing efforts to reform the tax system and ensure fairness and transparency for taxpayers. It is important for individuals to be aware of these changes so that they can properly plan and prepare for the upcoming tax season.
One of the key changes that will come into effect in 2024 is the adjustment of tax brackets and rates. The tax brackets determine how much of your income is subject to a particular tax rate. In 2024, there will be adjustments to the income thresholds for each tax bracket, as well as changes to the tax rates themselves. This means that individuals may find themselves in a different tax bracket than before, which will affect how much tax they owe.
Another change that individuals should be aware of is the increase in standard deduction. The standard deduction is a fixed dollar amount that reduces the amount of income that is subject to tax. In 2024, the standard deduction will be increased, providing individuals with a larger deduction and reducing their taxable income.
Additionally, there will be changes to various tax credits and deductions that individuals can claim. Some credits and deductions may be expanded, while others may be eliminated or phased out. It is important for individuals to stay informed about these changes, as they can have a significant impact on their tax liability.
Furthermore, the rules for retirement accounts, such as IRAs and 401(k)s, may also see some changes in 2024. There could be adjustments to contribution limits, as well as changes to the rules governing distributions and withdrawals from these accounts. Individuals who contribute to retirement accounts should pay attention to these changes to ensure they are maximizing their tax-advantaged savings.
It is also important for individuals to be aware of any changes to tax filing deadlines and requirements. The IRS may make adjustments to the due dates for tax returns and payments, as well as the documentation and information that is required for filing. Staying informed about these changes will help individuals avoid potential penalties and ensure that they are in compliance with the law.
In conclusion, the year 2024 will bring significant changes to the income tax laws for individuals. These changes will impact tax brackets and rates, standard deductions, credits and deductions, retirement accounts, and filing requirements. It is crucial for individuals to stay informed about these changes and seek professional guidance if needed to ensure they are properly prepared for the upcoming tax season. By understanding and planning for these changes, individuals can effectively manage their tax liability and make the most of the available tax benefits.
Video Outline and Time Stamps so you can quickly jump to any topic:
• Critical updates for 2024 – 4:26
• The 2024 Federal Income Tax Bracket Rates – 4:26
• 2024 capital gain rates for stocks and dividends –5:17
• Changes to the 2024 standard deduction – 6:10
• Child tax credit rules for 2024- 7:55
•
• 2024 Education Credits and Student loan interest- 11:11
• 2024 401(K) Contribution Limits IRA Contribution Limits- 12:20
• 2024 Social Security Cost of living adjustment 13:52
• 2024 Gift tax exclusion 14:10
• Health Savings – 16:04
• 2024 Standard Mileage rate: 17:52
• 2024 QBI (199A Deduction) 18:10
Thank you
Thanks for the clear explanation. Please correct me if I'm wrong but at 12:24, those limits are not for all of 401, 403, and 457 combined. I believe 401 and 457 limits are combined but 403 has its own separate limit. So, e.g., you can have both 457 and 403 and contribute to each up to its max. for a total of $46000 or $61000.
I read the max contribution limit for family was $8300 not $8050
Thank you this is very informative!!
If a bush would repay the trillions he stole, i mean borrowed, im sure that could help usa.
3rd year tax preparer here. I always watch your updates and find them very helpful. Thank you for doing them each year.
Just squeezing money from the people
Can barely count to SIX.
Looks like you left off the single elderly (you posted Elderly and blind).
on 199a deduction it depends if business specified trade of business or non specified trade of business, by STSB eliminated over the upper limit, but by non SSTB will be applied wage and property limitation, for example uber driver is non SSTB and will fully eligible
I'm at 4:30 minute mark. I believe your 35% bracket is incorrect for single/mfs, and mfj (upper bounding values). The head of household is correct.
Wow, it’s already been a year. I remember watching the last one for a quick update as a first year staff
Can you cover inherited IRA?
I heard the IRS changed the MRD taxable distribution AGAIN!
If you were 10 years younger than the deceased person and the deceased was under 70, you could take distributions for the rest of your life. Instead of being forced to take it within 10 years.
Well articulated. Good job.
Hi I am 76 years old and my income is SSI which is $3,2229.00 and get Roth and Veterans which is about $9,500 ,So do I have to file ?
Mike, If I am listed as a co-trustee on my moms Irrovacable trust, does that remove step up in basis. I've asked the lawyer and they stated I'm not an owner but listed on the deed as a co-trustee with my sister.
I look forward to this every year. I love the fact that you summarize this in a spreadsheet format. So appreciate you.
Please show the Updated standard deduction for Seniors over 65 and the blind.
Hello Mike…thanks for your 2024 update which I found interesting. You touched on estate taxes and explained why it would only pertain to the Uber wealthy, but I was hoping to hear about the elimination of the "step-up" provision, according to an H.R. ___ representative. According to her, if I Inherited a house through a trust the basis would be the decedent's cost basis as if she/he were still alive, but if through a will and probate the basis would be the FMValue at the time of the decedent's death. I believe I'm getting the wrong information…can you clarify this for me?