While we are all getting ready for the Holiday season, it is also time to uncover the new tax provisions for 2024!

Tax Rates for 2024

35% for incomes over $243,725 ($487,450 for married couples filing jointly)
32% for incomes over $191,950 ($383,900 for married couples filing jointly)
24% for incomes over $100,525 ($201,050 for married couples filing jointly)
22% for incomes over $47,150 ($94,300 for married couples filing jointly)
12% for incomes over $11,600 ($23,200 for married couples filing jointly)

Standard Deduction

The standard deduction for married couples filing jointly for tax year 2024 rises to $29,200. For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024; and for heads of households, the standard deduction will be $21,900 for tax year 2024.

Capital Gain Tax Rates

The tax rate on most net capital gain is no higher than 15% for most individuals. Some or all net capital gain may be taxed at 0% if your taxable income is less than or equal to $47,025 for single and married filing separately, $94,050 for married filing jointly or qualifying surviving spouse or $63,000 for head of household.

A capital gain rate of 15% applies if your taxable income is more than $47,025 but less than or equal to $518,900 for single; more than $94,050 but less than or equal to $583,750 for married filing jointly or qualifying surviving spouse; more than $63,000 but less than or equal to $551,350 for head of household or more than $47,025 but less than or equal to $291,850 for married filing separately.

However, a net capital gain tax rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15%capital gain rate.

Estate Tax and Lifetime Exclusion on Gift Tax

Estates of decedents who die during 2024 have a basic exclusion amount of $13,610,000 (including Lifetime Exclusion for Gift Tax); the annual exclusion for gifts increases to $18,000 for calendar year 2024.

Foreign Earned Income Exclusion

For taxable years beginning in 2024, the foreign earned income exclusion amount is $126,500.

Notice of Large Gifts Received from Foreign Persons

For taxable years beginning in 2024, authorities require recipients of gifts from certain foreign persons to report these gifts if the aggregate value of gifts received in the taxable year exceeds $19,570.

Failure to File Tax Return.

In the case of any return required to be filed in 2024, the amount of the addition to tax for failure to file an income tax return within 60 days of the due date of such return (determined with regard to any extensions of time for filing) will not be less than the lesser of $510 (previously $435) or 100 percent of the amount required to be shown as tax on such return.

The following points will assist you when selecting a tax return preparer:

• Be wary of tax return preparers who claim they can obtain larger refunds than others can.
• Avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of your refund into their financial accounts.
• Ensure you use a preparer with a PTIN. Paid tax return preparers must have a PTIN to prepare all or substantially all of a tax return.
• Use a reputable tax professional who enters his or her PTIN on the tax return, signs the tax return, and provides you a copy of the return (as required).
• Consider whether the individual or firm will be around for months or years after filing the return to answer questions about the preparation of the tax return.
• Never sign a blank tax form.
• Good preparers will ask to see your records and receipts. They'll also ask questions to figure things like the total income, tax deductions and credits.
• Check the preparer’s history. Taxpayers can ask the local Better Business Bureau about the preparer.
• Check the person's credentials. Only attorneys, CPAs, and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collections, and appeals. Other tax return preparers who participate in the IRS Annual Filing Season Program have limited practice rights to represent taxpayers for audits of returns they prepared and signed. See Annual Filing Season Program for more information.