01/31/2025
Dear Valued Client,
Happy New Year and soon Happy Valentine's Day! We hope this message finds you in good health and high spirits as we welcome another year filled with new opportunities despite the unbelievable challenges around us. We encourage everyone to look at the positive side of our existence and enjoy life as much as we can. "Capture the moment for it will never come again".
The IRS will be ready today to e-file the 2024 tax return and filing deadline is still set on April15, however, IRS gave the Los Angelenos who reside or have business in the affected/disaster areas of wild fire a break , more time to file until October 15, 2025.
At AKRE TAX office, we are excited to continue supporting you with all your tax needs, and we want to take a moment to share some important updates that might affect you in the upcoming tax season.
Consistently, our office hours start from 8:00 in the morning until 7:00 in the evening from Monday till Sunday at 1524 Rock Glen Ave. Glendale CA 91205.
You can send your tax documents in person, via email, snail mail, fax, telephone call or other means of communication. You may call us anytime at 818-645-9550 or 818-640-4689 for any questions or concerns. We have supplemented our tax and financial services with real estate and life & health agency. You can also consult us with real estate purchase or sale and refinance issues, fixed index annuity and index universal life with living benefits.
We cannot thank you enough for your loyalty and friendship. We are happy to glide with you as always in what we call life adventures. We are looking forward to our 2025 reunion hoping for favorable tax consequences and for a good talk and laughter about what happened in 2024.
What's New for 2025?
As always, tax laws can change from year to year, and we want to ensure you are informed of the latest updates. Here are a few key changes for this year affecting your 2024 tax filing:
Standard Deduction Increase: The standard deduction has been raised for both single and married filers, which means more taxpayers may be able to reduce their taxable income without having to itemize deductions. If you haven’t itemized in the past, this might be a good year to check and see if you can benefit from this change! MFJ OR QSS - $29,200 SINGLE OR MFS - $14,600 HOH - $21,900.
Child Tax Credit: The Child Tax Credit remains at a generous level for those who qualify, $2,000 per qualifying child with SS number and $500 for other dependents. There have been some adjustments, so if you have a growing family, it's worth reviewing your eligibility to maximize the credit. The nonrefundable child and dependent care credit is available to taxpayers to work or attend school full time.
Retirement Contributions: For 2024, the contribution limits for retirement accounts such as 401(k)s and IRAs have been increased. This means you can set aside more money for your future, reducing your taxable income while also boosting your savings for retirement. If you have not yet made a contribution for the year, now is a great time to think ahead! IRA - Under 50 - $7,000 and 50 or older $8,000. Simple IRA - Under 50 - $16,500, 50 or older - $19,500. Elective deferral limits on 401K,403(B),457 and SARSEP - Under 50 - $23,000, 50 or older - $30,500. Profit-sharing plan/SEP contribution limit is $69,000.
Foreign earned income exclusion $126,500. Maximum earnings subject to Social Security tax is $168,600. Maximum Social Security tax paid is $10,453.20. Investment Income Limit is $11,600.
Earned Income Tax Credit (EITC): If you qualify for the EITC, there have been some updates to income thresholds and credit amounts. Be sure to check if these changes apply to your situation, as this could mean a larger refund. Eligible low-income taxpayers - Qualifying children - if none $632, One child - $4,213, Two children - $6,960, 3 or more - $7,830.
Section 179 deduction overall limit - $1,220,000 , SUV limit (per vehicle) $30,500. Standard mileage - Business 67cents, Charity 14 cents, Medical/Moving 21cents.
American opportunity max credit per student is $2,500 and Lifetime learning credit max per return is $2,000.
Education credit phase-out begins at AGI of : MFJ $160,000. Single, HOH, or QSS $80,000. MFS - not allowed. Student loan interest deduction limit is $2,500.
AMT Exemption - MFJ or QSS - $133,300, Single or HOH -$85,700, MFS - $66,650.
Estate and gift tax exclusion - $13,610,000. Gift tax annual exclusion - $18,000.
Social Security Maximum Earnings and still receive full benefits - Under full retirement age (FRA) at year-end, $22,320, Year FRA reached $59,520 ( months up to FRA only), Month FRA reached and later, No Limit .
Depreciation Limits (first year) - Luxury autos, light trucks, and vans - $12,400 plus $8,000 if special (bonus) depreciation is claimed.
Corporate Tax Rate - Flat 21% for 2024, also applies to personal service corporations.
Beneficial Ownership Reporting (BOI) remains voluntary for time being due to the issued nationwide injunction against the BOI reporting requirements.
IRS on line account has been enhanced for taxpayers to view tax owed, payment history and schedule payments, request tax transcripts, view/apply for payment plan, see digital copies of some IRS notices, view key data from their most recently filed tax return including adjusted gross income and validate bank accounts and save multiple accounts, eliminating the need to re-enter bank account information every time they make a payment.
Refund timing - IRS issues most refunds in less than 21 days but caution on possible refund delays due to some factors like missing information, errors or suspected identity theft or fraud. EIC refund cannot be issued before mid-February , as required by law IRS to hold the entire refund and will be available by Feb 27.
Tax Withholding Estimator - Suggested to use for estimated or additional tax payments for non-wage income earners to avoid an unexpected tax bill when filing . Last quarterly payment for 2024 is due on January 15, 2025.
1099-K reporting - for 2024 the threshold is $5,000 and IRS will not assert penalties for third-party settlement organizations (TPSOs) like (Venmo, Amazon, etc.) if they failed to withhold and pay back-up withholding tax for 2024.
Clean vehicle credit - Purchase of new 4-wheeled plug-in electric vehicles manufactured primarily for use on public streets, roads and highways that meet certain requirements with modified AGI limitations up to $7,500 credit.
Previously-owned Clean Vehicle Credit - Purchased used vehicle - The vehicle's original use must have started with a person other than the taxpayer and the vehicle must also generally meet the requirements for the clean vehicle credit for new vehicles with modified AGI limitations - Lesser of $4,000 or 30% of the sales price credit.
Energy efficient Home Improvement - Insulation, doors, windows, and heat pumps or have a home energy audit performed - 30% of qualified expenses up to $3,200 per year credit depending on the type.
Residential Clean Energy - 30% of cost - Solar electric , solar water heating, small wind energy ,geothermal heat pump, fuel cell and battery storage technology installed on taxpayer's residences.
State-Specific Changes: Depending on where you live, there may be additional state-specific tax changes to be aware of. We are happy to review these with you in person or over the phone, so feel free to reach out!
We're Here to Help!
Navigating tax laws can be tricky, but we're here to make the process as simple as possible for you. Whether you need help filing your taxes, understanding new credits, or planning for the future, our team is ready and eager to assist.
Please don’t hesitate to contact us with any questions or to schedule an appointment. We truly value your continued trust in us, and we look forward to supporting you in the year ahead.
Wishing you a prosperous and joyful 2025!
