01/13/2025
As the official tax season opening date for individual Form 1040 tax returns is now announced here are some reminders about 2024 deductions, credits and tax rates.
The standard deduction for married couples filing jointly rises to $29,200; to $14,600 for single taxpayers and married individuals filing separately, and to $21,900 for heads of households.
The additional standard deduction amounts for taxpayers who are 65 and older or blind are $1,950 for single or head of household and $1,550 for married taxpayers or qualifying surviving spouse.
The Child Tax Credit (CTC) for dependents under 17 at the end of the tax year, did not change from 2023 and is still $2,000 per qualifying child, if your modified adjusted gross income is $400,000 or below (married filing jointly) or $200,000 or below (all other filers). The refundable portion, also known as the Additional Child Tax Credit (ACTC), is increased by $100 to $1,700.
The maximum Earned Income Tax Credit (EITC) amount is $7,830 for qualifying taxpayers who have three or more qualifying children, up from $7,430 in 2023.
The top tax rate remains 37% for individual single taxpayers with incomes greater than $609351 ($731,200 for married couples filing jointly). The other rates are:
35% for incomes over $243,726 ($487,451 for married couples filing jointly);
32% for incomes over $191,951 ($383,901 for married couples filing jointly);
24% for incomes over $100,526 ($201,051 for married couples filing jointly);
22% for incomes over $47,151 ($$94,301 for married couples filing jointly);
12% for incomes over $11,601 ($23,201 for married couples filing jointly).
The lowest rate is 10% for incomes of single individuals with incomes of $11,600 or less ($23,200 for married couples filing jointly).
If you have any questions, or would like to schedule an appointment, feel free to give us a call at 508-399-8270.
Have a great week.
Sources: IRS.gov, nerdwallet.com