NEWS & UPDATES IN THE ACCOUNTING WORLD
Peruse our News section below filled with helpful tips regarding your financing, company updates and industry resources. Doing our job well doesn’t end at handling accounts and managing finances - it extends past the office and into the trends, changes and news in the finance industry. We’re especially proud of staying up to date on new ways to help our clients manage their money, and we will always share thoughts and updates with visitor customers to ensure they’re in the loop too.
Child Tax Credit:
Child Tax Credit is staying the same, at $2000 per child 17 and under.
Earned Income Credit for one child is $4213, for two children, it is $6960, and for two or more, it’s $7,830.
Child-tax-credit eligibilities are the following:
1. The child must be a U.S. citizen, national or resident alien
2. Must have a Social Security number.
3. Must be claimed as dependent on your 2024 tax return.
4. Must be related to you.
5. Must live with you for at least six months during the year.
Who Must File a 2024 Tax Return?
Single: Must file if gross income is at least $14600.
Married filing Jointly: If gross income is at least $29200.
Head of Household: If the gross income is at least $21900.
For Married filing Separately: If gross income must be $14600.
What can be itemized?
If you qualify for itemized as opposed to standard deduction you could claim the following:
Medical Deductions:
Medical expenses if more than 7.5 percent of your AGI are deductible.
You could claim medical expenses paid by the spouse or any other dependent claimed on the tax return.
Mortgage interest:
Mortgage interest is deductible to indebtedness of $750,000. Home Equity Interest is deductible if debt is for residence acquisition, construction, or substantial improvement.
Charitable contributions:
Any charitable contributions to the following organization are deductible.
Synagogues, temples, mosques, nonprofit schools, hospitals, public parks, recreation facilities, public charities such as Salvation Army, Red Cross, Care, Goodwill industries, United Way, War veterans’ groups.
Gambling Losses:
Gambling losses can be claimed up to the amount of gambling winnings.
Investment Interest is deductible.
Standard Deduction:
Married filing Jointly: $29200.
Married filing Separately: $14600.
Head of Household: $21900.
Single: $14600.
Standard Mileage Rates:
Business 67 cents a mile for tax year 2024.
Medical/Moving 21 cents a mile for tax year 2024.
Charitable 14 cents a mile for tax year 2024.
Simple IRA Plan:
If over age 50 you can contribute up to $19500.
If under age 50 you can contribute up to $16000.
401(k),403(b), and 457 Plans
If over age 50 you can contribute up to $30500.
If under age 50 you can contribute up to $23000.
The tax Brackets:
The tax brackets are also staying the same this year, ranging from
10% to 37%.
Health Savings Accounts:
Health Savings Accounts (HSAs) the contribution limit is $4150 for self- only coverage.
$8300 for family coverage.
Profit Sharing Plan and SEP contribution:
Profit Sharing Plan and SEP contribution limit is $69000.
Social Security Key Amounts:
The maximum earnings subject to social security tax is $168600.
Medicare tax No Limit.
Tax Rules by Age for 2024:
Age 13: Cannot claim childcare credit for children age,13 or older.
Age 17: Cannot claim $2000 child tax credit for children age,17 or older.
Age 19: Claiming children who are not full-time students as dependent expires.
Age 24: Claiming children who are full-time students as dependents expires.
Age 25: Taxpayers with no children qualify for EIC.
Age 59 and a half: Penalty for early withdrawal from retirement accounts expires.