While 2024 marks the start of a new tax year, tax season for the 2023 tax year begins January 29th. It’s important to be aware of tax changes that can impact you in order to ensure that you are filing your taxes correctly and that you’re taking advantage of all deductions and credits available to you. Fortunately, a CPA can enlighten you to every tax change that’s applicable to you so that you can rest assured that your taxes are done right.
Bear in mind that in order to know all tax changes that apply to you, you will need to work with an experienced tax professional, like the certified public accountants here at Golub, Senitt, Rosenberg & Co. This blog is in no way intended to be taken as professional tax advice, but rather to provide you with general information that may or may not apply to you and your specific tax situation.
Tax Changes For The 2024 Tax Season
Some of the tax changes for this year’s tax season are as follows.
Standard Deductions
For personal taxes, standard deductions have gone up. For the 2023 tax year, filed during the 2024 tax season, the adjusted standard deductions are as follows:
- $13,850 for single filers and married couples filing separately
- $27,700 for married couples filing jointly
- $20,800 for heads of household
California-Specific Tax Changes
Depending on your state, factors impacting your tax obligations may vary. As a CPA firm based in Los Angeles county, we’re here to help our fellow Californians with state-specific tax changes, too.
Here are a handful of recent California tax changes.
- California will raise the minimum wage for fast food workers to $20 an hour on April 1. Healthcare workers will see the first increases in their minimum wage on June 1.
- California funds the state’s disability insurance program through a payroll tax. In 2024, the state is lifting the wage ceiling for the state’s disability insurance program. Top marginal individual income tax rate on wage income will become 14.4%.
- California’s Foster Youth Tax Credit is increasing to as much as $1117 for the 2023 tax year.
- The New Employment Credit has expanded for qualified taxpayers engaged in semiconductor manufacturing, research, and development, as well as lithium production, manufacturing of lithium batteries, or electrical airplane manufacturing.
- A High Road Cannabis Tax Credit will be available to a qualified taxpayer that is a licensed commercial cannabis business that meets specified criteria.
- And more. Consult with your CPA to understand the tax changes that apply to you.
Tax Changes For The 2024 Tax Year
Some of the tax changes occurring in this new tax year are as stated below. While no new notable tax laws are currently on the horizon for 2024, this can change based on the 2024 November elections.
Standard Deductions
Higher federal income tax brackets and increased standard deductions to help combat “bracket creep” from inflation will take effect.
For personal taxes, the standard deduction for the 2024 tax year will be higher than the 2023 deductions.
- $14,600 for single filers and married couples filing separately
- $29,200 for married couples filing jointly
- $21,900 for heads of household
Tax Bracket Adjustments
Your tax bracket is what your tax rate is based on your income range. These have gone up a few hundred dollars in order to counteract inflation.
- 37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly).
- 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)
Tax-Deferred Retirement Accounts
Tax payers will be able to contribute more to tax-deferred retirement accounts in 2024, something important to note for your tax retirement planning.
Let Our CPAs Help You With Your Taxes
Working with a certified public accountant allows you to be aware of all your tax responsibilities. It’s part of our job to stay on top of changes in tax laws, regulations, and deductions and credits in order to provide both our personal and business tax clients with accurate and timely work.
Beyond helping you with personal taxes preparation or business taxes preparation, we provide year-round tax services, such as tax planning, tax audits, and more. While tax season is nearly upon us, taxes aren’t all that we do. We also provide financial advisory and consulting services to help your business grow.
Contact us today to schedule your tax consultation, and experience the difference of working with dedicated professionals who care.
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