Current:Home > FinanceTrendPulse|Tax season can be terrifying. Here's everything to know before filing your taxes in 2024. -ProgressCapital
TrendPulse|Tax season can be terrifying. Here's everything to know before filing your taxes in 2024.
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Date:2025-04-08 20:45:30
The TrendPulsepause between Christmas and New Year’s is a moment when many of us begin to contemplate the looming labors of tax season.
When is the earliest I can file a return? When is the latest? Have the income brackets changed? What about deductions?
Here are answers to 13 common questions that crop up in the weeks before tax season begins.
When is the tax deadline in 2024?
April 15. Tax Day always falls on that date, unless April 15 falls on a weekend or holiday. Next year, it comes on that darkest of days, a Monday.
When does tax season start?
Late January. In 2023, the IRS set January 23 as the official start of tax season, marking the date the agency began accepting 2022 tax returns.
How early can I file my 2023 taxes?
Again, late January. The IRS has not yet set the date it will begin accepting 2023 returns.
What are the new income tax brackets?
Income tax brackets jumped by 7% for 2023. Income tax is progressive: the more you earn, the more you pay as a percentage of your earnings. Each bracket represents a range of incomes subject to a particular income tax rate. Tax brackets will rise again in 2024.
Here are the 2023 tax brackets:
For individual filers:
- 37% for incomes over $578,125.
- 35% for incomes over $231,250.
- 32% for incomes over $182,100.
- 24% for incomes over $95,375.
- 22% for incomes over $44,725.
- 12% for incomes over $11,000.
- 10% for income below $11,000.
For married couples filing jointly:
- 37% for income greater than $693,750.
- 35% for incomes over $462,500.
- 32% for incomes over $364,200.
- 24% for incomes over $190,750.
- 22% for incomes over $89,450.
- 12% for incomes over $22,000.
- 10% for income below $22,000.
What is the new standard deduction?
The standard deduction for 2023 also increased by about 7%, to $13,850 for individuals and $27,700 for married couples filing jointly.
What is the standard deduction for seniors?
People over 65 qualify for an additional standard deduction. For 2023, it’s $1,850 if you are single or filing as a head of household, and $1,500 for married taxpayers. Both figures increased by $100 over 2022.
Have itemized deductions changed?
Itemized deductions “mostly remain the same” in 2023, according to Charles Schwab. A few specifics:
- State and local taxes: Taxpayers who itemize may deduct up to $10,000 in property, sales or income taxes they have already paid to local or state governments.
- Mortgage interest: You can generally deduct interest paid on the first $750,000 of mortgage debt, according to NerdWallet. People who bought a house before December 16, 2017, may deduct interest on the first $1 million.
- Medical expenses: You may deduct only medical and dental expenses that exceed 7.5% of your adjusted gross income.
What are the new IRA and 401(k) contribution limits?
Employees who participate in company retirement plans could generally contribute $22,500 to their 401(k) this year, up from $20,500 in 2022. Those who didn’t participate in an employer-sponsored plan could contribute $6,500 to an individual retirement account (IRA). People 50 and older have higher limits.
For 2024, the limits rise to $23,000 and $7,000.
What is the new health savings account (HSA) contribution limit?
HSA contribution limits were $3,850 for individual coverage and $7,750 for family coverage in 2023, according to Fidelity. In 2024, they rise to $4,150 and $8,300.
What is the income limit for child tax credits?
The 2023 child tax credit is worth up to $2,000 per qualifying dependent under age 17, according to NerdWallet. The credit decreases if your modified adjusted gross income exceeds $200,000, or $400,000 for a married couple filing jointly.
What’s the difference between filing as single or head of household?
You can claim “Head of Household” status if you are single or unmarried and maintain a household that includes a child or relative. The status provides for a larger standard deduction and more generous tax rates, according to H&R Block.
Early birds:Your single largest payday may be a 2023 tax filing away. File early to get a refund sooner
Where can I find a tax refund estimator?
TurboTax, H&R Block, NerdWallet and AARP all offer tax refund estimators.
When can I expect my refund?
In a month or less, in most cases. The IRS says it issues most refunds within 21 calendar days. Paper returns, however, can take four weeks or more. And allow for time for the refund check to actually reach your bank account or mailbox.
More of your 2024 tax season questions answered
IRS announces new tax brackets for 2024. What does that mean for you?
Flush with new funding, the IRS zeroes in on the taxes of uber-wealthy Americans
Need a new tax strategy? These money-saving tips taken by Dec 31 may help pad your pockets
Your single largest payday may be a 2023 tax filing away. File early to get a refund sooner
Is it better to pay someone to do your taxes or do them yourself? We'll help you decide.
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Daniel de Visé covers personal finance for USA Today.
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