Must-Know IRS Changes Ahead of the 2024 Tax Season

Must-Know IRS Changes Ahead of the 2024 Tax Season

Must-Know IRS Changes , Ahead of the 2024 Tax Season.

GoBankingRates recently offered readers a guide to several significant changes the IRS has announced ahead of the upcoming 2024 tax season.

Here's everything , you need to know.

1.

Bigger standard deductions, For 2024, the IRS has bumped up the standard deduction to $13,850 for single filers and $27,700 for married couples filing jointly.

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2.

Modified tax brackets, In order to account for high inflation, the IRS has adjusted the 2024 income tax brackets.

For 2024, each income bracket's threshold has been increased slightly to potentially reduce the overall tax rate and lower the amount people owe.

For 2024, each income bracket's threshold has been increased slightly to potentially reduce the overall tax rate and lower the amount people owe.

3.

1099-K Changes, These changes will impact many freelancers, gig workers and small business owners.

GoBankingRates suggests that anyone receiving one of these forms should pay close attention to make sure they accurately report their income.

4.

Retirement Plan Contributions, In 2024, taxpayers should note changes to contribution limits for Roth IRAs, traditional IRAs and 401(k) plans.

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5.

Specific Roth and 401(k) Changes, These modifications include income limits for eligibility, withdrawal restrictions or loan provisions.

GoBankingRates points out that these changes could significantly impact taxpayers' retirement planning strategies.

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The changes could specifically impact the plans of those nearer to retirement or anyone looking to make an early withdrawal