Demystifying Tax Season 2024: What You Need to Know

Oriana Suarez January 17, 2024

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Demystifying Tax Season 2024: What You Need to Know

Demystifying Tax Season 2024: What You Need to Know

As January unfolds and tax season takes center stage, questions about filing dates, income brackets, and deductions begin to surface. Here's your comprehensive guide to 13 common questions that typically arise in the last days leading up to the official kick-off of tax season. Let's navigate the complexities together!

1. When is the tax deadline in 2024?

This year Tax Day is April 15, falling on a Monday, so mark your calendars and plan accordingly to meet the deadline.

2. When does tax season start?

Tax season generally commences in late January. The IRS officially began accepting 2022 tax returns on January 23, 2023. Stay tuned for the official start date for 2023 returns.

3. How early can I file my 2023 taxes?

The IRS typically starts accepting returns in late January. However, the official date for returns is yet to be announced. Stay informed to file promptly.

4. 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.

5. What is the new standard deduction?

The standard deduction for 2023 increased by approximately 7% to $13,850 for individuals and $27,700 for married couples filing jointly. Consider how this impacts your overall tax strategy.

6. What is the standard deduction for seniors?

Individuals over 65 qualify for an additional standard deduction, with 2023 figures at $1,850 for singles or heads of households and $1,500 for married taxpayers. Take advantage of available deductions.

7. Have itemized deductions changed?

Itemized deductions remain the same in 2023, but specifics on state and local taxes, mortgage interest, and medical expenses are crucial to understanding potential deductions.

8. What are the new IRA and 401(k) contribution limits?

Contribution limits for 401(k)s and IRAs increased in 2023 and will rise further in 2024. Plan your retirement contributions accordingly.

9. What is the new health savings account (HSA) contribution limit?

Health Savings Account (HSA) contribution limits increased for 2024. Explore how this affects your healthcare savings strategy.

10. What is the income limit for child tax credits?

The 2023 child tax credit is up to $2,000 per qualifying dependent under age 17, with income limits. Understand eligibility to maximize available credits.

11. 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. 

12. Where can I find a tax refund estimator?

Platforms like TurboTax, H&R Block, NerdWallet, and AARP offer tax refund estimators. Utilize these tools to estimate your potential refund.

13. When can I expect my refund?

Most refunds are issued within 21 calendar days, but paper returns may take longer. Allow for processing time and plan your finances accordingly.

Navigating tax season can be daunting, but armed with this knowledge, you'll be well-prepared to tackle your 2024 taxes with confidence. Stay informed, meet deadlines, and make the most of available deductions for a smooth tax-filing experience, and if you need a hand don't hesitate - we're here to help! 

 

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