HELPFUL INFORMATION FOR YOUR BUSINESS DURING COVID-19

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With the new year comes new tax laws. It’s bound to happen every year! While you’re probably knee-deep in gathering the information for your 2023 tax return, it’s important to note the changes for 2024 to assist in your tax planning. Here are just a few 2024 tax law changes for business owners (these are always subject to change – thanks, IRS).

Business owner looking at 2024 tax law changes

Standard Deduction for 2024

  • Married filing jointly: $29,200 (up from $27,700)
  • Single: $14,600 (up from $13,850)
  • Head of Household: $21,900 (up from $20,800)

IRA Contribution limit for 2024

The IRA contribution limit that can be deducted for 2024 is $7,000 for those under 50 (up from $6,500) and $8,000 for those 50 and over (up from $7,500).

Mileage Rates for 2024

The 2024 mileage rate is 67 cents per mile for business purposes (up 1.5 cents), 21 cents per mile for medical purposes or moving expenses for qualified active-duty military members (decrease of 1 cent), and 14 cents per mile for charitable organization services (no change).

Estate Exclusion for 2024

The basic exclusion amount for estates of descendants who die during 2024 is $13,610,000 (up from $12,920,000).

Gift Exclusion for 2024

For the 2024 tax year, the annual exclusion for gifts increased to $18,000 (up from $17,000).

Employee Salary Reductions for 2024

The maximum amount an employee can contribute to a health savings account has increased to $4,150 in 2024 (up from $3,850).

Again, please note that these are just a few of the changes in 2024 and are subject to change.  Please check with your CPA for an update on the tax law changes that pertain to your tax situation.

More on Taxes from Numberwise:

5 common tax myths debunked

The dog at my tax docs – excuses for late filings

Tax procrastination and how to tackle tax prep now

Pandemic tax deductions 

How is Crypto taxed?

About the Author

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Stephanie Lorntzen

Stephanie Lorntzen is a CPA who has worked for both large accounting firms and small businesses. Her background is in auditing, financial analysis, and financial reporting. For Numberwise, she helps business owners by answering all their questions about where their money is going.
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