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).
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:
The dog at my tax docs – excuses for late filings
