Tax Season 2024
Frequently Asked Questions
Here are answers to our most frequently asked questions
The standard deduction for 2023 also increased by about 7%, to $13,850 for individuals and $27,700 for married couples filing jointly.
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 Dec. 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.
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.
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.
2024 Tax FAQs – Source: https://www.usatoday.com/story/money/2023/12/26/2024-tax-season-questions/72002518007/