IRS Updates
Crew Taxes
IRS Information
Here are the IRS updates for the tax year 2024 from . Feel free to call with any questions.
Unchanged for Tax Year 2024
- Other Dependent Credit: $500 nonrefundable credit for each qualifying person on the return.
- Per Diem Calculations: Only available for state returns where employee expense deductions are allowed (AL, AR, CA and HI) . And Federal Tax returns prior to 2018.
- SALT (State & Local Taxes): Which include state, local, and property taxes are still limited to $10,000.
- Child Tax Credit (CTC): Child tax credit is reduced back to $2,000 per child if your MAGI does not exceed a certain limit.
- Child and Dependent Care Credit: The maximum credit percentage is 35%. It is allowed for up to $3,000 in expenses for one child/disabled person and $6,000 for more than one.
- Medical Deductions: Out-of-pocket medical expenses must exceed 7.5% of Adjusted Gross Income. Medical expenses do not include pre-tax payroll deductions for company health insurance.
- Residential Clean Energy Credit (SOLAR): For 2022-2032, 30% with no annual maximum or lifetime credit.
- 1099-K Income Earners: For 2024, if you accept payments for goods or services over a third-party network (i.e., Venmo, PayPal, Stripe, Square, Zelle, Cash App) that exceeds $600 annually, you will receive a 1099-K and have to report it as income.
- Energy Efficient Improvement Credit: For 2023-2032, 30%, up to a maximum of $1,200, no lifetime limit.
- Capital Gains: Short-Term capital gains are taxed as ordinary income. Long-Term gains are taxed 0%, 15%, and 20% depending on income and filing status.
Changes for Tax Year 2024
- Roth Contribution Phase-Out: The Adjusted Gross Income (AGI) phase out range for taxpayers married filing joint in 2024 = $230,000-$240,000. Phase out range for single and head of household filers are $146,000-$161,000, respectively.
- Contributions limit is $7,000; and $8,000 over the age of 50.
- Gift Exclusions: For 2024 a maximum of $18,000/person; this amount is not tax deductible to the gifter, nor is it taxable income to the recipient.
- 401K Contributions: For 2024, maximum contributions of $23,000 under the age of 50. Over the age of 50, an additional $7,500 may be contributed (catch up contributions).
- Traditional Contribution Phase-Out: The Adjusted Gross Income (AGI) phase out range for taxpayers married filing joint in 2024=$123,000 to $143,000; and for single and head of household filers=$77,000 to $87,000. If only one spouse is covered by a plan, the phase out zone for deducting a contribution for the uncovered spouse starts at $230,000 of AGI and ends at $240,000.
2024 Standard Tax Deductions
- Single/Married Filing Separate $14,600
- Married Filing Jointly $29,200
- Head of Household $21,900
Marginal Tax Brackets
| TAX BRACKET | SINGLE | HEAD OF HOSUEHOLD | MARRIED FILING JOINT | MARRIED FILING SEPARATELY |
|---|---|---|---|---|
| 10%= | $0 – $11,600 | $0 – $16,550 | $0 – $23,200 | $0 – $11,600 |
| 12%= | $11,601 – $47,150 | $16,551 – $63,100 | $23,201 – $94,300 | $11,601 – $47,150 |
| 22%= | $47,151 – $100,525 | $63,101 – $100,500 | $94,301 – $201,050 | $47,151 – $100,525 |
| 24%= | $100,526 – $191,950 | $100,501 – $191,950 | $201,051 – $383,900 | $100,526 – $191,950 |
| 32%= | $191,951 – $243,725 | $191,951 – $243,700 | $383,901 – $487,450 | $191,951 – $243,725 |
| 35%= | $243,726 – $365,600 | $243,701 – $609,350 | $487,451 – $731,200 | $243,726 – $365,600 |
| 37%= | 365,601 | $609,351 + | $731,201 + | 365,601 |