In any of the States of the United States the Tax Return is a very important element for the society. Every year we have to send to the IRS our documents to declare what taxes we have paid and what taxes we will have to pay.
What for some may seem a negative thing, since paying taxes is not something that everyone wants to do, for others it is something beneficial. Thanks to taxes, the United States Government is able to carry out a wide range of social activities such as paying Social Security checks.
But every year we are faced with tax changes, so in the next Tax Return we will have to take into account some things that possibly until now we should not have kept in mind.
So if you’re financially active, whether you’re drawing a salary from work or a Social Security check, you’ll want to know about all the changes to the Tax Return in 2024. No one wants to mis-submit documents to the IRS, so pay attention to everything you need to do.
TAX RETURN CHANGES IN 2024
These new changes don’t have to affect you in their entirety. Some changes might affect your Tax Return, but others might simply have nothing to do with your taxes. So check them all out and then start organizing your finances based on the changes that affect you directly.
These will be those changes:
- New limits on 401(k). Starting next year this retirement plan will increase to $23,000. So we will be able to pay more for it.
- More IRA contributions. Similarly, the IRA limit will also increase, so we will be able to put in up to $7,000.
- Catch-up contribution changes. Employees in their 50s or with 401(k) and similar plans will be able to add $7,500 in catch-up contributions.
- It will be possible to eliminate or reduce the deduction depending on marital status rather than income for taxpayers covered by the retirement plan.
- The income phase-out for taxpayers in an IRA becomes $146,000 to $146,000 in 2024 for singles and heads of household.
- Married couples will be able to file jointly with a larger income phase-out range. The increase will be between $230,000 and $240,000.
- The income limits on the Tax Return for citizens with low income is $76,500 in 2024 for married couples filing jointly. For single citizens it will be $38,250.
- Simple Retirement will also have a higher maximum contribution: $16,000.
With all this in mind we have to make next year the Tax Return declaration, although in reality we would be talking about sending the documents of the year 2025, since it would be when we would implement the income and expenses of next year 2024.