There are also 14 states that offer their own child tax credit, according to the National Conference of State Legislatures.Ĭapitol Hill lawmakers have pushed to expand the child tax credit. Up to $1,600 of the payout is refundable for 2023 taxes. The child tax credit pays up to $2,000 for each qualifying child under age 17. The child tax credit will remain the same. That's why they often rise from year to year, especially now. The standard deduction, income-tax brackets and retirement-account contributions are indexed for inflation. For people age 50 and above, the limit is $7,500. If you're age 49 and below, the maximum is $6,500. There's an April 15 deadline for IRA contributions. Retirement savers still have time to put more money into their IRAs. People can choose between itemized deductions and standard deduction, but IRS statistics show roughly 90% of taxpayers choose the standard deduction as the way they'll shrink their taxable income.Īs for your 401(k) contributions, the maximum amount you can tuck away is $23,000 this year, up from $22,500 the year before. It's $14,6 returns, which will be filed early next year.įor married couples filing jointly, the amount is $27,700 in tax year 2023. The standard deduction for tax year 2023 is $13,850 for individuals. We'll file the tax returns using these brackets in early 2025.Īlso remember that the tax brackets aren't the final number on a household's tax bill. These brackets increased 5.4% year over year. Then there's the tax year 2024 brackets, which the IRS announced in November. The ranges jumped 7%, the largest year-over-year pop for the brackets in decades, according to one expert.Ĭheck out this IRS link, beginning at page 6, for a breakdown on the tax brackets for tax year 2023. The IRS unveiled income-tax brackets in fall 2022, which factored in four-decade high inflation that burned through 2022. "NTEU urges Congress to move quickly to fully fund federal agencies for the remainder of the fiscal year and put to rest the threat of government shutdowns," Greenwald said. "During filing season, the IRS should be able to focus all its efforts on assisting taxpayers," said Doreen Greenwald, national president of the National Treasury Employees Union, a union of federal workers at agencies including the IRS. The plans were built for a time when the IRS wasn't in its filing season, she noted. When lawmakers last flirted with a shutdown in the fall, the Treasury Department drew up contingency plans. "Taxpayers will be able to file their taxes in the event of a lapse," Treasury Department spokesperson Ashley Schapitl said.īut Lauridsen is worried what the experience is going to be like if people and tax professionals have questions they can't figure out on their own and need IRS staff assistance. To be sure, an impasse wouldn't sink filing season. 19, other agencies have funding through Feb. While some agencies have money through Jan. 19 deadline to hatch a funding deal and avoid a partial shutdown. There's a 2024 wrinkle: the chance of a federal government shutdown just as tax season comes into full swing.Ĭongress has a Jan. Here's an IRS link to help you start planning for the upcoming filing season. That includes gathering receipts for potential deductions, and keeping an eye for tax forms in the mail and via email, including W-2s from an employer. "Be prepared and be organized," said Melanie Lauridsen, vice president of tax policy and advocacy at the American Institute of CPAs. While we wait for the start date, there are things people can do. The IRS also accepts installment plans.Īpril 15 is also the deadline to either file a 2023 return or get an extension. April 15 is still Tax Day, meaning that's the deadline to pay any tax owed. The filing season marks the date when the IRS begins accepting and processing income-tax returns. 12, a delayed start while the Internal Revenue Service caught its breath after a second round of stimulus checks. Last year, the filing season kicked off on Jan. If history is any guide, it's coming soon. These are valid questions from people who are trying to plan their financial lives for 2024, and this column is about providing answers.įirst off, there's no date announced yet for the start of the 2024 filing season, an IRS spokesperson said. In fact, your letter is a mash-up of trending early January Google (GOOG) queries that were related to taxes. But you ask a lot of good and timely questions. What's the child tax credit for 2024? How about the standard deduction? And what are the 401(K) limits for this year?įull disclosure: I usually respond to questions from people on very tax topics. When can I file my income taxes for 2024? While we're at it, what are the income tax brackets this year? A Tax Guy column for trending tax questions at the start of 2024
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