What are the key changes to tax laws in 2024 for individuals?.

In 2024, individual tax laws will see several important changes that can affect taxpayers. Key adjustments include:

Key Facts

• Updated Tax Brackets: Income thresholds for tax rates are adjusted for inflation, impacting how much you owe.
• Standard Deduction Increase: The standard deduction rises to $14,600 for single filers and $29,200 for married couples filing jointly.
• Child Tax Credit Expansion: The Child Tax Credit will now provide up to $3,600 per eligible child under the age of 6, phased out for higher incomes.
• Retirement Contribution Limits: 401(k) contribution limits increase to $23,000 for individuals under 50, promoting savings for retirement.

Examples or Use Cases

For instance, a single filer with an income of $60,000 can benefit from the adjusted tax bracket, lowering their effective tax rate compared to 2023. Similarly, families with multiple children can see a significant tax reduction due to the enhanced Child Tax Credit.

FAQs

• Will my tax refund change due to the new laws? Yes, depending on your income and deductions, your refund may vary based on these changes.
• Are there any new credits available in 2024? The Earned Income Tax Credit has been expanded for lower-income workers, making it more accessible.