What are the latest tax reforms in the United States for 2024?.

The latest tax reforms in the United States for 2024 include adjustments to individual income tax brackets, an increase in the standard deduction, and new credits for low- and middle-income families. The top income tax rate remains at 37%, but the income thresholds have been modified to account for inflation.

Key Facts

• The standard deduction for single filers is now $14,600, and for married couples, it's $29,200.
• New tax credits have been introduced, such as the Child Tax Credit expansion which now offers $3,600 per child under 6.
• The Earned Income Tax Credit (EITC) has been adjusted, increasing eligibility for more families.
• Corporate tax rate remains at 21%, unchanged from previous reforms.

Examples or Use Cases

• A single parent with two children will benefit from the expanded Child Tax Credit, significantly reducing their tax liability.
• Families earning between $30,000 and $50,000 can see increased EITC benefits, encouraging workforce participation.

Common Mistakes / FAQs

• Failing to adjust withholdings according to new deductions can lead to unexpected tax bills.
• Many taxpayers overlook eligibility for new credits available in 2024.