2024 tax law changes

The standard deduction for married couples filing jointly rises to $29,200. Single taxpayers rises to $14,600 and Head of Household will be $21,900

Single Taxpayer:

If Taxable income is: The Tax Due is:

0-$11,600 10% of the taxable income

$11,601-$47,150 $1,160 + 12% over $11,600

$47,151-$100,525 $5,426 + 22% over $47,150

$100,526-$191,950 $17,168.50 + 24% over $100,525

$191,950-$243,725 $39,110.50 + 32% over $191,950

$243,726-$609,350 $55,678.50 + 35% over $243,725

$609,351 + $183,647.25 + 37% over $609,351

Married Taxpayers Filing Jointly

If Taxable income is: The Tax Due is:

0-$23,200 10% of the taxable income

$23,201-$94,300 $2,320 + 12% over $23,200

$94,301-$201,050 $10,852 + 22% over $94,300

$201,051-$383,900 $34,337 + 24% over $201,050

$383,901-$487,450 $78,221 +32% over $383,900

$487,451-$731,200 $111,357 + 35% over $487,450

$731,201+ $196,669.50 +37% over 731,200

Gross Income Limitations for a Qualifying Relative increases to $5,050 for earned income.

Student Loan interest deduction rises to $2,500 up $100 from last year but phases out for taxpayers making over $80,000 S or $165,000 MFJ

Annual Exclusion for Gifts tax free is $18,000

SS Taxable earnings cap is $168,600 before the 6.2% stops getting deducted.

The standard mileage rate for business deductions is 67 cents per mile. $.67 Charitable mileage rate is $.14 and medical miles went down a penny to $.21

The threshold for 1099-K sales from platforms like PayPal and Venmo is $5,000 in business earnings.

Starting in 2025 all businesses will need to file a new report called a Beneficial Ownership Information report. It is basically like our secretary of state in TN annual report, except this is on the federal level and at this point there is no payment due when filing. If you have a partnership, you must enter the information about each partner and upload a state issued ID for each member a long with their personal address and other information requested. It is up and running for 2024 but only required for new businesses formed in 2024. There are some that are exempt from filing as well and you can read all about it here https://fincen.gov/boi UPDATE: There was a lawsuit filed that said that this was unconstitutional and no we no longer have to file. I found this out 12/4/24 at 10pm EST.

Be sure to change your address for everyone who will send you tax documents. Tax documents WILL NOT forward.