Single and Married Filing Separate = $14,600
Married Filing Joint and Surviving Spouse = $29,200
Head of Household = $21,900
The Standard Deduction for a dependent is the greater of (1) $1,300, or (2) the sum of $450 and the individual's earned income (not to exceed $14,600).
The additional Standard Deduction amount for the age 65 or older or blind is $1,550 for married individuals and $1,950 for Single and Head of Household.
PERSONAL EXEMPTION AMOUNT
There is no longer a personal exemption deduction. However, the amount of the gross income limitation for determining if a person is a qualifying relative is $5,050.
CONTRIBUTION LIMITS FOR TAX-DEFERRED PENSION PLANS -
IRA = $7,000
IRA Catch-Up Contributions (50 and older) = $1,000
SIMPLE Plan = $16,000
SIMPLE Catch-Up Contributions (50 and older) = $3,500
401(k), 403(b), 457, Thrift Savings Plan (TSP) = $23,000
401(k), 403(b), 457, TSP Catch-Up Contributions (50 or over) = $7,500
SEP or Solo401(k) plan = $69,000.
The AGI phase-out range for contributions to a traditional IRA by taxpayers who are active participants in an employer retirement plan are -
$77,000 - $87,000 = Single and Head of Household
$123,000 - $143,000 = Married Filing Joint and Qualifying Widow(er)
$0 - $10,000 = Married Filing Separate
The deduction on a joint return for a spouse that is not an active participant in an employer plan, but who is married to one who is, phases out at AGI of $230,000 to $240,000.
Individuals can make contributions to a traditional IRA account as long as they have qualified “compensation” – taxable salaries and wages, net earnings from self-employment, nontaxable combat pay, taxable alimony, and nontaxable difficulty of care payments – regardless of their age.
The AGI phase-out range for making contributions to a Roth IRA is -
$146,000 - $161,000 = Single and Head of Household
$230,000 - $240,000 = Married Filing Joint and Qualifying Widow(er)
$0 - $10,000 = Married Filing Separate
The maximum amount of total Qualified Charitable Distributions (QCD) an individual age 70½ can directly transfer from an IRA account to a qualifying charitable organization is $105,000.
FOREIGN EARNED INCOME EXCLUSION
For 2024 the foreign earned income exclusion is $126.500.
STUDENT LOAN INTEREST DEDUCTION PHASE-OUT
The AGI phase-out range for the up to $2,500 adjustment to income for student loan interest is –
|
Single or Head of Household |
80,000 – 95,000 |
|
Married Filing Joint |
165,000 – 195,000 |
|
Married Filing Separate |
not available |
LONG-TERM CARE PREMIUM DEDUCTION LIMITS
|
Age 40 or less |
470 |
|
Age 41 – 50 |
880 |
|
Age 51 - 60 |
1,760 |
|
Age 62 - 70 |
4,710 |
|
Age 71 and over |
5,880 |
QUALIFIED BUSINESS INCOME (QBI) DEDUCTION
-----TAXABLE INCOME BEFORE QBI DEDUCTION-----
|
SINGLE & HEAD OF HOUSEHOLD |
MARRIED JOINT |
MARRIED SEPARATE |
QUALIFIED BUSINESS |
SPECIFIED SERVICE |
|
0–191,950 |
0-383,900 |
0–191,950 |
20% |
20% |
|
191,901–241,950 |
383,901–483,900 |
191,951-241,950 |
Phase-out |
Phase-out |
|
Over 241,950 |
Over 483,900 |
Over 241,950 |
Limited |
No deduction |
|
Maximum contribution – single coverage |
4.150 |
|
Maximum contribution – family coverage |
8,300 |
|
Maximum deductible – single coverage |
1.600 |
|
Maximum deductible – family coverage |
3,200 |
|
Maximum out-of-pocket – single coverage |
8,050 |
|
Maximum out-of-pocket – family coverage |
16,100 |
|
SINGLE |
HEAD
OF HOUSEHOLD |
MARIED
JOINT |
MARRIED
SEPARATE |
|
|
10% |
0-11,600 |
0-16,550 |
0-23,200 |
0-11,600 |
|
12% |
11,601-47,150 |
16,551-63,100 |
23,201-94,300 |
11,601-47,150 |
|
22% |
47,151-100,525 |
63,101-100,500 |
94,301-201,050 |
47,151-100,525 |
|
24% |
100,526-191,950 |
100,501-191,950 |
201,051-383,900 |
100,526-191,950 |
|
32% |
191,951-243,725 |
191,951-243,700 |
383,901-487,450 |
191,951-243,725 |
|
35% |
243,726-609,350 |
243,701-609,350 |
487,451-731,200 |
243,726-365,600 |
|
37% |
609,351
or more |
609,351
or more |
731,201
or more |
365,601
or more |
QUALIFIED DIVIDENDS AND LONG-TERM CAPITAL GAINS TAX 0% INCOME THRESHOLD
|
FILING STATUS |
0%
RATE |
15%
RATE |
20%
RATE |
|
SINGLE |
Up
to 47,025 |
47,026 to 518,900 |
518,901 or more |
|
MARRIED JOINT |
Up to 94,050 |
94,051 to 583,750 |
583,751 or more |
|
MARRIED SEPARATE |
Up to 47,025 |
47,026 to 291,850 |
291,851 or more |
|
HEAD OF HOUSEHOLD |
Up to 63,000 |
63,001 to 551,350 |
551,351 or more |
LIFETIME LEARNING CREDIT
The Lifetime Learning Credit AGI phase-out range remains unchanged.
|
FILING STATUE |
PHASE-OUT RANGE |
|
Single or Head of Household |
80,000 – 90,000 |
|
Married Joint |
160,000 – 180,000 |
The credit is not available for married taxpayers filing separate returns.
2024 RETIREMENT SAVINGS CONTRIBUTIONS CREDIT
|
RATE |
SINGLE/SEPARATE |
MARRIED JOINT |
HEAD OF HOUSEHOLD |
|
50% |
0 to 23,000 |
0 to 46,000 |
0 to 34,500 |
|
20% |
23,001 to 25,000 |
46,001 to 50,000 |
34,501 to $37,500 |
|
10% |
25,001 to 38,250 |
50,001 to 76,500 |
37,501 to $57,375 |
|
0% |
$38,251 or more |
76,501 or more |
57,376 or more |
SOCIAL SECURITY AND MEDICARE
The wage base for computing the Social Security component of the FICA tax is $168,600. The maximum withholding for Social Security tax is $10,453.20.
The Self-Employment Tax is a 12.4% Social Security tax on the first $168,600 of self-employment income, for a maximum of $20,906.40, plus a 2.9% Medicare tax on all self-employment income.
The 0.9% Medicare Surtax is assessed on wages and self-employment income more than:
Married Filing Jointly or Qualifying Widow(er) = $250,000
Single or Head of Household = $200,000
Married Filing Separately = $125,000
MEDICARE INCOME-RELATED MONTHLY ADJUSTMENT AMOUNTS
The 2024 the basic monthly Medicare Part B premium is $174.70. The basic monthly Part D premium is based on the plan chosen. The IRMAA is based on MAGI for 2021.
|
SINGLE/HOH FILERS WITH MAGI - |
JOINT FILERS WITH MAGI - |
MONTHLY PART B IRMAA |
MONTHLY PART D IRMMA |
|
0–103,000 |
0-206,000 |
0.00 |
0.00 |
|
103,001–129,000 |
206,001-258,000 |
69.90 |
12.90 |
|
129,001–161,000 |
258,001-322,000 |
174.70 |
33.30 |
|
161,001-193,000 |
322,001-386,000 |
279.50 |
53.80 |
|
193,001–499,999 |
386,001-749,999 |
384.30 |
74.20 |
|
500,000 or more |
750,000 or more |
419.30 |
81.00 |
|
SEPARATE FILERS (LIVED WITH SPOUSEANYTIME DURING YEAR) WITH MAGI - |
MONTHLY PART B IRMMA |
MONTHLY PART D IRMMA |
|
0-103,000 |
0.00 |
0.00 |
|
103,001-396,999 |
384.30 |
74.20 |
|
397,000 or more |
419.30 |
81.00 |
ESTATE AND GIFT TAX
The annual gift tax exclusion is $18,000 per person. The estate tax exemption, also known as the unified credit, is $13,610,000.
THE SHAFT
I am not talking about what the government gives taxpayers. The “shaft tax” imposed on the first sale by the manufacturer, producer, or importer of any shaft of a type used in the manufacture of certain arrows is 62 cents per shaft.
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