Every year the IRS comes out with updated numbers. Rather than having you sift through all of them, we have put together a blog that details out a few numbers you should be aware of. Here are the updated 2024 IRS numbers.
Personal Tax Changes
The standard deduction deduction is $14,600 for Single filers and is $29,200 for Married Filing Jointly.
The annual exclusion for gifts increases from $17,000 in 2023 to $18,000 for calendar year 2024. The lifetime gift tax/estate tax exclusion is $13.61 million per taxpayer.
Maximum 401(k) plan contributions hae been inc to $23,000. It’s important to note that catch-up contributions (for people 50 years and over) is $7,500.
Maximum traditional and Roth IRA contributions are $7,000, and catch-up contributions for people 50 years and over is $1,000.
The adoption credit has been increased from $15,950 to $16,810.
Business Mileage
Business mileage is also something you should be aware of. The deduction for 2024 has slightly increased.
As detailed on Drivernote.com, here’s a nice chart showing the updates:
Bonus depreciation
As the bonus depreciation percentage decreases, the immediate tax savings from purchasing assets decrease correspondingly.
Here is the timeline for applying bonus depreciation:
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