Tax season is upon us. I am sure that you have been getting reminders since the end of January as W-2 forms and 1099’s have been arriving at your home. Each year there are changes to the tax code. Who has time to research and pour through that material? Not me. However, The Ramsey Show breaks down the new tax updates in their video, “What You Need to Know for Tax Season 2024.”
Not being a tax professional myself, I am in no way telling you how to file your taxes. In the end, that is completely between you and the government. However, as we prepare for filing our returns, it is good to know what is new this season. Therefore, watch the video and take notes.
Important Dates
This year April 15th is the deadline to file your 2023 taxes. If you file an extension, then your new deadline is October 15th. These dates are the deadline to not only file your returns but also pay if you owe.
Key Updates
The government has increased both the standard deduction amounts as well as the income brackets. The latter was adjusted to account for inflation. So this is good news for the taxpayer. Not that we have inflation, but that the government acknowledges the adverse effect it has had on our income. Is it a big enough adjustment? You can decide for yourself. Either way, we are looking at single filers getting $13,850 as their standard deduction. Married couple will get $27,700 as their standard deduction. To see the new income brackets, click here.
From IRS.gov. It is based on a single filer making $58k a year.
I liked how Jade and George explained how your income is taxed. This topic is covered at about the 3:26 mark of the video. Essentially, not all of your income is taxed at the rate listed in the income bracket chart. Instead, just the portion of money within that bracket is taxed at that rate. If you are a visual person, I have included the IRS chart to help you understand.
Tax Resources
Ramsey Solutions offers free tax resources. It has a beginner’s guide to taxes. It also has the tax season checklists that George refers to in the video. One is for personal taxes. The other is for self-employed taxes. Take advantage of these free resources as you want to make sure you have everything you need to file on your own or send to a tax professional to file for you.
Hopefully you found this article on tax season 2024 helpful. Now you can gather your information and documents with a little more confidence. To learn more and even start preparing for next year’s tax season, read this article. It breaks down tax credits and deductions that you might be missing as well as how to take advantage of your IRA contributions. Don’t delay. Get ready for this tax season today.