Key Tax Figures for 2024
Happy Summer!
Tax Day for most United States taxpayers fell on Monday, April 15th, 2024, excluding those who have filed an extension or certain areas of the country which were affected by natural disasters. With Tax Day in the rear-view mirror, let’s plan for 2024. Each year, adjustments are made by the IRS to account for the effects of inflation. These adjustments for the 2024 tax year are listed below:
Standard Deduction1:
- Single taxpayers: $14,600
- Married filing jointly: $29,200
- Heads of households: $21,900
- Married filing separately: $14,600
Marginal Income Tax Rates1:
- Single taxpayers
- 12% for incomes over $11,600
- 22% for incomes over $47,150
- 24% for incomes over $100,525
- 32% for incomes over $191,950
- 35% for incomes over $243,725
- 37% for incomes over $609,350
- Married filing jointly
- 12% for incomes over $23,200
- 22% for incomes over $94,300
- 24% for incomes over $201,050
- 32% for incomes over $383,900
- 35% for incomes over $487,450
- 37% for incomes over $731,200
Capital Gain Tax Rates²:
- Short Term (holding period less than 1 year): Marginal Income Tax Rate
- Long Term (holding period 1 year or more):
- Single taxpayers with taxable income of $0 – $47,025 (Married filing jointly with taxable income: $0 – 94,050) 0% Long term rate
- Single taxpayers with taxable income of $47,026 – $518,900 (Married filing jointly with taxable income: $94,051 – $583,750) 15% Long term rate
- Single taxpayers with taxable income over $518,900 (Married filing jointly with taxable income over $583,750) 20% Long term rate
IRA and Roth IRA Contribution Limits² (100% of taxable compensation up to the limits below):
- Under Age 50 – $7,000
- Age 50 and older – $8,000
Roth IRA Phaseout²
- Single: $146,000 – $161,000
- Married filing jointly: $230,000 – $240,000
401(k), 403(b), 457, SARSEPs, and SIMPLE-IRA Contribution Limits² (Lesser of 100% of your salary or limits below):
- 401(k), 403(b), 457, and SARSEPs – $23,000
- Age 50 or older catch-up contributions for 401(k), 403(b), 457, and SARSEPs – $7,500
- SIMPLE-IRA – $17,600 (for companies with 25 employees or less)
- Age 50 or older catch-up contributions for SIMPLE IRA – $3,850 (for companies with 25 employees or less)
- SIMPLE-IRA – $16,000 (for companies with more than 25 employees)
- Age 50 or older catch-up contributions for SIMPLE IRA – $3,500 (for companies with more than 25 employees)
Annual Gift Tax Exclusion1:
- $18,000
Lifetime Estate and Gift Tax Exclusion1:
- $13,610,000
This list is not meant to be exhaustive, so please feel free to reach out to us if you have any questions regarding how these adjustments may affect your financial situation. The Normandy Group strives to work in a collaborative environment with your CPAs and tax professionals. One of the core elements within our Dynamic Wealth Design is tax planning. Our goal is to be as efficient as possible when it pertains to income, capital gain, gift, and estate taxes, and we find that working with a team of professionals may give the best potential for successful outcomes.
The CERTIFIED FINANCIAL PLANNER™ professionals and Certified Estate Planners™ at The Normandy Group offer serious financial insights for today’s complex world. By combining investment, tax, risk transference techniques and estate planning strategies we can help you to provide clarity regarding your goals. Contact us today for a complimentary consultation.
Best regards,
Charley
(1) https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024
Download our free eBook “6 Simple Steps to a More Confident Retirement”:
