Key Filing Updates and Deadlines:
The deadline for submitting Form 1040 or 1040-SR for the 2024 tax year is Tuesday, April 15.
Changes to Tax Credits and Deductions
Additional Child Tax Credit (ACTC) The maximum ACTC amount has increased to $1,700 per qualifying child.
Standard Deduction Adjustments- For tax year 2024, the standard deduction has increased to:
$14,600 for single filers or married filing separately.
$21,900 for heads of household.
$29,200 for married couples filing jointly
Child Tax Credit (CTC)- The CTC remains at $2,000 per qualifying child. The phase-out begins at $200,000 adjusted gross income (AGI) for single filers and $400,000 for joint filers. A qualifying child must be under age 17 at the end of 2024.
Earned Income Tax Credit (EITC)- Taxpayers without a qualifying child must be at least 25 but under 65 years old at the end of 2024 to claim the EITC.
Adoption Credit- The maximum adoption credit is now $16,810 per eligible child. The credit phases out for taxpayers with a modified AGI exceeding $252,150 and is fully phased out at $292,150.
Clean Vehicle Credit- Available for new and previously owned electric vehicles. Must be claimed using Form 8936, Clean Vehicle Credit.
IRA Contribution Limits Increased- The IRA contribution limit has increased to $7,000 ($8,000 for individuals aged 50 or older).
Visit IRS.gov for more information.
