2024 Tax Guide - Tax Members Corporation

Introduction

Welcome to our comprehensive 2024 Tax Guide. This guide provides essential information about tax law changes, deductions, credits, and strategies to help you maximize your tax savings and minimize your tax liability.

            Important Note: This guide is for informational purposes only and should not replace professional tax advice. Tax laws are complex and subject to change. Consult with a qualified tax professional for personalized advice.
        

2024-2025 Tax Law Changes

Tax Cuts and Jobs Act Extensions

The Tax Cuts and Jobs Act provisions have been extended through 2025, providing continued tax benefits for individuals and businesses.

Key Changes for 2024

Standard Deduction: Increased for inflation
Tax Brackets: Adjusted for inflation
Child Tax Credit: Maintained at $2,000 per child
Business Deductions: Enhanced expensing provisions extended

Key Changes for 2025

Standard Deduction: Further increased for inflation
Tax Brackets: Adjusted for inflation
Child Tax Credit: Expected to remain at $2,000 per child
EITC: Increased maximum credits and income limits

H.R. 1 "One Big Beautiful Bill" Provisions

Enhanced Child Tax Credit: Proposed increase to $2,500 per child for 2025
Refundable Credit: Proposed increase to $2,200 per child
Tax Cuts Extension: Extends Tax Cuts and Jobs Act provisions through 2025
Business Benefits: Maintains QBI deduction and business expensing provisions

2024-2025 Tax Brackets

2024 Single Filers

Tax Rate	Income Range
10%	$0 - $11,600
12%	$11,601 - $47,150
22%	$47,151 - $100,525
24%	$100,526 - $191,950
32%	$191,951 - $243,725
35%	$243,726 - $609,350
37%	$609,351+

2025 Single Filers

Tax Rate	Income Range
10%	$0 - $12,000
12%	$12,001 - $48,750
22%	$48,751 - $104,000
24%	$104,001 - $198,500
32%	$198,501 - $252,000
35%	$252,001 - $630,000
37%	$630,001+

2024 Married Filing Jointly

Tax Rate	Income Range
10%	$0 - $23,200
12%	$23,201 - $94,300
22%	$94,301 - $201,050
24%	$201,051 - $383,900
32%	$383,901 - $487,450
35%	$487,451 - $731,200
37%	$731,201+

2025 Married Filing Jointly

Tax Rate	Income Range
10%	$0 - $24,000
12%	$24,001 - $97,500
22%	$97,501 - $208,000
24%	$208,001 - $397,000
32%	$397,001 - $504,000
35%	$504,001 - $756,000
37%	$756,001+

Standard Deductions

Filing Status	2024 Amount	2025 Amount
Single	$14,600	$15,100
Married Filing Jointly	$29,200	$30,200
Head of Household	$21,900	$22,650
Married Filing Separately	$14,600	$15,100

Key Tax Credits

Child Tax Credit

Amount: $2,000 per qualifying child (2024-2025)
Refundable: Up to $1,700 per child (2024-2025)
Phase-out: Begins at $200,000 (single) / $400,000 (married)

Earned Income Tax Credit (EITC)

Maximum Credit (2024): $632 (0 children), $4,213 (1 child), $6,984 (2 children), $7,830 (3+ children)
Maximum Credit (2025): $650 (0 children), $4,340 (1 child), $7,180 (2 children), $8,050 (3+ children)
Income Limits: Varies by filing status and number of children
Fully Refundable: Yes

American Opportunity Tax Credit

Amount: Up to $2,500 per student
Coverage: First 4 years of higher education
Income Limits: $90,000 (single) / $180,000 (married)

Business Tax Benefits

Qualified Business Income (QBI) Deduction

Rate: 20% of qualified business income
Eligibility: Pass-through business owners
Limitations: Based on income and business type

Section 179 Expensing

Limit: $1,160,000 for 2024
Coverage: Equipment, machinery, software
Phase-out: Begins at $2,890,000

Bonus Depreciation

Rate: 80% for 2024 (declining annually)
Coverage: New and used property
Eligibility: Most business property

Common Deductions

Itemized Deductions

State and local taxes (SALT) - Limited to $10,000
Mortgage interest
Charitable contributions
Medical expenses (over 7.5% of AGI)
Casualty and theft losses
Gambling losses (up to gambling winnings)

Above-the-Line Deductions

Traditional IRA contributions
Health Savings Account (HSA) contributions
Student loan interest
Alimony payments (for pre-2019 agreements)
Self-employed health insurance
Self-employed retirement plan contributions

Retirement Planning

Contribution Limits for 2024

Account Type	Contribution Limit	Catch-up (50+)
401(k)	$23,000	$7,500
Traditional IRA	$7,000	$1,000
Roth IRA	$7,000	$1,000
SEP IRA	$69,000	N/A
Solo 401(k)	$69,000	$7,500

Tax Planning Strategies

For Individuals

Maximize retirement contributions
Consider tax-loss harvesting
Bunch itemized deductions
Optimize timing of income and expenses
Review filing status options

For Business Owners

Maximize QBI deduction
Accelerate or defer income/expenses
Consider entity structure
Plan equipment purchases
Optimize retirement plan contributions

Important Deadlines

Date	Deadline
January 15, 2024	4th Quarter 2023 Estimated Tax Payment
April 15, 2024	2023 Tax Return Due
April 15, 2024	1st Quarter 2024 Estimated Tax Payment
June 17, 2024	2nd Quarter 2024 Estimated Tax Payment
September 16, 2024	3rd Quarter 2024 Estimated Tax Payment
January 15, 2025	4th Quarter 2024 Estimated Tax Payment

Documentation Checklist

Essential Documents

W-2 forms from all employers
1099 forms (interest, dividends, self-employment)
1098 forms (mortgage interest, student loan interest)
Receipts for charitable contributions
Medical expense receipts
Business expense records
Previous year's tax return
Social Security cards for all family members

2024-2025 Tax Guide