Tax Law Highlights: 2024
Related Tax Information for 2024 That Could Impact You
With a new year comes change, including updates from the IRS to the standard deduction and charitable contribution limits. These changes are a not-so-subtle reminder from the IRS of the importance of incorporating a charitable-giving strategy into any wealth or tax planning for the year. Depending on what 2024 will look like for you, there may be ways to make an extraordinary impact on the causes you care about while potentially lessening your taxable liability. Below are the most notable IRS changes to the standard deduction, estate tax, and more from 2023 to 2024.
2024 Tax Bracket & Federal Income Tax Rates
2024 Standard Deductions
The standard deduction for married couples filing jointly for tax year 2024 rises to $29,200, up from $27,700 the prior year, an increase of $1,500 from tax year 2023.
For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023.
For heads of household, the standard deduction will be $21,900 for the tax year 2024, up from $20,800 for the tax year 2023, an increase of $1,100 from 2023.
Marginal Tax Rates*
For tax year 2024, the top tax rate remains 37% for individual single taxpayers with incomes greater than $609,350 (or $731,200 for married couples filing jointly). The lowest rate is 10% for single individuals with incomes of $11,600 or less ($23,200 for married couples filing jointly).
*After 12/31/2025 marginal tax rates, aside from the first two brackets (10% and 15%), will be determined differently than under the Tax Cut and Jobs Act (TCJA) and return to the pre-TCJA levels (2017). Those ranges will also be adjusted for inflation.
The alternative minimum tax (AMT) exemption amount for 2023 is $81,300 and begins to phase out at $578,150 ($126,500 for married couples filing jointly, for whom the exemption begins to phase out at $1,156,300). The 2022 exemption amount was $75,900 and began to phase out at $539,900 ($118,100 for married couples filing jointly for whom the exemption began to phase out at $1,079,800).
Alternative Minimum Tax
The Alternative Minimum Tax exemption amount for the tax year 2024 is $85,700 and begins to phase out at $609,350 ($133,300 for married couples filing jointly for whom the exemption begins to phase out at $1,218,700). For comparison, the 2023 exemption amount was $81,300 and began to phase out at $578,150 ($126,500 for married couples filing jointly for whom the exemption began to phase out at $1,156,300).
Estate Tax
Estates of decedents who pass away during 2024 have a basic exclusion amount of $13,610,000, increased from $12,920,000 for estates of decedents who passed away in 2023.
Gift Exclusion
The annual exclusion for gifts increases to $18,000 for calendar year 2024, increased from $17,000 for calendar year 2023. The charitable contribution limit for a gift of cash to a public charity or donor-advised fund remains 60% of one’s adjusted gross income (AGI), and the limit for non-cash gifts remains 30% of AGI.
Capital Gains Tax Rates and Brackets
A capital gains tax is levied on the profit made from selling an asset and is often in addition to corporate income taxes, frequently resulting in double taxation. Capital gains taxes create a bias against saving, leading to a lower level of national income by encouraging present consumption over investment.
Long-term capital gains face different brackets and rates than ordinary income.
Capital Gains Tax Brackets
Qualified Business Income Deduction
The Tax Cuts and Jobs Act of 2017 (TCJA) includes a 20% deduction for pass-through businesses. Limits on the deduction begin phasing in for taxpayers with income above $191,950 (or $383,900 for joint filers) in 2024.
2024 Qualified Business Income Deduction Thresholds
Your charitable donations are tax deductible. The ministry’s tax identification number is 95-6006173. Jesus Film Project® is a ministry of Campus Crusade for Christ International®. The ministry operates under the brand name Cru® in the United States.
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