WHAT’S NEW FOR IRS FORM 1040 IN 2024

Stay updated on the latest changes to IRS Form 1040 for the current tax year.

As we dive into the 2024 tax season, it’s essential to stay informed about any changes to IRS Form 1040. This year, there are several updates that taxpayers in Greensboro, NC, Raleigh, NC, and across the country need to be aware of. Let’s take a closer look at what’s new for IRS Form 1040 in 2024:

1. Expanded Child Tax Credit: The Child Tax Credit has been expanded for the 2024 tax year, allowing eligible families to receive up to $3,000 per child under the age of 18 and $3,600 per child under the age of 6.
2. Recovery Rebate Credit: If you did not receive the full amount of the Economic Impact Payments (stimulus checks) you were eligible for, you may be able to claim the remaining amount as a Recovery Rebate Credit on your 2024 tax return.
3. Standard Deduction Increase: The standard deduction for 2024 has been adjusted for inflation. For single filers and married individuals filing separately, the standard deduction is now $12,950. For married couples filing jointly, it is $25,900, and for heads of household, it is $19,400.
4. IRA Contribution Limits: The contribution limit for traditional and Roth IRAs has increased to $7,000 for taxpayers under the age of 50 and $8,000 for those aged 50 and over.
5. Health Savings Account (HSA) Contribution Limits: The maximum HSA contribution limit for individuals with self-only coverage is $3,050, and for those with family coverage, it is $6,100.
6. Earned Income Tax Credit (EITC) Changes: The maximum EITC amount has increased for the 2024 tax year, and the income limits have been adjusted. Taxpayers with three or more qualifying children can now claim a maximum credit of $6,935.
7. New Schedule L: Taxpayers who claim the standard deduction but have certain deductions that are limited or not allowed on the standard deduction may need to complete Schedule L and attach it to their Form 1040.

It’s important to stay up-to-date with these changes to ensure that you’re taking full advantage of all available tax benefits and credits. If you have any questions or need assistance with your tax return in Greensboro, NC, Raleigh, NC, or the surrounding areas, don’t hesitate to reach out to NC CPA PLLC. We’re here to help you navigate the ever-changing landscape of tax law and ensure that you’re in compliance with all IRS requirements.