What’s New for 2024 (filed in 2025)?
Standard Deduction Increase
:: $14,600 for Single Filers
:: $29,200 for Married Filing Joint Filers
:: $21,900 for Head of Household Filers
Additional standard deduction of $1,950 for unmarried over 65 or blind. Additional $1,550 per taxpayer for married elderly or blind.
Exemptions Still Suspended
Personal and dependent exemption deduction is still suspended since 2018. For tax year 2024, it remains at zero.
Child/Dependent Tax Credit remains the same
$2,000 tax credit per child for ages 16 and under. $500 tax credit for children 17-23 (if full time student). Up to $500 tax credit for other dependents, if qualifying. The total of both credits is subject to a phase out of $50 for each $1,000 over adjusted gross income of $200,000, or $400,000 if married filing jointly.
Child & Dependent Care Credit (Daycare credit) remains the same
Eligible expenses are $3,000 for one child, $6,000 max. Credit is 20-35% depending on income. Dependent care flex spending was $5,000 for 2024.
Tax Rates Adjusted for Inflation
The 2024 tax rates remain at 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
| 2024 Tax Brackets | ||||
| Tax Rate | Single | Married filing joint |
Married filing separate |
Head of household |
| 10% | $0 to $11,600. | $0 to $23,200. | $0 to $11,600. | $0 to $16,550. |
| 12% | $11,601 to $47,150. | $23,201 to $94,300. | $11,601 to $47,150. | $16,551 to $63,100. |
| 22% | $47,151 to $100,525. | $94,301 to $201,050. | $47,151 to $100,525. | $63,101 to $100,500. |
| 24% | $100,526 to $191,950. | $201,051 to $383,900. | $100,526 to $191,950. | $100,501 to $191,950. |
| 32% | $191,951 to $243,725. | $383,901 to $487,450. | $191,951 to $243,725. | $191,951 to $243,700. |
| 35% | $243,726 to $609,350. | $487,451 to $731,200. | $243,726 to $365,600. | $243,701 to $609,350. |
| 37% | $609,351 or more. | $731,201 or more. | $365,601 or more. | $609,351 or more. |
Threshold for medical and dental expenses made permanent
You can deduct certain unreimbursed medical expenses that exceed 7.5% of your 2024 adjusted gross income. Medical mileage rate for 2024 is $.21/mile. You can also deduct up to $5,430 in premiums paid for long term care insurance.
Deduction for state/local income, sales and property taxes modified
Since 2018, your total deduction for state and local income, sales and property taxes is limited to a combined, total deduction of $10,000 ($5,000 if Married Filing Separate). Any state and local taxes you paid above this amount cannot be deducted. CA allows full deduction for real and personal property taxes.
Miscellaneous itemized “employee expense” deductions still suspended
The previous deduction for job-related expenses or other miscellaneous itemized deductions that exceeded 2 percent of your adjusted gross income is suspended from 2018-2025. This includes unreimbursed employee expenses such as uniforms, union dues and the deduction for business-related meals, entertainment and travel, as well as any deductions you may have previously been able to claim for tax preparation fees and investment expenses, including investment management fees, safe deposit box fees and investment expenses from pass-through entities. No longer deductible. We can however deduct such expenses on your California return, if the expenses exceed 2% of your income.
2024 Mileage Rates
Business – 67 cents per mile (was 65.5 cents in 2023)
Medical or Military Moving – 21 cents per mile (was 22 cents in 2023)
Charitable – 14 cents per mile (same)
2024 Retirement Contribution Limits
401(k), 403(b), 457 plan – $23,000 ($30,000 if 50+)
SEP IRA – 25% of net SE income after SE tax deduction up to a max of $69,000
SIMPLE IRA – $16,000 ($19,500 if 50+)
Traditional or Roth IRA – $7,000 ($8,000 if 50+)
(if taxpayer is not an active participant in an employer sponsored retirement plan)
Additional .9% Medicare Tax for wages in excess of:
Single, HOH, QW $200,000
Married Filing Joint $250,000
Married Filing Separate $125,000
3.8% Net Investment Income Tax on the lesser of:
(1) net investment income or
(2) excess of modified adjusted gross income over the threshold amount:
Single, HOH, QW $200,000
Married Filing Joint $250,000
Married Filing Separate $125,000
Earned Income Credit (Max)
No children $632, 1 child $4,213, 2 children $6,960, 3 or more children $7,830
Income must be less than:
3+ children: $59,899 for single workers and $66,819 for married workers.
2 children: $55,768 for single workers and $62,688 for married workers.
1 child: $49,084 for single workers and $56,004 for married workers.
No children: $18,591 for single workers and $25,511 for married workers.
Deduction for Qualified Businesses – due to expire in 2025
Since 2018, taxpayers other than corporations may be entitled to a deduction of up to 20% of their qualified business income from a qualified trade or business under the Tax Cuts and Jobs Act. This deduction can be taken in addition to the standard or itemized deductions. The deduction is subject to multiple limitations based on the type of trade or business, the taxpayer’s taxable income, the amount of W-2 wages paid with respect to the qualified trade or business, and the unadjusted basis of qualified property held by the trade or business. There are income limitations.
Info is just for convenient reference, you should reference the IRS website for complete tax laws. irs.gov