| | | | | Individual Income Tax Planning
Adoption credit
Adoption credit | 2023 | 2024 |
---|
Maximum credit | $15,950 | $16,810 | Phaseout threshold amount | $239,230 | $252,150 | Completed phaseout amount after | $279,230 | $292,150 |
Alternative Minimum Tax (AMT)
Maximum AMT exemption amount | 2023 | 2024 |
---|
Married filing jointly or surviving spouse | $126,500 | $133,300 | Single or head of household | $81,300 | $85,700 | Married filing separately | $63,250 | $66,650 |
AMT income exemption phaseout threshold | 2023 | 2024 |
---|
Married filing jointly or surviving spouse | $1,156,300 | $1,218,700 | Single or head of household | $578,150 | $609,350 | Married filing separately | $578,150 | $609,350 |
AMT tax rate (26% rate applies to AMTI at or below amount;
28% applies to AMTI above amount) | 2023 | 2024 |
---|
All taxpayers except married filing separately | $220,700 | $232,600 | Married filing separately | $110,350 | $116,300 |
Charitable deductions
Use of auto | 2023 | 2024 |
---|
Deductible standard mileage rate | $0.14 | $0.14 |
Charitable fundraising "insubstantial benefit"
limitation | 2023 | 2024 |
---|
Low-cost article (re: unrelated business income) | $12.50 | $13.20 |
Gifts to donor in return for contribution | 2023 | 2024 |
---|
Token gift maximum cost1 | $12.50 | $13.20 | Minimum contribution amount1 | $62.50 | $66.00 | 2% threshold amount2 | $125 | $132 |
1 Contribution is fully deductible if minimum
contribution amount is met and cost of token gift does not exceed maximum
2 Charitable contribution is fully deductible
if the benefit received by the donor doesn't exceed the lesser of the threshold
amount or 2% of the amount of the contribution
Child tax credit
Amount of credit | 2023 | 2024 |
---|
Maximum credit per qualifying child | $2,000 | $2,000 | Nonrefundable credit for dependents
who are not qualifying children | $500 | $500 |
Phaseout -- credit reduced by $50 for each $1,000 or fraction
thereof of MAGI over (but not to be reduced below $2,000): | 2023 | 2024 |
---|
Married filing jointly or surviving spouse | N/A | N/A | Head of household | N/A | N/A | Single or married filing separately | N/A | N/A |
Phaseout -- any remaining credit reduced by $50 for each $1,000 or fraction
thereof of MAGI over: | 2023 | 2024 |
---|
Married filing jointly | $400,000 | $400,000 | All other filing status | $200,000 | $200,000 |
Refundability -- up to specified percentage of earned income
in excess of specified amount | 2023 | 2024 |
---|
Percentage | 15% | 15% | Amount | $2,500 | $2,500 | Maximum refundable amount of
credit | $1,600 | $1,700 |
Classroom expenses of elementary and secondary school
teachers
Classroom expense deduction | 2023 | 2024 |
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Maximum above-the-line deduction | $300 | $300 |
Earned income tax credit (EITC)
Investment income limit | 2023 | 2024 |
---|
Excessive investment income limit ("disqualified income
limit") | $11,000 | $11,600 |
Maximum amount of EITC per number of children | 2023 | 2024 |
---|
0 children | $600 | $632 | 1 child | $3,995 | $4,213 | 2 children | $6,604 | $6,960 | 3 or more children | $7,730 | $7,830 |
Maximum amount of earned income on which EITC is based
(earned income over this amount but under the threshold phaseout amount will
not change the amount of the credit received) | 2023 | 2024 |
---|
0 children | $7,840 | $8,260 | 1 child | $11,750 | $12,390 | 2 or more children | $16,510 | $17,400 |
Threshold phaseout amount for joint filers per number of
children | 2023 | 2024 |
---|
0 children | $16,370 | $17,250 | 1 child | $28,120 | $29,640 | 2 children | $28,120 | $29,640 | 3 or more children | $28,120 | $29,640 |
Threshold phaseout amount for other filers per number of
children | 2023 | 2024 |
---|
0 children | $9,800 | $10,330 | 1 child | $21,560 | $22,720 | 2 children | $21,560 | $22,720 | 3 or more children | $21,560 | $22,720 |
Completed phaseout amount for joint filers per number of
children | 2023 | 2024 |
---|
0 children | 24,210 | $25,511 | 1 child | $53,120 | $56,004 | 2 children | $59,478 | $62,688 | 3 or more children | $63,398 | $66,819 |
Completed phaseout amount for other filers per number of
children | 2023 | 2024 |
---|
0 children | $17,640 | $18,591 | 1 child | $46,560 | $49,084 | 2 children | $52,918 | $55,768 | 3 or more children | $56,838 | $59,899 |
Expatriation
Covered expatriate | 2023 | 2024 |
---|
An individual with "average annual net income tax" of more
than this amount for the five taxable years ending before his or her loss of
citizenship is a covered expatriate for the purposes of IRC §877A(g)(1) | $190,000 | $201,000 | IRC §877A(3) exclusion amount | $821,000 | $866,000 |
Foreign earned income
Amount excluded from income | 2023 | 2024 |
---|
Exclusion amount | $120,000 | $126,500 |
Itemized deductions
Phaseout threshold | 2023 | 2024 |
---|
Married filing jointly | N/A | N/A | Head of household | N/A | N/A | Unmarried | N/A | N/A | Married filing separately | N/A | N/A |
Kiddie tax
Unearned income limit | 2023 | 2024 |
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Amount exempt from tax | $1,250 | $1,300 | Additional amount taxed at child's rate | $1,250 | $1,300 | Unearned income over this amount generally taxed at parents' tax rates | $2,500 | $2,600 |
Parent's election | 2023 | 2024 |
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Election to include child's income on parent's return --
child's gross income requirement | $1,250 - $12,500 | $1,300 - $13,000 |
AMT | 2023 | 2024 |
---|
AMT exemption for child subject to kiddie tax | Lesser of $8,800 + child's earned income or $81,300 | Lesser of $9,250 + child's earned income or $85,700 |
Medicare tax (additional payroll tax and unearned
income contribution tax)
Payroll tax | 2023 | 2024 |
---|
Additional Medicare payroll tax (and self-employment tax)
percentage rate | 0.90% | 0.90% |
Applies to wages/self-employment income exceeding | 2023 | 2024 |
---|
Individuals | $200,000 | $200,000 | Married filing jointly
| $250,000 | $250,000 | Married filing separately | $125,000 | $125,000 |
Tax on unearned income | 2023 | 2024 |
---|
Unearned income Medicare contribution tax rate | 3.80% | 3.80% |
Applies to lesser of (a) net investment income or (b)
modified adjusted gross income exceeding | 2023 | 2024 |
---|
Individuals | $200,000 | $200,000 | Married filing jointly
| $250,000 | $250,000 | Married filing separately | $125,000 | $125,000 |
Nanny tax
Compensation threshold | 2023 | 2024 |
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Domestic employee coverage threshold | $2,600 | $2,700 |
Personal exemption amount
Amount | 2023 | 2024 |
---|
Personal exemption amount | N/A
| N/A
|
Married filing jointly | 2023 | 2024 |
---|
Phaseout threshold amount | N/A
| N/A
| Completed phaseout amount after | N/A
| N/A
|
Head of household | 2023 | 2024 |
---|
Phaseout threshold amount | N/A
| N/A
| Completed phaseout amount after | N/A
| N/A
|
Unmarried | 2023 | 2024 |
---|
Phaseout threshold amount | N/A
| N/A
| Completed phaseout amount after | N/A
| N/A
|
Married filing separately | 2023 | 2024 |
---|
Phaseout threshold amount | N/A
| N/A
| Completed phaseout amount after | N/A | N/A |
"Saver's Credit"
Elective Deferrals and IRA or ABLE Contributions by Certain
Individuals | 2023 | 2024 |
---|
Maximum credit amount | $1,000 | $1,000 |
Applicable percentage of 50% applies to AGI | 2023 | 2024 |
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Joint Return | $0 - $43,500 | $0 - $46,000 | Head of Household | $0 - $32,625 | $0 - $34,500 | Other | $0 - $21,750 | $0 - $23,000 |
Applicable percentage of 20% applies to AGI | 2023 | 2024 |
---|
Joint Return | $43,501 - $47,500 | $46,001 - $50,000 | Head of Household | $32,626 - $35,625 | $34,501 - $37,500 | Other | $21,751 - $23,750 | $23,001 - $25,000 |
Applicable percentage of 10% applies to AGI | 2023 | 2024 |
---|
Joint Return | $47,501 - $73,000 | $50,001 - $76,500 | Head of Household | $35,626 - $54,750 | $37,501 - $57,375 | Other | $23,751 - $36,500 | $25,001 - $38,250 |
Applicable percentage of 0% applies to AGI | 2023 | 2024 |
---|
Joint Return | Over $73,000 | Over $76,500 | Head of Household | Over $54,750 | Over $57,375 | Other | Over $36,500 | Over $38,250 |
Standard deductions
Amounts | 2023 | 2024 |
---|
Married filing jointly or surviving spouse | $27,700 | $29,200 | Head of household | $20,800 | $21,900 | Unmarried | $13,850 | $14,600 | Married filing separately | $13,850 | $14,600 | Dependent--Standard deduction cannot exceed the greater
of: | $1,250 or $400 + earned income | $1,300 or $450 + earned income | Additional deduction for aged or blind (single or head of
household) | $1,850 | $1,950 | Additional deduction for aged or blind (all other filing
statuses) | $1,500 | $1,550 |
Standard mileage rates
Applicable rates
| 2023 | 2024 |
---|
Use of auto for business purposes (cents per mile) | $0.655 | $0.67 | Use of auto for medical purposes (cents per
mile) | $0.22 | $0.21 | Use of auto for moving purposes (cents per mile) | $0.22 | $0.21 |
| | | | IMPORTANT DISCLOSURES Philippe E Berthoud and William E. Riquier offer Securities and Advisory Services through United Planners Financial Services, Member FINRA/SIPC. United Planners and The Retirement Financial Center are independent companies. Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
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