Honu Wealth Management Garth A Williams, MBA, CFP® Financial Advisor 1307 S Mary Ave, Suite 101 Sunnyvale, CA 94087 650-917-3400 garth@honuwealth.com www.HonuWealth.com
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2024 Key Numbers
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| | Individual Income Tax Planning
Adoption credit
Adoption credit | 2023 | 2024 |
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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 |
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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 |
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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 |
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All taxpayers except married filing separately | $220,700 | $232,600 | Married filing separately | $110,350 | $116,300 |
Charitable deductions
Use of auto | 2023 | 2024 |
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Deductible standard mileage rate | $0.14 | $0.14 |
Charitable fundraising "insubstantial benefit"
limitation | 2023 | 2024 |
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Low-cost article (re: unrelated business income) | $12.50 | $13.20 |
Gifts to donor in return for contribution | 2023 | 2024 |
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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 |
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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 |
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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 |
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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 |
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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 |
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Excessive investment income limit ("disqualified income
limit") | $11,000 | $11,600 |
Maximum amount of EITC per number of children | 2023 | 2024 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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Exclusion amount | $120,000 | $126,500 |
Itemized deductions
Phaseout threshold | 2023 | 2024 |
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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 |
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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 |
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Additional Medicare payroll tax (and self-employment tax)
percentage rate | 0.90% | 0.90% |
Applies to wages/self-employment income exceeding | 2023 | 2024 |
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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 |
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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 |
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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 |
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Personal exemption amount | N/A
| N/A
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Married filing jointly | 2023 | 2024 |
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Phaseout threshold amount | N/A
| N/A
| Completed phaseout amount after | N/A
| N/A
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Head of household | 2023 | 2024 |
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Phaseout threshold amount | N/A
| N/A
| Completed phaseout amount after | N/A
| N/A
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Unmarried | 2023 | 2024 |
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Phaseout threshold amount | N/A
| N/A
| Completed phaseout amount after | N/A
| N/A
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Married filing separately | 2023 | 2024 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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This information was developed by Forefield, Inc. an independent third party. It is general in nature, is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation to buy or sell any security. Investments and strategies mentioned may not be suitable for all investors. Past performance may not be indicative of future results.
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Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2024. |
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