So that your 2024 tax return doesn’t give you stress, here are some new ideas that will help. Stay calm, it’s not that hard as long as you don’t make the same mistakes that make us all sweat. Are you ready to learn?
The first important rule is to take your time. Make sure you have all of your tax forms (W-2, 1099, income records, etc.) before you send your return. It’s time to fix anything wrong or missing. A mistake in where you put something can cause your return to be delayed or even get you in trouble with the IRS. It’s better to be safe than sorry!
Credits that help you the most (and some other important changes)
Are you aware that there are changes this year that might allow you to save more money? In this case, the ACTC went up to $1,700 for each child who qualified. You can now claim it with just one child if you live in Puerto Rico. You used to need three or more. Make the most of it!
The Child Tax Credit (CTC) is still a good deal at $2,000 per child. But be careful, it goes down if you make more than $200,000 a year (or $400,000 a year if you file as a couple). Also, your child must be younger than 17 and meet other conditions. Do you have doubts? See what the rules are on the IRS Site.
As usual, the reduction means more cash in your pocket.
In 2018, the standard deduction went up, which is a clear gain. Check out the new numbers:
- Single or married filing separately: $14,600.
- Head of household: $21,900.
- Married filing jointly: $29,200.
When you use these numbers, you’ll feel like a pro. An important change has been made to the EITC: if you don’t have children, you must be between the ages of 25 and 65 to receive it.
Plus, you can’t miss these great points.
Adopting a child is a happy event, and the tax system helps with some of the big costs that come with it. If you decided to adopt a child in 2024, you might be able to get the Adoption Credit. With the highest credit of up to $16,810 per adopted child, this credit can help a lot with money issues.
Because of the push for cleaner transportation, people who buy certain types of electric or hybrid cars can get tax credits. If you bought an electric car, plug-in hybrid, or used electric car in 2024, you may be able to get a credit Review Form 8936. You may also be able to get a nice loan.
Save for retirement: The maximum amount you can put into an IRA has gone up for the 2024 tax year. The most you can put into an IRA has gone up to $7,000 (or $8,000 if you’re 50 or older).
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