The Internal Revenue Service (IRS) began to officially accept and process tax returns on January 29, 2024. Therefore, as the April 15 deadline approaches, it’s an excellent time to take stock of your annual returns and determine if there are any opportunities to save money and time.
Tax planning and preparation is a continual initiative. Additionally, the tax planning process should start well before the start of a new year.
Every year brings a new round of changes to tax laws, brackets, deductions, forms, and credits. These adjustments can be confusing, even to the most seasoned tax filer. The IRS has 2,888 different tax forms and publications related to the 2023 tax season. Therefore, sifting through all this information and all these forms to determine which are required can be a daunting task.
The best tip for preparing and submitting your taxes (while putting the most amount of money back into your pocket as possible) is to partner with a tax professional. At Saddock Advisory, we provide expert tax planning for individuals, tax planning for businesses, and a host of other services that can benefit your bottom line all year long.
Key Tips to Start Your Tax Planning for 2024
The IRS Online Portal Has Been Enhanced for 2024
The IRS has a wealth of valuable resources online for taxpayers, starting with its online portal. It allows individuals to log in, view what they owe, make payments, and keep track of deadlines.
In addition, taxpayers with an Individual Taxpayer Identification Number (ITIN) can make payments and request transcripts if needed. As such, the IRS website is progressively becoming a solid resource for accessing general and more personalized information online.
The Form 1099-K $600 Reporting Rule Has Been Delayed
In late November 2023, following feedback from taxpayers, tax professionals, and payment processors (and to reduce taxpayer confusion), the IRS announced a delay of the new $600 Form 1099-K reporting threshold for third party settlement organizations for 2023. Before this announcement, the IRS anticipated that roughly 44 million 1099-Ks would be sent to individuals with more than $600 in business transactions via apps like PayPal or Venmo. Instead, reporting will not be required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023.
There’s a Higher Standard Deduction for the 2024 Tax Season
Taxpayers can take the standard deduction or an itemized deduction, and for tax year 2023. Additionally, the standard deduction increased to account for inflation. This number will also go up in 2024.
- Single tax filers: the standard deduction is $12,950 for the tax year 2023 and $13,500 for the tax year 2024
- Married filing or jointly tax filers: the standard deduction is $25,900 for the tax year 2023, and $27,700 for the 2024 tax year
- Head of Household tax filers: the standard deduction is $19,400 for the tax year 2023 and $20,800 for the tax year 2024
In addition, tax brackets are also increasing for tax years 2023 as well as the upcoming tax year 2024. As such, it’s a great time to consider deferring or accelerating income. Especially if you expect to be on the border of a lower or higher bracket by the end of the year.
Additional Inflation-adjustments
Inflation has had a significant impact on a wide range of credits, deductions, and other areas of federal taxes. Additionally, in November 2023, the IRS announced inflation adjustments for more than 60 tax provisions for tax year 2024, including the tax rate schedules and other tax changes.
As such, it’s a good time to take stock of these many changes and see how your deductions, credits, and overall net income may be impacted in the weeks (and years) ahead.
Tax Planning Services with Saddock Advisory
At Saddock Advisory, we go beyond just helping you file your current year’s taxes; we empower you to plan and prepare for your 2024 tax return with strategic foresight. Partnering with our tax planning services means you’re not just complying with tax requirements but proactively managing them to your advantage.
Our team of tax professionals is dedicated to devising strategies that minimize your tax liabilities and enhance your financial opportunities. By contacting Saddock Advisory today, you ensure that your tax situation is handled with proper care and expertise.
Don’t navigate the complexities of tax planning and preparation alone. Let Saddock Advisory be your partner in securing a more prosperous financial future.
