As we near the 2024 tax season, there are a lot of things to remind yourself of and things to look into as you get set up to pay your taxes. The ins and outs of tax payments, credits, and breaks can be overwhelming, but with the right information, it can be a bit easier to navigate. Here are some things to keep in mind:
When it comes to paying taxes in 2024 through the use of Intuit Accountants software, you’ll need to make sure you have the right forms ready before you go to file your taxes. As a self-employed individual, you may still be waiting on 1099s from your freelance work.
It’s important to start collecting the forms you need well in advance so that you’re ready to go when it’s time to submit everything. It’s not the best idea to skip out on including all of your 1099 forms from the contracted work that you do.
So, as you sit down and take a look at tax payments, comb through information regarding tax brackets in 2024. Remind yourself of how it works. You may be single and have an income of over $11,000. You’re likely going to be looking at marginal tax rates of around 10%. Let’s say that you’re filing in a joint married tax bracket with an income of over $89,500. You’ll be looking at 22% tax rates. Keep in mind that, with inflation, we may be looking at an increase in various bracket amounts.
As we think about paying taxes, we obviously want to try to save money wherever we can. Whether you’re filing as a single, self-employed individual or you’re filing as the head of household with a full-time career, there are savings to be found as a professional taxpayer.
The standard deduction in 2024 has increased as we’ve faced some intense inflation recently. You may want to accept the standard deduction that is offered to you while filing taxes, but in some cases, it’s wise to itemize your deductions if you have the receipts to show for them.
Another way to save money while filing your tax return is to make sure you’re taking full advantage of any tax breaks and credits that pertain to your personal situation. There are tax credits for parents, and there are tax credits for education. You’ll find tax breaks for owning an electric vehicle or options like an EITC.
Of course, this isn’t always the easiest thing to understand, so if you’re a bit confused about where you could be saving some money when filing taxes this year, consider working with a tax accountant to help you out. They may charge a fee for their help, but if it could save you thousands, it’s worth it.
From your IRA to your 401(k), you can now add more money to your accounts in 2024. This is because inflation has everything rising, so it only makes sense that you can now add a bit more to your retirement plans and accounts. Whether you have a Roth IRA or you have a 401(k), look up the increase in contributions in 2024, especially if you’re over 50 years old.
While you can find the information that you need to make all the right choices for the 2024 tax season, don’t be afraid to ask a professional to help you out if it means getting it perfect. It’s your hard-earned money that we’re talking about—save where you can!
For a successful tax experience in 2024, educate yourself on what to expect this year. From increased tax brackets to potentially higher deductions, saving money while filing is possible with a little bit of research, whether on your own or with a professional.
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