Your 2024 Tax Fact Sheet and Calendar
As we enter 2024, there aren’t many seismic changes scheduled, taxwise. Instead, most of the tax changes going into effect as the new year dawns amount to adjustments to income or contribution limits, reflective of the effects of inflation in various provisions within the tax code.
Here are key tax-related dates and data points to have on your radar for the year ahead.
2024 Important Tax Facts for All Taxpayers
Income Tax Brackets: Seven tax brackets remain, but the specific parameters have changed, as follows:
Standard Deduction: Standard deduction amounts are increasing by a healthy amount in 2024, to $14,600 for single filers and $29,200 for married couples filing jointly. People who are over 65 or blind can claim an additional $1,550 per person for their standard deduction ($1,950 for unmarried people over age 65).
AMT-Exempt Amounts: The exemption amounts for the Alternative Minimum Tax are increasing slightly in 2024, to $85,700 for single filers and $133,300 for married couples filing jointly. The exemption amounts phase out for single filers with alternative minimum taxable incomes of more than $609,350, and $1,218,700 for married couples filing jointly.
Estate/Gift Tax Exemption: This amount is increasing in 2024, to $13.61 million per individual. The annual gift-tax exclusion is increasing to $18,000, up from $17,000 in 2023. (Note that annual gifts in excess of this amount do not automatically trigger any sort of gift tax. Most people won’t owe estate or gift taxes in their lifetimes under current tax laws.)
2024 Important Tax Facts for Investors
Qualified Dividend and Long-Term Capital Gains Rates: Three rates are still in place for dividends and long-term capital gains—0%, 15%, and 20%. Here are the parameters for each of the rates.
0%: Single taxpayers with incomes between $0 and $47,025; married couples filing jointly with incomes between $0 and $94,050.15%: Single taxpayers with incomes between $47,026 and $518,900; married couples filing jointly with incomes between $94,051 and $583,750.20%: Single taxpayers with incomes over $518,900; married couples filing jointly with incomes over $583,750.
Medicare Surtax: As in years past, an additional 3.8% Medicare surtax will apply to the lesser of net investment income or the excess of modified adjusted gross income over $200,000 for single taxpayers and $250,000 for married couples filing jointly.
IRA Contribution Limits (Roth or Traditional): $7,000 under age 50/$8,000 age 50 and over.
Income Limits for Deductible IRA Contribution, single filers covered by a retirement plan at work: Modified adjusted gross income under $77,000—fully deductible contribution; between $77,000 and $87,000—partially deductible contribution; more than $87,000—contribution not deductible.
Income Limits for Deductible IRA Contribution, single filers who are not covered by a retirement plan at work or married couples if neither spouse is covered by a retirement plan at work: None.
Income Limits for Deductible IRA Contribution, married couples filing jointly, if contributor is covered by a retirement plan at work: Modified adjusted gross income under $123,000—fully deductible contribution; between $123,000 and $143,000—partially deductible contribution; more than $143,000—contribution not deductible.
Income Limits for Deductible IRA Contributions, married couples filing jointly, if contributor is not covered by a retirement plan at work but spouse is: Modified adjusted gross income under $230,000—fully deductible contribution; between $230,000 and $240,000—partially deductible contribution; more than $240,000—contribution not deductible.
Income Limits for Nondeductible IRA Contributions: None.
Income Limits for IRA Conversions: None.
Income Limits for Roth IRA Contribution, single filers: Modified adjusted gross income under $146,000—full Roth contribution; between $146,000 and $161,000—partial Roth contribution; more than $161,000—no Roth contribution.
Income Limits for Roth IRA Contribution, married couples filing jointly: Modified adjusted gross income under $230,000—full Roth contribution; between $230,000 and $240,000—partial Roth contribution; more than $240,000—no Roth contribution.
Contribution Limits for 401(k), 403(b), 457 plan, or Self-Employed 401(k) (Roth or Traditional): $23,000 under age 50; $30,500 for age 50 and older.
Total 401(k) Contribution Limits, including employer (pretax, Roth, aftertax) and employee contributions and forfeitures: $69,000 if under age 50; $76,500 if 50-plus.
Income Limits for 401(k), 403(b), 457 Plan: None, though annual compensation limits can come into play in certain situations.
SEP IRA Contribution Limit: The lesser of 25% of compensation or $69,000.
Saver’s Tax Credit, income limit, single filers: $38,250.
Saver’s Tax Credit, income limit, married couples filing jointly: $76,500.
Health Savings Account Contribution Limit, single coverage: $4,150 (contributor under age 55); $5,150 (contributor 55-plus).
Health Savings Account Contribution Limit, family coverage: $8,300 (contributor under age 55); $9,300,(contributor 55-plus).
High-Deductible Health Plan Minimum Deductible, self-only coverage: $1,600.
High-Deductible Health Plan Minimum Deductible, family coverage: $3,200.
High-Deductible Health Plan Out-of-Pocket Maximum, self-only coverage: $8,050.
High-Deductible Health Plan Out-of-Pocket Maximum, family coverage: $16,100.
2024: Important Tax Dates to Remember
Jan. 1: New IRA, retirement plan, and HSA contribution and income limits go into effect for the 2024 tax year, as listed above.
Jan. 16: Estimated tax payments due for the fourth quarter of 2023.
April 15:
Individual tax returns (or extension request forms) are due for the 2023 tax year.Last day to contribute to an IRA for the 2023 tax year (2023 contribution limits: $6,500 under age 50; $7,500 for age 50 and above).Last day to contribute to an HSA for the 2023 tax year (2023 contribution limits: $3,850 for single coverage, contributor under age 55; $4,850 for single coverage, contributor age 55 and above; $7,750 for family coverage, contributor under age 55; $8,750 for family coverage, contributor age 55 and above).
June 17: Estimated tax payments due for the second quarter of 2024.
Sept. 16: Estimated tax payments due for the third quarter of 2024.
Oct. 15: Individual tax returns due for taxpayers who received a six-month extension on their 2023 returns.
Dec. 31:
Retirees age 73 and older must take required minimum distributions from traditional IRAs and 401(k)s; those RMDs are based on their balances at the end of 2023.Last date to make contributions to company retirement plans (401(k), 403(b), 457) for the 2024 tax year.
This is the 2024 edition of an annual article, and it was previously published on Feb. 3, 2023.
