With the onset of a new tax season, the Federal Government releases updated individual tax deduction allowances set for 2023 and 2024,
TRAVERSE CITY, MI, US, August 24, 2023/EINPresswire.com/ — With the onset of a new tax season, the Federal Government releases updated individual tax deduction allowances set for 2023 and 2024, offering taxpayers clarity and financial reprieve.
These deductions are tailored to benefit a wide range of taxpayers, ensuring every citizen can leverage the maximum potential tax savings.
Key Highlights of Individual Tax Deductions Allowed in 2023 and 2024:
Standard Deduction: The standard deduction amounts are adjusted for inflation. Singles can claim up to $13,000, while married couples filing jointly are eligible for $26,000. Heads of households have a limit set at $19,300.
Home Mortgage Interest: Taxpayers can still deduct interest on mortgages for primary or secondary residences. The cap remains at loans up to $750,000.
State and Local Taxes (SALT): Deductions for state and local taxes, including property taxes, remain but are capped at $10,000 or $5,000 for married individuals filing separately.
Medical Expenses: Taxpayers can deduct out-of-pocket medical expenses exceeding 7.5% of their adjusted gross income.
Charitable Donations: Those who itemize can deduct contributions made to eligible organizations up to 60% of their adjusted gross income.
Educational Deductions: Student loan interest remains deductible up to $2,500. Additionally, tuition and fee deductions are available, benefiting taxpayers with education expenses.
Work-Related Expenses: Unreimbursed employee expenses are no longer universally deductible, but specific professions, like military reservists and performing artists, may still claim certain work-related expenses.
IRA Contributions: Traditional IRA contributions remain deductible, subject to certain income and coverage limitations.
Taxpayers are urged to familiarize themselves with these pivotal deductions, ensuring a smooth and maximally beneficial filing experience.
To learn more about individual tax deductions in 2023 and 2024, visit https://filemytaxesonline.org/