Kirr, Marbach’s Tax Guide: 7 Things to Know Now
With Tax Day quickly approaching, we’ve compiled seven things to keep in mind as your prepare for 2023 taxes and beyond.
1. Income tax brackets shifted slightly. Federal income tax rates are tied to tax brackets that change yearly for inflation. The good news is tax brackets are more favorable this year than last due to inflation adjustments. Read more.
2. IRA contribution limits have increased. Your deadline for 2023 contributions is Tax Day. Traditional IRA and Roth contributions limits in 2023 increased slightly from 2022, but keep in mind there’s income limits for IRA deductibility and Roth eligibility. Read more.
3. HSA contribution limits have also increased. If you’re enrolled in a high-deductible health plan, you can contribute to a Health Savings Account and use it as an above the line deduction. Read more.
4. There’s some changes to deduction and credits for tax year 2023. The standard deduction has increased and there’s changes to some tax credits, specifically as it relates to the child tax credit. Read more.
Some additional insights to assist in tax planning:
5. Several provisions from the SECURE 2.0 Act go into effect in 2024. The SECURE 2.0 Act was a significant piece of legislation aimed to encourage more workers to save for retirement, but some of the complex changes can be confusing. Read some key points for 2024 here.
6. More people are paying tax on their Social Security benefit. And it was designed to be that way. Find out how to calculate if your benefit may be subject to tax.
7. You might owe taxes on your mutual fund holdings despite not having sold a single share. Find out why here.
Don’t forget to check out our 2024 Personal Finance at a Glance for some 2024 tax year facts!
Check with your financial professional for updates. Information contained herein is current as of 2/28/2024. It is subject to legislative changes and is not intended to be legal or tax advice. Consult a qualified tax advisor regarding specific circumstances. This material is furnished “as is” without warranty of any kind. Its accuracy and completeness is not guaranteed and all warranties expressed or implied are hereby excluded.
