What to Keep in Mind for Tax Season 2024

Since we’re halfway into the 2024 tax season, it's time to get organized and prepare to file your taxes. Whether it’s your first tax season, or your twentieth, here are some important things to consider as you tackle your taxes this year.

Before diving into your tax return, gather all the relevant documents you'll need to complete the process. This includes forms such as W-2s, 1099s, receipts for deductible expenses, and any other financial records pertinent to your income and expenditures throughout the year.

There are many elements that go into filing, and the more you know, the better prepared you are. Tax laws change all the time, so make sure you’re up to date on the latest tax info. A great place to start is the IRS website.

Please note the following information is not to be considered financial advice. If you have questions or concerns about your filing status, it’s best to speak to an accountant or the IRS directly.

Deadlines

For most Americans, the deadline for filing your taxes this year is April 15, 2024. You have until that date to file and pay any taxes you owe. If you cannot do that, you do have the option to file for an extension, which will give you an additional six months to complete your return. Meaning you will need to file by October 15, 2024. However, taking the extension route can result in additional fees, depending on your situation.

Your filing status—whether single, married filing jointly, married filing separately, or head of household—affects your tax rate and eligibility for certain deductions and credits. Make sure to choose the status that accurately reflects your marital and household situation.

Tax Brackets & Federal Income Rates

Your tax bracket determines what income rate you’ll be taxed by. These rates are impacted by your income and your marital status. NerdWallet provides a great breakdown of the 2023 tax brackets for the 2024 tax season you can check out to see where you fall. It’s also important to note that your state may have different income tax brackets than the federal government has.

It’s important to know your tax bracket so you are able to prepare for how much you’ll owe (if any) in taxes when you file. Knowing your income, your tax bracket, and your state tax laws are crucial to see the full picture.

Deductions and Credits

Take advantage of available deductions and credits to minimize your tax liability. Common deductions include those for mortgage interest, medical expenses, charitable contributions, and student loan interest. Similarly, various tax credits can reduce the amount of tax you owe or provide a refund, so explore your eligibility for these benefits.

One thing to also keep in mind for the 2024 tax season, is that the standard deductions have been raised due to inflation. You can read more about the specifics of those deductions here on the IRS website.

Plan for the 2025 Tax Season 

As you wrap up your tax filing for 2024, take proactive steps to prepare for next year's taxes. Consider strategies for tax-efficient investing, retirement planning, and other financial decisions that can impact your tax situation in the future.

If you're unsure about navigating the complexities of tax preparation, or are getting more headaches by the year, consider seeking professional assistance from a certified public accountant (CPA) or tax preparation service. These experts can provide guidance, ensure accuracy, and help optimize your tax outcome.

By keeping these considerations in mind and staying organized throughout the tax season, you can streamline the filing process and potentially uncover opportunities to maximize your tax savings. Remember, preparation and attention to detail are key to a successful tax filing experience in 2024 and beyond.