Here’s a summary:

  1. Income Tax Brackets and Standard Deductions
  • Income Tax Brackets:
    • The 37% top tax rate now applies to:
      • Incomes above $609,350 for singles.
      • Incomes above $731,200 for married couples filing jointly.
  • Standard Deductions:
    • Singles: $14,600.
    • Married couples filing jointly: $29,200.
    • Heads of households: $21,900.
  1. Contribution Limits and Credits
  • 401(k) Contribution Limit:
    • Increased to $23,500 for 2025.
  • Earned Income Tax Credit (EITC):
    • Maximum increased to $7,830 for larger families.
  • Child Tax Credit (CTC):
    • Refundable portion raised to $1,700.
  1. Disaster Relief Extensions

The IRS has extended filing and payment deadlines to May 1, 2025, for taxpayers in areas affected by recent disasters, including Tropical Storm Helene.

  • Affected Areas:
    • Entire states: Alabama, Georgia, North Carolina, South Carolina.
    • Parts of: Florida, Tennessee, and Virginia.
  • Extensions Cover:
    • Individual and business returns due from late 2024 to early 2025.
    • Quarterly Estimated Tax Payments: Originally due in January and April 2025.
    • Payroll and Excise Tax Returns: Due at the end of October 2024, January 2025, and April 2025.
    • Extended 2023 returns originally due October 15, 2024.
  1. Standard Mileage Rates
  • Beginning on January 1, 2024, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) are:
    • 67 cents per mile driven for business use.
  1. Capital Gains Tax Threshold
  • For the 2024 tax year, individual tax filers will not have to pay any capital gains tax if their total taxable income is $47,025 or less.
    • This is an increase from the income threshold of $44,625 in 2023.
  1. Required Minimum Distributions (RMDs)
  • The IRS reminds individuals aged 73 and older of the deadline to take required minimum distributions from individual retirement arrangements (IRAs) and other retirement plans, highlighting updates introduced by the SECURE 2.0 Act.

These updates reflect the IRS’s ongoing efforts to accommodate inflation adjustments and provide relief for disaster-impacted taxpayers. For more detailed information, you can visit the IRS