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Navigating the 2024 Tax Season: Essential Updates and Tips for Filers

Navigating the 2024 Tax Season: Essential Updates and Tips for Filers

March 21, 2024

The 2024 tax season brings a suite of opportunities and updates that taxpayers need to be aware of. As we approach the April 15, 2024, deadline, it's crucial to be informed about the latest tax credits and deductions that could significantly affect your filings. Whether you're an employee, self-employed, a student, or a homeowner, understanding these changes can lead to substantial savings and avoid any last-minute rush.

Key Updates for the 2024 Tax Season

  1. Earned Income Tax Credit (EITC): A valuable credit for those with earned income under $63,698, offering relief ranging from $600 to $7,430, based on your family size and marital status.

  2. Child Tax Credit (CTC): Up to $2,000 per qualifying child under 17, with a significant portion refundable for families who've earned more than $2,500.

  3. Student Loan Interest Deduction: Allows borrowers to deduct up to $2,500 of paid interest, subject to income limits, directly reducing taxable income.

  4. American Opportunity Tax Credit (AOC) & Lifetime Learning Credit: These credits support education-related expenses, offering up to $2,500 for tuition, books, and supplies.

  5. Mortgage Interest Deduction: Homeowners can reduce their taxable income by the amount of mortgage interest paid, making homeownership more affordable.

  6. Saver’s Credit: Encourages retirement savings by offering a credit of 10% to 50% on contributions to IRAs and employer-sponsored retirement plans, with limits based on income and filing status.

In addition to these key points, other deductions and credits like the Educator Expenses deduction, Electric Vehicle Tax Credit, Solar Tax Credit, and deductions for self-employment expenses remain available. Consulting with a tax professional can ensure you're making the most of these opportunities and navigating the tax season with confidence.

2024 Tax Tips