What to Expect for the 2024 Tax Season
Disclaimer: This material is prepared for informational purposes only and is not tax advice. Please speak with a tax professional or view the resources linked in the article to see how this information may apply to you.
Happy New Year! With a new year comes new deadlines and changes. In this blog post, we’ll give you an overview of important tax deadlines, what you should expect when filing your 2023 tax return, and key updates to tax laws for the year.
2024 Important Dates and Deadlines
January 16, 2024 — Estimated Q4 payments for 2023 due
January 29, 2024 — IRS opens for e-filing
Beginning February 27, 2024 — IRS expects most EITC and ACTC refunds to be available
April 15, 2024 — Deadline to file a U.S. Individual Income Tax Return (Form 1040) for 2023
April 15, 2024 — Deadline to request an extension to file
April 15, 2024 — Estimated Q1 payment for 2024 due
May 17, 2024 — Deadline to file a 2020 tax return and claim Recovery Rebate Credit
June 17, 2024 — Estimated Q2 payments for 2024 due
September 16, 2024 — Estimated Q3 payments for 2024 due
October 15, 2024 — Deadline to file 2023 tax return on extension
January 15, 2025 — Estimated Q4 payments for 2024 due
2023 Rates, Credits, and Deductions
Here are the 2023 rates and limits that will apply to the tax return you file in 2024.
Standard Deduction
The rates for the 2023 standard deduction based on filing status are:
Single and married filing separately: $13,850
Head of household: $20,800
Married filing jointly: $27,700
Rates will vary for those 65 years and older and those with blindness.
Learn more about standard deduction vs. itemized deductions.
Marginal Tax Rates
Marginal tax rates refer to the amount you will be taxed based on your income level. Depending on your taxable income, you may be in multiple tax brackets. Here are the marginal tax rates for 2023:
10% for incomes of $11,000 or less ($22,000 for married couples filing jointly)
12% for incomes over $11,000 ($22,000 for married couples filing jointly)
22% for incomes over $44,725 ($89,450 for married couples filing jointly)
24% for incomes over $95,375 ($190,750 for married couples filing jointly)
32% for incomes over $182,100 ($364,200 for married couples filing jointly)
35% for incomes over $231,250 ($462,500 for married couples filing jointly)
37% for incomes over $578,125 ($693,750 for married couples filing jointly)
Earned Income Tax Credit
Here are the maximum amounts to qualify for the Earned Income Tax Credit in 2023 based on filing status and number of children or relatives claimed:
| Children or Relatives Claimed | Single, Head of Household, and Widow AGI | Married Filing Jointly AGI | Max Credit Amount |
|---|---|---|---|
| Zero | $17,640 | $24,210 | $600 |
| One | $46,560 | $53,120 | $3,995 |
| Two | $52,918 | $59,478 | $6,604 |
| Three or More | $56,838 | $63,398 | $7,430 |
Learn more about the Earned Income Tax Credit.
Retirement Savings
The 2023 contribution limit for traditional IRAs and Roth IRAs increased to $6,500, up from $6,000 in 2022. For Roth IRAs, there is an income phase-out limit, so make sure to look out for that. If you’re 50 or older, you get an additional $1,000 catch-up contribution. Individuals with a 401(k) plan can contribute up to $22,500, up from $20,500 in 2022.
Learn more about Individual Retirement Arrangements (IRAs).
Tax News and Updates
Taxpayers may receive a CP10A Notice
The IRS will be sending out CP10A Notices that will tell taxpayers their unique 6-digit Identity Protection Personal Identification Number (IP PIN) that is needed to file their tax return.
Learn more about the IRS Identity Protection PIN (IP PIN)
1099-K Reporting Theshhold Delayed
The IRS has delayed the implementation of the new reporting threshold for third-party payment platforms and increased the threshold from $600 to $5,000. Taxpayers above this threshold will receive a Form 1099-K at the beginning of 2025.
Learn more about Form 1099-K.
Expanded Energy-Related Credits
If you purchased an electric vehicle in 2023 or made energy improvements to your home, you may qualify for expanded credits made under the Inflation Reduction Act of 2022.
Visit the IRS website to learn more about credits for new clean vehicles purchased in 2023 or after.
Need help filing your 2023 tax return?
If you need help filing your taxes this year, we can help! Give us a call at (360) 922-0235. Our tax preparers stay up to date on all the newest tax changes and have years of experience filing taxes for a wide variety of situations. You can trust you’re in good hands when you file with Northside Tax Service.
