Navigating the complexities of changing tax laws is crucial for individuals and businesses alike. Staying informed about updates in federal and state tax codes ensures compliance and offers opportunities to minimize tax liabilities. At Fricke & Associates, LLC, we specialize in helping clients understand these changes, enabling effective tax filing. Peachtree Corners, GA and Atlanta, GA business entities and individuals can benefit from our wide-ranging tax services.
Federal Tax Law Updates
For the 2024 tax year, the IRS has adjusted the standard deduction to account for inflation. Married couples filing jointly can now deduct $29,200, an increase of $1,500 from 2023. Single filers see an increase of $750, bringing the deduction to $14,600, while heads of households have a new deduction of $21,900, up by $1,100.
In addition, the capital gains tax threshold has been raised. Individual filers with taxable income up to $47,025 will owe no capital gains tax, an increase from the previous threshold of $44,625. Income between $47,026 and $518,400 will be subject to a 15% rate.
When it comes to tax filing time, it’s also important to know that many provisions of the Tax Cuts and Jobs Act (TCJA) of 2017 are set to expire in 2025. However, the incoming administration has stated its intention to preserve and extend the tax cut provisions of this Act.
Georgia State Tax Law Updates
Georgia has implemented notable tax reforms effective January 1, 2024. House Bill 1015 reduces the flat individual income tax rate from 5.49% to 5.39%, accelerating the timeline for future reductions, with a target rate of 4.99% by 2028.
House Bill 1023 aligns the corporate income tax rate with the individual rate, decreasing it from 5.75% to 5.39%. Additionally, House Bill 1021 increases the state’s income tax exemption for dependents from $3,000 to $4,000 per person, providing further relief to taxpayers.
Implications for Tax Filers
These changes present both opportunities and challenges for tax filers. Adjustments in standard deductions and tax rates can impact withholding amounts and overall tax liabilities. It’s essential to review and possibly update your tax strategies to align with the new laws.
At Fricke & Associates, LLC, we offer comprehensive tax services customized to your needs. With our expertise in tax filing, Atlanta, GA and Peachtree Corners, GA individuals and businesses can remain compliant while maximizing potential benefits.
Understanding and adapting to tax law changes is vital for financial health. Staying informed and seeking professional guidance can help you navigate these updates effectively.
For personalized assistance with your individual or business tax needs, call us today at 770.874.8345 or use our contact form to leave us a message. Let Fricke & Associates, LLC help you navigate the complexities of tax law changes and optimize your financial strategies.
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