During this past year no new tax legislation was enacted.
Legislation previously enacted which effect 2024 taxes.
Inflation Reduction Act
- Extended the Residential Clean Energy Credit and increased the amount of the credit. The lifetime credit limitation was removed and replaced by annual credit limitations.
- Beginning in 2023, the number of units sold limitation has been removed. There are now limits on the credit based on income, price of the vehicle, and where the battery components are made.
- Beginning in 2024 the Clean Vehicle Credit can be transferred to the dealer to reduce purchase price.
Secure Act 2.02
- Changes were made to when Required Minimum Distributions (RMD) must begin. The age for RMD's will increase to 73 in 2023 for taxpayers who turn 72 after 2022 and 75 in 2033.
- Beginning in 2023 matching contributions can be made to a Roth account if the employee is 100% vested in the plan. Previously these matching contributions could only be made to pretax accounts.
- Currently catch-up contributions can only be made on a pretax basis. Beginning in 2023, matching contributions can be made to Roth accounts.
There are inflationary increases to the standard deduction and tax brackets.
In 2024 the first $ 176,100 of earned income will be taxable for Social Security.