Filing for Tax Year 2024

Tax Day is Tuesday, April 15, 2025. You must file your 2024 tax returns by this date! 

Various changes are listed below.  I am happy to discuss any of these with you, or any questions that you have about anything that I haven’t covered.  Please call me at (812) 327-9108 or email me at cathy@cmartinaccounting.com to discuss any issues.

Tax Brackets for 2024 (taxes due April 15, 2025)

Tax rate

Single

Married filing jointly

Head of household

10%

$0 to $11,600.

$0 to $23,200.

$0 to $16,550.

12%

$11,600 to $47,150.

$23,200 to $94,300.

$16,550 to $63,100.

22%

$47,150 to $100,525.

$94,300 to $201,050.

$63,100 to $100,500.

24%

$100,525 to $191,950.

$201,050 to $383,900.

$100,500 to $191,950.

32%

$191,950 to $243,725.

$383,900 to $487,450.

$191,950 to $243,700.

35%

$243,725 to $609,350.

$487,450 to $731,200.

$243,700 to $609,350.

37%

$609,350 or more.

$731,200 or more.

$609,350 or more.

Higher Standard Deductions in 2024

When you pay taxes, you have the option of taking the standard deduction or itemizing your deductions. If you itemize, you calculate your deductions one by one. Itemizing is more of a hassle, but it’s worth it if your itemized deductions exceed the amount of the standard deduction.

For tax year 2024, the standard deduction went up slightly to adjust for inflation.

Standard Deduction

Filing Status

2023

2024

Single

$13,850

$14,600

Married Filing Jointly

$27,700

$29,200

Married Filing Separately

$13,850

$14,600

Head of Household

$20,800

$21,900

Child Tax Credit/Advance Child Tax Credit Payments

For tax year 2024, the Child Tax Credit benefits available areas follows:

  • Up to $2,000 for 2022 – 2025

  • Each dependent child must be under age 17

  • Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew).

  • Not provide more than half of his or her own support for the tax year.

  • Have lived with you for more than half the tax year.

  • Be claimed as a dependent on your return.

  • Refundable up to $1,700, but no longer fully refundable

  • The credit is available if you earn up to $200,000 as single taxpayer or head of household (or up to $400,000 if you are a married couple filing jointly)

Note: It’s important to know that the child tax credit differs from the child and dependent care credit. The federal Credit for Child and Dependent Care expenses can be helpful if you paid someone to care for your child or other qualifying dependent so that you (and your spouse if filing jointly) could work or look for work. Your federal income tax may be reduced by claiming the credit for child and dependent care expenses on your tax return.

Earned Income Tax Credit for 2024

For 2024 (taxes filed in 2025), the earned income credit ranges from $632 to $7,830, depending on your filing status and how many children you have.

Below are the maximum 2024 earned income tax credit amounts, plus the most you can earn before losing the benefit altogether.

Number of Children

Maximum earned income tax credit

Max AGI, single or head of household filers

Max AGI, married joint filers

0

$632

$18,591

$25,511

1

$4,213

$49,084

$56,004

2

$6,960

$55,768

$62,688

3 or more

$7,830

$59,899

$66,819

Regardless of when you file, your refund will be delayed if claiming the Earned Income tax credit. The IRS expects most EITC/Additional CTC related refunds to be available in taxpayer bank accounts or on debit cards by March 1, if they chose direct deposit and there are no other issues with their tax return.

HSA Contribution Limits

Every year, the Internal Revenue Service (IRS) sets the maximum that can be contributed to an HSA. For example, if your HSA contribution limit for the year is $4,150 (as it is in 2024) and your employer contributes $1,000, you can only contribute $3,150—unless you’re eligible for a catch-up contribution of $1,000.

The amount you can contribute to an HSA each year is determined by whether you are enrolled in self-only or family coverage and if you are age 55 or older.

2024 HSA contribution limits

The HSA contribution limits for 2024 are $4,150 for self-only coverage and $8,300 for family coverage. Those 55 and older can contribute an additional $1,000 as a catch-up contribution.

2025 HSA contribution limits

The HSA contribution limits for 2025 are $4,300 for self-only coverage and $8,550 for family coverage. Those 55 and older can contribute an additional $1,000 as a catch-up contribution.

HSA eligibility

To contribute to an HSA, you must be enrolled in an HSA-eligible health plan.

For 2024, this means:

  • It has an annual deductible of at least $1,600 for self-only coverage and $3,200 for family coverage

  • Its out-of-pocket maximum including annual deductible does not exceed $8,050 for self-only coverage and $16,100 for family coverage

And to contribute to an HSA you must:

  • Not be enrolled in a health plan that is not an HSA-eligible plan, nor can you have a full-purpose health care flexible spending account (FSA)

  • Not be enrolled in Medicare

  • Not claimed as a dependent on someone else’s tax return

HSA Contribution Deadline

You generally have until the tax filing deadline to contribute to an HSA. In most tax years, this is at or around April 15.

HSA contribution limits when you aren’t enrolled in an HSA-eligible health plan for the full year

If you aren’t enrolled in an HSA-eligible health plan for the full year, you may only be able to contribute a portion of the allowable amount. Although, if you’re covered on December 1 of a given year, you may be able to contribute the maximum amount allowed.

You can calculate your prorated contribution amount by counting the number of months you were enrolled in an HSA-eligible health plan on the first of a month and dividing it by 12. Then multiply the number by the total amount you could contribute if you were eligible the whole year. If you have single coverage and were enrolled in an HSA-eligible health plan at the start of the year and your coverage ends on November 30, 2024, for example, you could contribute $3,804.17 as an individual for the year.

Home Energy Credits

There are some home energy credits available this year for improvements made to your primary residence.

Who can claim the credits

You can claim either the Energy Efficient Home Improvement Credit or the Residential Energy Clean Property Credit for the year when you make qualifying improvements.

Homeowners who improve their primary residence will find the most opportunities to claim a credit for qualifying expenses. Renters may also be able to claim credits, as well as owners of second homes used as residences.

The credits are never available for improvements made to homes that you don’t use as a residence.

Energy Efficient Home Improvement Credit

These expenses may qualify if they meet requirements detailed on energy.gov:

  • Exterior doors, windows, skylights and insulation materials

  • Central air conditioners, water heaters, furnaces, boilers and heat pumps

  • Biomass stoves and boilers

  • Home energy audits

The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:

  • 2022: 30%, up to a lifetime maximum of $500

  • 2023 through 2032: 30%, up to a maximum of $1,200 (heat pumps, biomass stoves and boilers have a separate annual credit limit of $2,000), no lifetime limit

Other miscellaneous updates for tax year 2024

  • For tax year 2024, the foreign earned income exclusion is $126,500, increased from $120,000 for tax year 2023.

  • Estates of decedents who die during 2024 have a basic exclusion amount of $13,610,000, increased from $12,920,000 for estates of decedents who died in 2023.

  • The annual exclusion for gifts increases to $18,000 for calendar year 2024, increased from $17,000 for calendar year 2023.

  • The maximum credit allowed for adoptions for tax year 2024 is the amount of qualified adoption expenses up to $16,810, increased from $15,950 for 2023.