2024

Please be aware that a large number of individual tax items of the 2018 Tax Act sunset in 2025.

New Alimony Rules: For Agreements executed or modified after 12/31/2018, alimony received is not income and alimony paid is not a deduction. However, parties can elect to follow any new rules that will be effective in 2026 as long as indicated in executed agreement.

Auto Mileage Rates for 2024: Released December 14, 2023

Business – 67 cents per mile
Medical - 21 cents per mile
Charity - 14 cents per mile
Moving - 21 cents per mile (limited to members of Armed Forces)

Gift Exclusion Annual Amount for 2024:

$18,000

Foreign Earned Income Exclusion Annual Amount for 2024:

$126,500

Long-Term Care Insurance Premium Limits for 2024 (Decrease from 2023):

Age 40 or less: $470
More than 40, less than 51: $880
More than 50, less than 61: $1,760
More than 60, less than 71: $4,710
More than 70: $5,880

HSA contribution amounts for 2024:

Individual: $4,10 (+$1,000 for over age 55)
Family: $8,300 (+$1,000 for over age 55)

Compensation limits (401, 404, 408) for 2024:

$345,000

Certain expenses of elementary and secondary schoolteachers for 2024:

$300

Election to Expense Certain Depreciation Assets (Section 179) for 2024:

$1,220,000 (limit on capital purchases: $3,050,000). Maximum Sport Utility Vehicle cost is limited to $30,500.

Standard Deductions for 2024:

$29,200 (MFJ, Surviving Spouse);
$21,900 (HOH);
and $14,600 (Single, MFS).

Additional deduction for aged or blind is $1,550 ($1,950 for unmarried taxpayers). Dependents receive $1,300 or $450 plus earned income up to $14,600.

Additional Medicare Tax for 2024:

3.8% surtax on net investment income and 0.9% Medicare contributions tax on earned income when adjusted gross income exceeds:

  • $250,000 (MFJ, Surviving Spouse);

  • $200,000 (HOH and Single)

  • and $125,000 (MFS)

Deduction for Pass-through (includes Sole Shareholders) Entities:

20% of Qualified Business Income (QBI) limited to 50% of W-2 Wages or 25% of wages and 2.5% of Qualified Property Unadjusted Basis. Income limitations for service industries. QBI thresholds are $383,900 (MFJ); $191,950 (S/HOH/MFS).

Medicare Coverage and Part D Costs for 2024 (based on 2022 income):

- Monthly Medicare payments are $174.70 for MAGI under $103,000 for Single/MFS and under $206,000 for MFJ. Medicare Part D Premiums are set at plan premium at this level.

- Monthly Medicare payments are $244.60 for MAGI above $103,000 up to $129,000 for Single and above $206,000 up to $258,000 for MFJ. Monthly Medicare Part D Premiums are set at plan premium plus $12.90 at this level.

- Monthly Medicare payments are $349.40 for MAGI above $129,000 up to $161,000 for Single and above $258,000 up to $322,000 for MFJ. Monthly Medicare Part D Premiums are set at plan premium plus $33.30 at this level.

- Monthly Medicare payments are $454.20 for MAGI above $161,000 up to $193,000 for Single and above $322,000 up to $386,000 for MFJ. Monthly Medicare Part D Premiums are set at plan premium plus $53.80 at this level.

- Monthly Medicare payments are $559.00 for MAGI above $193,000 up to $500,000 for Single; above $386,000 up to $750,000 for MFJ; and above $103,000 up to $397,000 for MFS. Monthly Medicare Part D Premiums are set at plan premium plus $74.20 at this level.

- Monthly Medicare payments are $594.00 for MAGI above $500,000 for Single; above $750,000 for MFJ; and above $397,000 for MFS. Monthly Medicare Part D Premiums are set at plan premium plus $81.00 at this level.

Maximum Dependent Income in 2024:

$5,050 for Qualifying Individual not attending school for any part of five months.

Kiddie Tax in 2024:

Unearned income over $1,299 is taxed at Parent’s rate.

Depreciation Component: Released December 14, 2023

For business purposes of standard mileage rates are:

24 cents in 2015 and 2016;
25 cents in 2017 and 2018;
26 cents in 2019;
27 cents in 2020;
26 cents in 2021;
26 cents in 2022;
28 cents in 2023;
and 30 cents in 2024.

Estate and Gift Lifetime Exclusion for 2024:

$13.61 million ($27.22M for spousal portability election)

Social Security Numbers for 2024:

COLA increase of 3.2%. Max benefits at full retirement age is $3,822/mo

Wage Limit: $168,600

Quarter of Coverage: $1,730

Retirement Earnings Test Exempt Amounts if under retirement age: $22,320/yr ($1,860/mo). Can earn $22,320 in 2024 before their benefits are reduced by $1 for every $2 in excess earnings.

Retirement Earnings Test Exempt Amounts for year attaining retirement age before birth date: $59,500/yr ($4,958/mo). Benefit Reduction for months prior to full retirement age: $1 of benefits for every $3 earnings over limit

FSA contribution amounts for 2024:

$3,200. Maximum carryover amount is $640.

Retirement Deferrals for 2024:

401(k) - $23,000 (age 50 and over catch-up is $7,500)
Simple - $16,000 (age 50 and over catch-up is $3,500)
IRA - $7,000 (age 50 and over catch-up is $1,000)
Defined Contribution Plan - $69,000

Child Tax Credit in 2024:

$2,000 for children under 17 years of age. Maximum refundable portion per child of $1,700. Other dependents qualify for a $500 nonrefundable credit.

Bonus Depreciation in First Year:

60% for assets placed in service in 2024;
40% for 2025;
20% for 2026;
and 0% for 2027.

Alternative Minimum Tax for 2024:

For 2024, the exemption amounts are $85,700 (Single/HOH); $133,300 (MFJ) and $66,650 for (MFS) and do not phase out until $609,350 (Single/HOH/MFS) and $1,218,700 (MFJ). The exemption amount for estates and trusts is $29,900. The 28% rate applies to excess AMTI of $232,600 (MFJ/HOH/Single) and $116,300 (MFS)

ACA Penalty for 2024:

For 2024, the penalty for not maintaining minimum essential health coverage: $0

Capital Gains Tax Brackets for 2024:

0% for income $0 to $47,025 (Single); $0 to $94,050 (MFJ); and $0 to $63,000 (HOH)

15% for income $47,026 to $518,900 (Single): $94,051 to $583,750 (MFJ); and $63,001 to $551,350 (HOH)

20% for income over $518,900 (Single); over $583,750 (MFJ); and over $551,350 (HOH)

Student Loan Interest Deduction for 2024:

Capped at $2,500 and phases out at $80,000 to $95,000 (S/HOH) and $165,000 to $195,000 (MFJ). No deduction for MFS.

OHIO TAX UPDATES:

Commercial Activities Tax:

  • As of 1/1/2024, if gross receipts are under $3,000,000, taxpayers may cancel their account effective 12/31/2023. For Annual filers, the deadline to file the final return is May 10, 2024. For quarterly filers, the deadline is February 10, 2024. THEREFORE, GROSS RECEIPTS MUST BE AVAILABLE PRIOR TO THESE DEADLINES TO CLOSE THE ACCOUNT AND AVOID THE TAX.

  • As of 1/1/2025, if gross receipts are under $6,000,000, taxpayers may cancel their account effective 12/31/2024. The deadline to file the final return is February 10, 2025. THEREFORE, GROSS RECEIPTS MUST BE AVAILABLE PRIOR TO THE DEADLINE TO CLOSE THE ACCOUNT AND AVOID THE TAX.

Municipal Notices and Late Filing Penalty:

For tax years ending on or after Jan 1, 2023, the late filing penalty is reduced from $150 cap to $25; the first late filing penalty is to be refunded or abated once the overdue return is filed; and Net Profits tax returns are now due Nov 15th rather than Oct 15th.

Municipal Income Tax Does Not Apply to Minors:

For taxable years beginning on or after Jan 1, 2024, individuals under the age of 18 are exempt from Ohio municipal income tax.