🚨 2024 & 2025 Tax Updates 🚨

📌 Federal Tax Rates and Adjustments

2024 Tax Brackets: Applicable to single filers, married joint filers, and heads of households. Marginal tax rates range from 10% to 37%.
Capital Gains Tax Rates: Adjusted based on filing status. Estates and trusts will face higher rates.

📌 Standard Deductions (2024)

• Single: $14,600
• Married Joint Filers: $29,200
• Head of Household: $21,900

Additional Deductions: Available for those 65 or older, or blind.

📌 Alternative Minimum Tax (AMT)

• Single: $85,700
• Married Joint Filers: $133,300

📌 Gift and Estate Tax

2024 Lifetime Exemption:

• Single: $13.61 million
• Married: $27.22 million

2025 Update: The exemption is set to increase.

📈 Retirement Savings Updates

401(k) and IRA Contributions

• 2024 401(k) Limit: $23,000
• 2025 401(k) Limit: $23,500

Catch-Up Contributions:

• For those 50+: Standard catch-up allowed.
• Ages 60–63: Additional $11,250 permitted.
• Health Savings Accounts (HSA)

2024 Limits:

• Single: $4,150
• Family: $8,300

55+ Catch-Up: Additional $1,000

SECURE 2.0 Updates

Emergency penalty-free withdrawals are now permitted for retirement funds.
Employers offering retirement contributions to employees may qualify for incentives.

🔔 IRS Trends

Audit Targets
Increased audits for high-income earners and large corporations.
Audit rates for small businesses and taxpayers earning less than $400,000 will remain low.
Cryptocurrency Regulations
Starting 2025, all cryptocurrency brokers must report sales income.
1099-K Reporting Changes
2024: Reporting threshold for online payments is $5,000.
2025: Lowered to $2,500.
2026: Threshold drops to $600.

🏠 Residence and Domicile Considerations

Abandoning Old Residences
Intent to abandon your old residence must be clear (e.g., selling the house).
Major Cases
Two key 2024 tax rulings may impact:
Self-employment taxes for limited partners.
Estate tax valuations.

🚨 2025 Tax Law Changes

Expiration of Tax Cuts and Jobs Act Provisions: Expected to affect tax rates, estate exclusions, SALT deductions, etc.

📑 Prepare in Advance

Organize tax documents early to avoid end-of-year stress.
Focus on deductions like home office expenses and non-cash charitable donations.

📞 Have Questions?

Contact Anteng Accounting at 718-801-8060 for assistance!