Navigating Tax Changes for the Year
Justin Hearty
Taxes and the laws around them are constantly changing. In this article, we take a look a look at important current and upcoming numbers related to your taxes.
In the ever-evolving landscape of tax laws, staying informed is the secret sauce to financial success. Let’s take a closer look at the latest tax changes and how they might shape your financial strategy in the coming year.
Standard Deduction Updates
The standard deduction often undergoes a facelift each tax year. Understanding whether to take the standard deduction or itemize can have a significant impact on your bottom line. Let’s explore any recent changes and how they might influence your decision.
Standard deduction numbers for 2023:
$13,850: For those married filing separately or single filers
$20,800: For those filing as head of household
$27,700: For those married filing jointly
Standard deduction numbers for 2024:
$14,600: For those married filing separately or single filers
$21,900: For those filing as head of household
$29,200: For those married filing jointly
Tax Bracket Tweaks
Your income doesn’t just determine how much you make—it also affects the tax bracket you fall into. Discovering whether your earnings put you in a different bracket this year can guide your financial decisions and potentially optimize your tax situation.
2023 TAX BRACKETS:
2024 TAX BRACKETS:
Rolling In Credits
Tax credits are like hidden gems in the tax world, offering a direct reduction in the amount of tax you owe. There are many credits available depending on your situation, such as the Child Tax Credit, American Opportunity Tax Credit and Earned Income Credit. It’s important for you to discuss your eligibility with your current accountant to ensure you are taking advantage of these credits! Availability of credits and the amounts provided are constantly changing, so it’s important to stay up to date each year during tax season.
It’s important to keep in mind that partnering with a knowledgeable financial advisor and CPA isn’t just a smart move – it’s a strategic investment in securing your financial future. The synergy between financial planning and tax expertise ensures a comprehensive approach to optimizing your wealth and navigating the complexities of the tax landscape. Remember, your financial success is a collaborative journey, and with the right professionals by your side, you’re well-equipped to make the most of every financial opportunity. Here’s to a prosperous and tax-savvy future!
About Strategic
Founded in 1979, Strategic is a leading investment and wealth management firm managing and advising on client assets of over $2 billion.
OverviewDisclosures
Strategic Financial Services, Inc. is a SEC-registered investment advisor. The term “registered” does not imply a certain level of skill or training. “Registered” means the company has filed the necessary documentation to maintain registration as an investment advisor with the Securities and Exchange Commission.
The information contained on this site is for informational purposes and should not be considered investment advice or a recommendation of any particular security, strategy or investment product. Every client situation is different. Strategic manages customized portfolios that seek to properly reflect the particular risk and return objectives of each individual client. The discussion of any investments is for illustrative purposes only and there is no assurance that the adviser will make any investments with the same or similar characteristics as any investments presented. The investments identified and described do not represent all of the investments purchased or sold for client accounts. Any representative investments discussed were selected based on a number of factors including recent company news or earnings release. The reader should not assume that an investment identified was or will be profitable. All investments contain risk and may lose value. There is no assurance that any investments identified will remain in client accounts at the time you receive this document.
Some of the material presented is based upon forward-looking statements, information and opinions, including descriptions of anticipated market changes and expectations of future activity. Strategic Financial Services believes that such statements, information, and opinions are based upon reasonable estimates and assumptions. However, forward-looking statements, information and opinions are inherently uncertain and actual events or results may differ materially from those reflected in the forward-looking statements. Therefore, undue reliance should not be placed on such forward-looking statements, information and opinions.
No content on this website is intended to provide tax or legal advice. You are advised to seek advice on these matters from separately retained professionals.
All index returns, unless otherwise noted, are presented as price returns and have been obtained from Bloomberg. Indices are unmanaged and cannot be purchased directly by investors.