IRS Updates

Crew Taxes

EV Credit: The Electric Vehicle Credit ends on September 30, 2025. This means if you purchase a qualifying vehicle before that date, the credit will still be available to you. However, if you purchase an EV after this date, you won’t be able to take advantage of the credits for 2025 or on future tax returns.
Energy Efficient Home Improvement Credit: Qualified energy-efficient improvements could allow for a tax credit of up to $3,200. This credit will not be available for improvements placed in service after December 31, 2025.
Residential Clean Energy Credit (Solar): The solar tax credit allows solar system owners to receive a federal tax credit worth up to 30% of the eligible cost basis of a solar and/or battery storage installation. Residential Clean Energy Credit will be terminated at the end of the year, and systems installed after December 31, 2025, and beyond will not qualify for a federal tax credit.
No Tax on Social Security: The way this has been publicized can be misleading; social security will be taxed as normal, similar to previous years. What the new bill offers is an increased DEDUCTION on the return for individuals age 65 and older. These deductions can be claimed, whether or not you itemize.

Senior Deduction

Up to $6,000 for single filers (ages 65+), $12,000 for married filing jointly.

Income Limits for Full Benefit

Singles: Modified Adjusted Gross income (MAGI) ≤ $75,000.

Joint: MAGI ≤ $150,000

Increased Limit for Tax Deductions for State and Local Taxes (SALT): This was previously capped at $10,000; now individuals may take a tax deduction up to $40,000 of state and local taxes ($20,000 if married filing separately). There is a phase-out to the limit for the tax deduction for individuals whose MAGI is over $500,000 ($250,000 for married filing separately), but it never goes below $10,000.

*Many of you who have not been able to itemize for years may be eligible now to itemize. Be sure to keep any charitable donation receipts.

Charitable Contributions Tax Deduction: The law allows a tax deduction for charitable contributions made by an individual who does not itemize their tax deductions. The deduction is limited to $1,000 ($2,000 if married filing jointly), electronic payments and cash/checks only, with receipts.

Here are the IRS updates for the tax year 2024 from Crew Taxes. Feel free to call with any questions.

Other Dependent Credit: $500 nonrefundable credit for each qualifying person on the return.
Per Diem Calculations: Only available for state returns where employee expense deductions are allowed (AL, AR, CA and HI) . And Federal Tax returns prior to 2018.
SALT (State & Local Taxes): Which include state, local, and property taxes are still limited to $10,000.
Child Tax Credit (CTC): Child tax credit is reduced back to $2,000 per child if your MAGI does not exceed a certain limit.
Child and Dependent Care Credit: The maximum credit percentage is 35%. It is allowed for up to $3,000 in expenses for one child/disabled person and $6,000 for more than one.
Medical Deductions: Out-of-pocket medical expenses must exceed 7.5% of Adjusted Gross Income. Medical expenses do not include pre-tax payroll deductions for company health insurance.
Residential Clean Energy Credit (SOLAR): For 2022-2032, 30% with no annual maximum or lifetime credit.
1099-K Income Earners: For 2024, if you accept payments for goods or services over a third-party network (i.e., Venmo, PayPal, Stripe, Square, Zelle, Cash App) that exceeds $600 annually, you will receive a 1099-K and have to report it as income.
Energy Efficient Improvement Credit: For 2023-2032, 30%, up to a maximum of $1,200, no lifetime limit.
Capital Gains: Short-Term capital gains are taxed as ordinary income. Long-Term gains are taxed 0%, 15%, and 20% depending on income and filing status.

Roth Contribution Phase-Out: The Adjusted Gross Income (AGI) phase out range for taxpayers married filing joint in 2024 = $230,000-$240,000. Phase out range for single and head of household filers are $146,000-$161,000, respectively.
Contributions limit is $7,000; and $8,000 over the age of 50.
Gift Exclusions: For 2024 a maximum of $18,000/person; this amount is not tax deductible to the gifter, nor is it taxable income to the recipient.
401K Contributions: For 2024, maximum contributions of $23,000 under the age of 50. Over the age of 50, an additional $7,500 may be contributed (catch up contributions).
Traditional Contribution Phase-Out: The Adjusted Gross Income (AGI) phase out range for taxpayers married filing joint in 2024=$123,000 to $143,000; and for single and head of household filers=$77,000 to $87,000. If only one spouse is covered by a plan, the phase out zone for deducting a contribution for the uncovered spouse starts at $230,000 of AGI and ends at $240,000.

TAX BRACKET	SINGLE	HEAD OF HOSUEHOLD	MARRIED FILING JOINT	MARRIED FILING SEPARATELY
10%=	$0 – $11,600	$0 – $16,550	$0 – $23,200	$0 – $11,600
12%=	$11,601 – $47,150	$16,551 – $63,100	$23,201 – $94,300	$11,601 – $47,150
22%=	$47,151 – $100,525	$63,101 – $100,500	$94,301 – $201,050	$47,151 – $100,525
24%=	$100,526 – $191,950	$100,501 – $191,950	$201,051 – $383,900	$100,526 – $191,950
32%=	$191,951 – $243,725	$191,951 – $243,700	$383,901 – $487,450	$191,951 – $243,725
35%=	$243,726 – $365,600	$243,701 – $609,350	$487,451 – $731,200	$243,726 – $365,600
37%=	365,601	$609,351 +	$731,201 +	365,601