Do you find yourself grappling with the harsh reality of rising costs in one of the worst economic states that this country has ever seen? At this point, you might be cutting up coupons, eager to hear any bit of good news addressing a solution. It’s about time, but we’re finally starting to see a light at the end of the tunnel! Discover how taxpayers can save money on the IRS 2024 inflation adjustments before reaching out to your trusted financial advisors at Maggi Tax.
What’s Changed For 2024?
During times of financial crises, tax season becomes a moment of truth. Are steps being taken to mitigate the damages, or do we need to gear up for more monetary struggles? Prayers have been answered, and now we’re seeing an increase in tax brackets and more for the 2024 tax year.
Standard Tax Deduction Increase
For all of you singles-filers out there, you’ll be seeing a bigger deduction to help your case. To be precise, the standard deduction has been raised by $750. As for married couples, there are also increases but you’ll need to decide if filing taxes jointly or separately is right for you.
Social Security Adjustments
Seniors who are currently collecting social security get to enjoy a little treat as well. That’s because, for 2024, cost of living benefits have been increased by 3.2%! In addition, there are other ways to maximize your social security and pension benefits in early retirement.
Improved Tax Credits
Individuals who qualify for certain tax credits may also see an increase in how much they receive. A perfect example is the Earned Income Tax Credit which will be raising the maximum limit.
What These Inflation Adjustments Mean For You
All of these inflation adjustments should translate to more cash, right? Before you get your hopes up, it’s best to understand the importance of managing your expectations. Yes, more of your income will be taxed at lower rates, but that’s designed to help minimize the impact of inflation. So rather than thinking about it like you’ll be getting a profit, you should think of it as getting some kind of reimbursement for the prices you’ve been paying. That’s the intended purpose of these increases, after all.
Why Is The IRS Making These Changes?
While these inflation adjustments aim to compensate for rising costs, the IRS tends to look at the grand scheme of things when making these huge decisions. By fixing up tax brackets and deductions, we’ll have a better chance of stabilizing our economy. Without these changes, taxpayers will end up paying the usual amount this coming tax season while still facing a higher cost of living. This could easily result in lower purchasing power for the majority of Americans, thus causing our system to grind to a halt. Imagine what life would be like if everyone ceased to go grocery shopping because they simply couldn’t.
How To Act In Response To Inflation Adjustments
Now that you know what’s coming, is there anything you should be doing in response to the IRS 2024 inflation adjustments? To make the most out of your situation, it’s best to visit your trusted financial advisor. They’ll be able to teach you strategies that can help you maximize your taxes for a more desirable outcome so you can be more excited about these drastic changes.
For Professional Financial Advice Near You, Contact Maggi Tax!
All of these new tax adjustments can be a lot to take in, but Maggi Tax is here to help you navigate through everything you need to know about your next tax return. Be a step ahead and plan out your strategy today by calling (727) 799-1701 for a complimentary consultation!