Insights

Tax Season is Here: Start Preparing Early

02.15.24

The IRS began accepting returns on Monday, January 29, 2024, kicking off the 2024 tax season. Of note, they have promised to extend their hours of service at Taxpayers Assistance Centers across the country, improve their phone service, and expand online tools.

Whether you plan to file by April 15th or file on extension, now is a great time to start gathering tax documents and to speak with your tax advisor. By doing this, you can consider the 2024 changes and how they might impact you, especially since this tax season brings inflation related adjustments and potential changes due to last-minute legislation from Congress.

Changes for the 2024 Tax Filing Season

2023 brackets have been adjusted upward by about 7% to account for last year’s high inflation which could mean more substantial refunds for some individuals.

Child Tax Credit Enhancement. The US House of Representatives voted recently in favor of a $78 billion tax deal, which includes an expanded child tax credit. The Tax Relief for American Families and Workers Act of 2024 has advanced to the U.S. Senate, and it is unclear when or if it will pass and become law. The pending legislation increases the maximum refundable Child Tax Credit amount from $1,600 per child in the 2023 tax year to $1,800 in 2023, $1,900 in tax year 2024, and $2,000 in tax year 2025, along with adjusting it for inflation in tax years 2024 and 2025. 

Own a small business? The Corporate Transparency Act went into effect on January 1, 2024 and will be a significant compliance concern for small business owners. The CTA requires a Beneficial Ownership Information (BOI) report be filed for each of the beneficial owners of a business. This won’t impact income tax filings this tax season, but the BOI information report is due by January 1, 2025 for entities in existence at 1/1/24. For entities established after January 1, 2024, the form is due 90 days after formation. There has been much debate over who should prepare these forms – accountants or attorneys.  There will surely be further discussion in the year ahead.

Please schedule an appointment if you have any questions about your specific tax situation.

Authored by Kathy Buchs, CPA, MT, Senior Tax Advisor & Team Leader, MAI Capital Management.


Information updated as of 2.13.24

Please send your questions, comments, and feedback to: info@mai.capital. The opinions and analyses expressed herein are subject to change at any time. Any suggestions contained herein are general, and do not take into account an individual’s or entity’s specific circumstances or applicable governing law, which may vary from jurisdiction to jurisdiction and be subject to change. Distribution hereof does not constitute legal, tax, accounting, investment, or other professional advice. Recipients should consult their professional advisors prior to acting on the information set forth herein. In accordance with certain Treasury Regulations, we inform you that any federal tax conclusions set forth in this communication, were not intended or written to be used, and cannot be used by any taxpayer, for the purposes of avoiding penalties that may be imposed by the Internal Revenue Service.

We look forward to learning about your financial goals.

CONTACT