JACKSONVILLE, Fla. — It is hard to believe, but it is time to start working on those tax returns again. The 2024 tax season begins in less than two weeks.
Marshall Gunn is a CPA at Gunn & Company, P.A. in Jacksonville. He said now is a good time to get documents in order. Income tax bracket thresholds were adjusted by 7% to account for inflation for tax year 2023. This means some people could see a smaller tax bill or larger refund. Standard deductions are also increasing. For married couples filing jointly, it's up $1,800, and for single filers, it's up $900.
"Hopefully your income was adjusted annually, too. So there's that bracket creep of your income moved up, your bracket moved up, so you're about the same place. But if your income stayed the same, you should see some improvement on your income just because the standard deduction went up," Gunn explained.
Gunn said people should also pay attention to the tax credits they may qualify for, including the Earned Income Tax Credit, Child Tax Credit, or the clean vehicle tax credit.
"If you bought an electric vehicle in 2023, you want to be sure not to overlook that credit. If you did some solar improvements to your home, you don't want to overlook that credit. So there are a number of credits out there that if you are participating in improving your home or a new car, you definitely want to take a look at those credits, because some of them are pretty strong," Gunn said.
People can also contribute an additional $2,000 to their 401ks bringing the total up to $22,500 for the year.
There will also be a new way to file taxes. Floridians will be part of the IRS Direct File pilot program. It will allow people to file directly through the IRS online for free. That program is expected to roll out in March.
If you still need help filing your returns, you might be eligible for the Volunteer Income Tax Assistance Program (VITA). Alejandra Castro, a spokesperson for the IRS, said people who make $60,000 or less can get their taxes prepared for free.
"That's a program with volunteers all over the nation, and you can call to make an appointment, and they prepare your taxes for free. They're in different areas of the community," Castro said.
To find a list of VITA locations, click here.
People can begin submitting their tax returns on Jan. 29. The final deadline to file or request an extension is April 15.