Recent Changes in Tax Laws USA: Key Changes and How They Impact You

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When it comes to staying ahead of recent changes in tax laws USA, 2024 is a crucial year for both individuals and businesses. Some meaningful changes have been made, which might require serious restructuring of your financial management and procedures, including tax returns and investment planning. Let’s clear out the primary new updates so that we don’t miss anything important and can regain control over the year’s impact as soon as possible.

Increased Standard Deduction: More Savings for Taxpayers 

One of the most significant changes for 2024 is the increase in the standard deduction. For example, married couples filing joint tax returns have an increase of minus $29,200, which is around $1,500 more than it was in 2023. This adjustment is known to reduce the taxable income, which ultimately reduces the ultimate amount of tax to be paid. If you are an individual who tends to utilize the standard deduction and would rather not itemize, then this is some great news. More middle-income households could expect lower tax bills, which would save them more cash.

Corporate Tax Rate Hikes: What Businesses Need to Know 

For businesses, there is a significant change that has to be taken into account. Biden administration has recommended a corporate rate of 28%. This potential increase could translate into increased production costs for companies, especially small to medium-sized firms that may already be operating on very thin budgets.

Expansion of the Low-Income Housing Tax Credit: A Win for Developers

Good news for the American Families and Workers Act. The Low-Income Housing Tax Credit was expanded by 12.5% through 2025. Since the policy is geared towards more investments towards affordable housing, low-income families and real estate developers are likely to benefit. If you are still thinking of venturing into the low-income housing sector, the expansion of this credit opens new avenues for meeting the housing needs of the market and, at the same time, getting enjoyable tax reductions.

How Do These Changes Affect You?

To individuals, the additional standard deduction helps them ease up with their tax returns, and this may translate into less tax. There are opportunities for tax benefits, which the investors can take advantage of to fund these low-housing projects.

Conclusion

Getting familiar with the recent changes in tax laws USA is critical to coping with the changing tax environment. At BookMagiks, our specialists will assist you in untangling the tangle. Get in touch with us now for custom tactical consultation so that you are ready for filings and returns in the year 2024!