2024 Tax Changes Self Employed Should Know Which Lower Taxable Income

as an entrepreneur staying updated on tax adjustments is crucial for optimizing your financial strategy recent changes to tax laws in 2024 have introduced several key updates that could impact your finances and you need to be aware of I Want to Break these down for you in a simple clear way so that you know what changes will be impacting you and your business first is an increased standard deduction this year the standard deductions have seen a notable increase which means a potential reduction in your taxable income for single filers the standard deduction has risen from $3,850 up to $14,600 marry couples filing jointly now will benefit from an increased deduction in the amount of $29,800 an increase from the previous $ 27,700 additionally head of household filers will see their standard deduction increase from $220,800 up to $221,900 next the IRS has updated the income thresholds for tax brackets these revisions allow you to earn more before moving into a higher tax bracket potentially lowering your overall tax liability next is the earned income tax credit for the 2024 tax year the maximum eitc amount has risen to $7,810 for families with three or more qualifying children next are enhanced retirement contributions for 2024 the contribution limit for 401K plans is $23,000 with an additional catch-up contribution of $7,500 for those aged 50 and over