M & M Tax Service, LLC

Professional Tax Preparation



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1. Tax brackets got wider

      While the rates didn’t change, there was an increase in the brackets, which expanded the amount of taxable income you can have in each tier. You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income. For example, the 24% tax rate now applies to single filers with incomes over $100,525 and married filing jointly with incomes over $201,050.

2. There’s a bigger standard deduction

     Inflation also boosted the standard deduction for 2024, which reduces your taxable income, but makes it harder to claim itemized tax breaks for charitable giving or medical expenses.

For 2024, the standard deduction increased to $29,200 for married couples filing jointly, up $1,500 in 2023. Single filers may claim $14,600 for 2024, an increase of $750. Head of Household increased to $21,900, up $1,100.

3. Form 1099-K reporting changes are in effect

     The reporting threshold for form 1099-K has been lowered to $5,000 from $20,000. This means that income from online sales or gig work exceeding this amount on platforms like PayPal or Ebay must be reported to the IRS. 

4. Energy tax credits are in play

     Tax credits for energy efficient Home Improvements and electric vehicle purchases have been expanded. For instance the clean vehicle credit offers up to $7,500 for new electric vehicles and up to $4,000 for used ones. 

5. Penalty free emergency withdrawals from retirement accounts

       Starting in 2024, individuals can withdraw up to $1,000 from retirement accounts for emergency expenses without incurring the usual 10% early withdrawal penalty. However standard income taxes may still apply.