Taxpayers gearing up for the 2024 tax season are in for significant changes as the IRS rolls out adjustments to brackets and standard deductions. These modifications could result in larger refunds or lower tax liabilities for many individuals and families.
 2024 Tax Season: Tax Filing Changes You Need to Know (Photo from: Adobe Stock)
Changes to IRS Procedures
The IRS has kicked off the 2024 tax season early, starting to accept returns on January 29, 2024. One of the most notable changes this year is the option for online submission of various documents that traditionally required manual filling and mailing. This shift aims to streamline the filing process, reducing the time it takes for taxpayers to receive their refunds.
Tax consultant Mark Cappis emphasizes that tax brackets are being raised by 5.5%, potentially impacting taxpayers’ liabilities and refund amounts. The standard deductions are also increasing incrementally to adjust for inflation. These adjustments are aimed at providing relief to taxpayers and simplifying the filing process.
In addition to federal changes, states like Montana are implementing significant tax structure adjustments. Montana has simplified its tax brackets from five or six down to two, lowering rates. However, to align with federal filing status and deductions, taxpayers must navigate similar choices on their state returns.
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Shortage of Tax Preparers
Another factor affecting this 2024 tax season is the ongoing shortage of tax preparers, exacerbated by the challenges posed by the COVID-19 pandemic. Larger firms have had to downsize, leading to fewer professionals available to assist taxpayers with their filings. This shortage underscores the importance of early preparation and utilizing online resources.
As taxpayers navigate the 2024 tax season, they should be aware of the various changes implemented by the IRS and state governments. Adjusting brackets, deductions, and filing procedures could significantly impact individuals’ tax liabilities and refund amounts. Staying informed and seeking assistance from qualified professionals will be vital in navigating these changes effectively.
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