For tax filing year 2024 the standard deduction rates are as follows:
- Single or Married Filing Separate $14,600
- Married Filing Joint $29,200
- Head of House Hold $21,900
For tax filing years 2025 the standard deduction rates are as follows:
- Single or Married Filing Separate $15,000
- Married Filing Joint $30,000
- Head of House Hold $22,500
- If you are 65 and older you qualify for an additional
- $1,950 in your standard deduction.
PERSONAL INCOME TAX
RETIREMENT CONTURBUTIONS
For individual retirement accounts or IRA's both Roth and traditional types the 2024 contributions will max out at $7000.00. Those age 50 and older can contribute an additional $1,000.00.
AFFORDABLE CARE ACT/PREMIUM TAX CREDIT:
If you purchased health insurance from the Marketplace in 2024 you will still receive form 1095A. We will need this form in order to prepare your tax return.
2024 ENERGY CREDITS
Energy credits have been extended until December 31, 2032. If you have installed new energy efficient exterior doors, windows, skylights or had insulation materials or systems installed with air sealing materials please bring us those receipts. You may qualify for a credit up to 30% tax credit.
These items qualify for credits as well central air conditioners, natural gas, propane or oil water heaters, furnaces, hot water boilers. Improvements to or replacement of panelboards, sub- panelboards, branch circuits or feeders. Home energy audits, heat pumps and biomass stoves and boilers.
Gifting
We receive a lot of questions regarding gifting money. The annual gift tax exclusion is $19,000.00 for 2025. A person can give up to $19,000.00 to as many family members as he or she wants without any taxes on the gifts. However this is not a tax deduction for the person gifting the money.
2024 Standard Mileage Rates
The IRS standard mileage for business is 0.67. Medical mileage rate is 0.21, and charity mileage rate is 0.14. The IRS has not release the mileage rates for 2025 at the time this newsletter was written.
Pennsylvania Tax Updates: (New for 2024)
Student loan interest paid on qualified student loans may be deducted from Pa taxable income. The deduction must not exceed $2,500.00 per tax year and cannot result in a taxpayer's taxable income being less than zero.
Percentage Depletion of Mineral Deposits:
Taxpayers may claim a tax deduction for the percentage of depletion of a mine, oil or gas well and the natural deposits on the taxpayer's property.
Pennsylvanian' Property Tax Rebate:
This rebate program has been in place for many years but starting in 2024 the income cap for the rebate program has been increased to a house hold income of $45,000.00 per year. The max rebate amount is $1,000.00 To qualify for this rebate you must be age 65 and older, widow and widowers age 50 and older and individuals with disabilities age 18 and older.
What to Bring to Bring to Your Tax Appointment
• Federal, state, and local estimated payment vouchers.
• W-2s, 1099s, SSA statement or business records if you are self-employed.
• Social security cards for you, your spouse, and dependents.
• Date of birth for taxpayer, spouse, and all dependents.
