The standard deduction for married couples filing jointly for tax year 2024 rises to $29,200, an increase of $1,500 from tax year 2023. For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023; and for heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.

Marginal rates: For tax year 2024, the top tax rate remains 37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly).

• The other rates are:
• 35% for incomes over $243,725 ($487,450 for married couples filing jointly)
• 32% for incomes over $191,950 ($383,900 for married couples filing jointly)
• 24% for incomes over $100,525 ($201,050 for married couples filing jointly)
• 22% for incomes over $47,150 ($94,300 for married couples filing jointly)
• 12% for incomes over $11,600 ($23,200 for married couples filing jointly)
• The lowest rate is 10% for incomes of single individuals with incomes of $11,600 or less ($23,200 for married couples filing jointly).

To read the full article and more about the adjustments, click here!

1. There are 10 million taxpayers who have not filed all their tax returns. Called “Non-Filers”
2. Over 15 million taxpayers have balances due to the IRS.
3. Of the non-filers, about 880,000 are high income earners, owing about $45.7 billion in taxes.
4. The IRS considers a high income earner as someone who makes $100,00 a year or more.
5. The IRS recently mailed out 8 million letters to taxpayers who still owe taxes.
6. The IRS is making it easier to pay taxes but not to appeal or disagree with tax assessments.
7. 70% or more IRS audits are done by correspondents, and the IRS never shows up at your door.
8. Tax liability cannot be discharged in bankruptcy unless the taxpayer is compliant (filed all required returns), and the tax liability to be discharged must be at least three years old. (Some variations apply depending on circuit case is heard in)

Meet the team at The Roberts Tax Group. This week we are introducing Se-Eun Kim.

Se-eun is a graduate of the University of Hartford. She has over five years of experience as a bookkeeper. She works on daily bookkeeping as well as major reconstruction of accounting records, for a variety of clients in various industries. During tax season, Se-eun helps prepare income tax returns for individuals and businesses.

Originally from Seoul, South Korea, Se-eun has called Torrington home for over 10 years. When she is not working, you can find her spending time with her husband and their two young daughters, Leah and Alie

To learn more about the staff at The Roberts Tax Group please click here. And be sure to check out next week's email to learn more about our great staff! .

Tax planning can be very beneficial, both to individuals and businesses. The idea is to be proactive concerning your tax situation so that you can still act before December 31st in order to reduce or shift your tax liabilities. 

A few key areas you may want to consider for year-end tax planning are:

Individuals:

• Withholding: Check to make sure you've been having enough tax withheld from your wages.
• Unemployment: Yes, it is fully taxable. Did you have any federal or state income tax withheld?
• Retirement Distributions: Did you have any this year? Did you have taxes withheld?
• Standard Deduction or Itemized Deduction: Which have you taken in the past? Do you have all the records you need?
• Contributions: Have you contributed the maximum amount to your retirement account, your HSA account, or your FSA?
• Investment Income: Did you sell stocks this year? If so, do you have a capital gain you will need to include in your income?
• Changes: Did you get married? Divorced? Have a baby? Send a child to college? Inherit money? Win the lottery?

Businesses:

• Books: Are your accounting records correct and up to date? There is more to it than simply reconciling bank statements.
• Co-Mingling: Be sure to unravel your business and personal expenses if you are guilty of co-mingling. This common practice causes your books to be wrong, and you may be basing your year-end planning on inaccurate numbers.
• Disallowed: Pay attention to those disallowed deductions!
• Purchases: If you have a large profit - is there equipment or other large purchases you can make by 12/31 to help reduce the profit?
• Cash Basis: If you are cash basis - you may want to manage your invoicing in order to shift income to 2023 or 2024, depending if there is a loss or a profit.

There are many tax avoidance strategies to use for year-end tax planning. Each individual and business is unique - so a strategy used for one, may not work well for another. If you would like to set up an appointment with one of our tax professionals, please call the office or email Sarah at SMcElroen@rtg.tax

Here we are, last week of November, and beginning December! The days are getting shorter and closer to the end of the year. The staff at The Roberts Tax Group hope you have had a wonderful year! Can you believe there are only 34 days until the New Year, which means tax filing?!

As we are getting closer to the end of the year, don't forget to reach out to your tax professional if you have had any changes in income, welcomed a baby, got married, got a raise at work to get in your year-end tax planning; as before we know it, January 1st will be here in no time!

Remember, you can always reach out to the staff at The Roberts Tax Group if you have any questions, or want to get your tax planning done by the end of the year! But don't wait!

The Roberts Tax Group will be closed Monday, December 25th, and Tuesday December 26th for Christmas.

The Roberts Tax Group will be closed Monday, January 1st for the New Year.

We look forward to answering all of your tax questions and concerns when we are back in the office.

December Calendar: 

See What Important Dates Are Coming Up!