12/7/24
Ready to Tackle Your 2024 Taxes and Plan for 2025? Here Is How to Get Ahead
Year end checklist for closing out 2024 smoothly: gathering W2s, 1099s, 1099K gig records, 1095A Marketplace statements, maximizing 401(k) ($23,000 limit; $30,500 for 50+) and IRA ($7,000; $8,000 for 50+) contributions, $18,000 gift tax exclusion, and tax loss harvesting.
Reflecting on 2024: closing out the year right
As the year winds down, a little preparation now saves major headaches come filing season. Start by gathering all your records: W2s from employers, 1099s from freelance work or investment accounts, Form 1099K from gig platforms, cryptocurrency records, and Form 1095A if you had Marketplace health insurance.
Review whether you maximized contributions to your retirement accounts. Adding to an IRA or 401(k) reduces taxable income while building future security. Review underperforming investments for tax loss harvesting to offset capital gains, and confirm your direct deposit banking details are current with the IRS.
What changed for 2024 filings
Retirement contribution limits rose to $7,000 for IRAs ($8,000 if 50 or older) and $23,000 for 401(k) plans ($30,500 with catch up contributions for ages 50 and older). The annual gift tax exclusion increased to $18,000.
The Clean Vehicle Credit offered up to $7,500 within modified AGI caps ($300,000 married filing jointly, $225,000 head of household, $150,000 single), and SECURE 2.0 expanded penalty free early retirement withdrawal exceptions for federally declared disasters and domestic abuse survivors.
Looking ahead: why proactive preparation matters
Revisit your W4 withholding if you owed tax or received an oversized refund, track business mileage, meals, and charitable contributions consistently, and schedule a consultation whenever a major life or business change is on the horizon.