With the 2024 tax season just around the corner, there are some important updates you need to know about. Staying informed can help you plan and avoid surprises when you file your return.

IRS Mileage Rate Increase:
For 2024, the IRS standard mileage rate for business use has increased to 67 cents per mile, up from 65.5 cents in 2023. This means self-employed individuals, freelancers, or small business owners who use their vehicles for work can deduct more for every business mile driven. The charitable mileage rate remains at 14 cents per mile and the medical milage rate decreased by one cent to 21 cents/mile. Note that the 2025 mileage rates have already been published and the business mileage rate has been increased to 70 cents per mile. Medical and charitable mileage rates remain unchanged in 2025.

Increased Standard Deduction:
For 2024, the standard deduction has increased slightly to keep up with inflation. If you’re filing single, your standard deduction is now $14,600 (up from $14,100), and for married couples filing jointly, it’s $29,200.

IRA Contributions:
The IRS has increased the contribution limit for IRAs to $7,000. Individuals aged 50 and older are eligible to make an additional catch-up contribution of up to $1,000. Contributions to traditional or Roth IRAs for the 2024 tax year can be made up until April 15, 2025. However, there are adjusted gross income (AGI) limitations that may impact your eligibility to contribute. If you haven’t already made a contribution during the 2024 calendar year, there is still time to do so. That said, we recommend waiting and consulting with us to determine your maximum allowable contribution as part of your tax preparation process.
For question regarding these changes, reach out to your Sasetti contact.