Important changes for the 2024 tax-filing season: Part 2

The IRS has made a variety of other changes that may affect your tax liability for tax year 2024.

Here’s a detailed look at these adjustments:

• New capital gain tax threshold. Capital gains taxes are levied on the sale of capital assets, such as stocks and bonds. For the 2024 tax year, individual tax filers will not have to pay any capital gains if their total taxable income is $47,025 or less. The capital gains tax jumps to 15 percent if your income exceeds $47,025.

• Gift tax exclusion increase. If you want to give money to friends or family members, you can give up to $18,000 to each individual in 2024 before incurring gift tax. That’s an increase over the $17,000 exclusion in 2023.

• Estate exemption increase. If a family member dies during 2024, their estate has a basic estate tax exclusion amount of $13.6 million, an increase from 12.92 million for estates owned by people who died in 2023.

• Health savings account deductible increase. To qualify for a health savings account (HSA) in 2024, participants’ insurance plans must have an annual deductible between $2,800 and $4,150 for individuals, with a maximum out-of-pocket expense amount 0f $5,550. For family coverage, the annual deductible must be between $5,550 and $8,350, with an out-of-pocket expense limit of $10,200. If you participate in an HSA plan, you can contribute more to your plan this year; up to $4,150 for individuals and up you $8,350 for families.

• Increased foreign income exclusion. If you earn income in a foreign country or from an employer in a foreign country, you may benefit from the foreign earned income exclusion, which increases to $126,500 in 2024.

Taxpayers with the same taxable income may see refunds increasing in 2024. Good news from the IRS!

Barry Lisak is an IRS enrolled agent specializing in personal and small business taxes for 30 years. Any questions can be directed to him at 516-829-7283, or mrbarrytax@aol.com.