As the cost of living continues to rise, so do the limits for income tax exemptions and deductions. In 2024, the standard deduction is expected to increase, allowing taxpayers to keep more of their hard-earned money. This is intended to prevent workers from being pushed into higher tax categories due to inflation, even if their standard of living has not changed. To help taxpayers understand the changes that have been made to income tax exemptions and deductions, here is a list of the most important ones:
- Standard Deduction: The standard deduction for 2024 is expected to increase, allowing taxpayers to keep more of their money.
- Interest on Debt: Interest on debt related to the purchase, construction, or significant improvement of your home is deductible.
It is important for taxpayers to understand these changes so that they can take advantage of them and maximize their savings.
