Preparing Your 2024 Income Tax Return

Filing a federal income tax return is an annual requirement for most individuals. For the 2024 tax year, which is filed in 2025, specific tax laws, figures, and credits can affect your tax owed or refund. This guide covers the tax numbers, financial benefits, and steps for the filing process.

Core Tax Figures for 2024

The progressive U.S. tax system taxes higher portions of income at increasing rates. For 2024, the seven federal income tax brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The income thresholds for these brackets depend on your filing status, such as Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Widow(er).

For single filers in 2024, the 10% rate applies to income up to $11,600, while the top 37% rate applies to income over $609,350. For those married and filing a joint return, the 10% bracket extends to $23,200 of income, and the 37% bracket begins for income over $731,200. Head of Household filers have a 10% bracket up to $16,550 and a 37% bracket for income over $609,350.

Most taxpayers reduce their taxable income by claiming the standard deduction, a fixed amount that varies by filing status. For 2024, the standard deduction for single filers and those married filing separately is $14,600, for married couples filing jointly it is $29,200, and for heads of household, it is $21,900. An additional amount can be claimed by taxpayers who are age 65 or older or blind.

Saving for retirement can also provide a tax advantage. For 2024, the contribution limit for traditional 401(k) plans is $23,000. For Individual Retirement Arrangements (IRAs), the total contribution limit for traditional and Roth IRAs is $7,000. Individuals age 50 and over can make additional “catch-up” contributions.

Understanding Tax Deductions and Credits

Deductions and credits are two ways to lower your tax bill. A tax deduction reduces your taxable income, while a tax credit directly reduces your tax liability on a dollar-for-dollar basis. This distinction makes a credit more valuable than a deduction of the same amount.

Taxpayers can choose between taking the standard deduction or itemizing deductions. You should itemize if your total eligible expenses exceed the standard deduction for your filing status. Common itemized deductions include state and local taxes (SALT), which are capped at $10,000 per household per year.

Another itemized deduction is for mortgage interest on up to $750,000 of mortgage debt used to buy, build, or improve a home. A deduction is also available for the amount of unreimbursed medical expenses that exceeds 7.5% of your adjusted gross income (AGI). Charitable contributions to qualified organizations can be deducted, with limits based on a percentage of your AGI.

The Child Tax Credit for 2024 is worth up to $2,000 per qualifying child under age 17. To claim the full credit, your AGI must be below $400,000 for joint filers or $200,000 for other filers. A portion of this credit, up to $1,700 per child, may be refundable as the Additional Child Tax Credit, meaning you could receive it even if you owe no tax.

The Earned Income Tax Credit (EITC) is a refundable credit for low- to moderate-income working individuals and couples, with the amount based on income, filing status, and number of children. For 2024, the maximum credit is $7,830 for taxpayers with three or more qualifying children. Education credits include the American Opportunity Tax Credit (AOTC), providing up to $2,500 per student, and the Lifetime Learning Credit (LLC), offering up to $2,000 per return.

Information and Documents Needed to File

To file, you must gather personal and financial documents. First, collect personal information for everyone on your return, including full names, dates of birth, and Social Security numbers for yourself, your spouse, and any dependents. You will also need your bank account and routing numbers for direct deposit of a refund or direct debit of a payment.

Next, gather all documents reporting your income for the year. These include:

• Form W-2 from each employer
• Forms 1099-NEC and 1099-K if you are self-employed or an independent contractor
• Form 1099-INT for interest income
• Form 1099-DIV for dividends
• Form 1099-B for proceeds from stock sales
• Form 1099-R for distributions from retirement plans

Finally, you need records to substantiate any deductions or credits. For itemized deductions and credits, these include:

• Form 1098, which reports mortgage interest paid
• Records of property taxes paid
• Receipts for charitable contributions
• A log of any unreimbursed medical expenses
• Form 1098-T, Tuition Statement, for education credits

The Filing Process for Your 2024 Return

There are several methods for submitting your 2024 tax return to the IRS. Many taxpayers use tax preparation software, and those with an AGI of $84,000 or less may be eligible for IRS Free File. This partnership between the IRS and software companies allows qualified individuals to file their federal taxes for free.

Another option is to hire a tax professional, such as a Certified Public Accountant (CPA) or an Enrolled Agent, for help with complex financial situations. It is also possible to fill out and mail paper tax forms, though this method results in a longer processing time.

The primary deadline for filing your 2024 tax return is April 15, 2025. If you cannot meet this deadline, you can file for an extension using Form 4868 for an automatic extension to October 15, 2025. An extension to file is not an extension to pay; you must still estimate and pay any taxes owed by the April deadline to avoid potential penalties and interest.

After submitting your return, you can track your refund status using the “Where’s My Refund?” tool on the IRS website. You will need your Social Security number, filing status, and the exact refund amount to use the tool. The IRS may also send a notice if they need more information or have made a change to your return.