Every year at Millennium Tax Advisors we publish tax preparation guidance based on IRS changes. Our tax tax preparers review changes with clients to ensure they are maximizing tax saving and preparing for the future. 

The five significant tax changes for 2024 encompass alterations to income tax brackets, the standard deduction, retirement contribution limits, the gift tax exclusion, and phase-out levels for Individual Retirement Account (IRA) deductions, Roth IRAs, and the Saver’s Credit. These annual adjustments for inflation aim to prevent taxpayers from being pushed into higher brackets solely due to cost-of-living increases, rather than salary raises.

While many of these adjustments may seem minor, even slight modifications can accumulate to significant savings or higher tax bills. For instance, a couple in the upper-middle class could potentially save over $1,000 by maximizing increased 401(k) contributions and adjusting their IRA deductibility strategies accordingly.