Скачать или смотреть NEW 2024 Tax Deductions! (Karen)

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Today, we will talk about a change in taxes for 2024. This change is called the "standard deduction increase." We will explain what it means, how it can help you, and how it affects your taxes. Understanding the standard deduction will help you pay less in taxes and might even help you get a larger refund.

What is the Standard Deduction?
The standard deduction is the amount of money you can subtract from your income before calculating your taxes. For example, if your income is $25,000 and you are single, you can subtract $14,600 from your income, which lowers the amount you are taxed on. The more you can subtract, the less you pay in taxes.Think of it as a way to lower your income, so you don’t pay taxes on that part.

How Much is the Increase in 2024?
For 2024, the standard deduction has increased. Here is the new amount:
Single: $13,850 in 2023, now $14,600 in 2024.
Married Filing Jointly: $27,700 in 2023, now $29,200 in 2024.
Head of Household: $20,800 in 2023, now $21,900 in 2024. This increase helps you reduce the amount of your income that is taxable, which can save you money.
For example, If you are single and earn $25,000, after subtracting $14,600, your taxable income is $10,400. The higher standard deduction means you will pay less in taxes.

Vocabulary
Income: The money you earn, such as from a job.)
Refund: Money returned to you by the government after filing taxes.
Deduction: An amount that is subtracted from your income to lower your taxes.

Who Can Use the Standard Deduction?
Most people can use the standard deduction. If you are a student, you may also qualify for education credits, and if you pay for daycare, you may qualify for the Child and Dependent Care Credit. If you're not sure, ask a tax professional. The standard deduction is a simple way to lower the amount of your income that is taxed, especially if you don't have many other deductions to claim.

Why is the Standard Deduction Increased?
The increase in the standard deduction helps people keep up with rising prices. It helps you pay less and possibly get a bigger refund. With more money in your pocket, you can pay for things like food, gas, and other expenses. It is a way for the government to give you a break when filing taxes.

File Your Taxes to Benefit from the Increase
Make sure to file your taxes to take advantage of the increased standard deduction. If you’re unsure about how to do it, remember that a tax professional can help you! If you miss the deadline or need more time, you can file for an extension until October 15, 2025. However, this does not give you extra time to pay any taxes owed. Watch our previous video about filing tax to understand the tax extension and how it works.

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Thank you to our sources who provided information for this video and to our interpreter today. Thank you to our partners at Milwaukee Public Schools. This video was made possible by the generous support of our grant funders.

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